000079196312/313/31/20212021Q1FALSE1,919410336,488440,53191,74190,95850,000,00050,000,00012,586,04312,381,77812,586,04312,381,7780.0010.00199,66599,66599,66599,66599,66599,6650.0010.00142,97944,1041,1141,15456,83750,33630120P1DP2D6.6700007919632021-01-012021-03-31xbrli:shares0000791963us-gaap:CommonClassAMember2021-04-300000791963us-gaap:CommonClassBMember2021-04-30iso4217:USD00007919632021-03-3100007919632020-12-310000791963us-gaap:CommonClassAMember2021-03-310000791963us-gaap:CommonClassAMember2020-12-310000791963us-gaap:CommonClassBMember2021-03-310000791963us-gaap:CommonClassBMember2020-12-31iso4217:USDxbrli:shares00007919632020-01-012020-03-310000791963us-gaap:CommonStockMember2020-12-310000791963us-gaap:CommonStockMember2019-12-310000791963us-gaap:CommonClassAMemberus-gaap:CommonStockMember2021-01-012021-03-310000791963us-gaap:CommonClassAMemberus-gaap:CommonStockMember2020-01-012020-03-310000791963us-gaap:CommonStockMember2021-03-310000791963us-gaap:CommonStockMember2020-03-310000791963us-gaap:AdditionalPaidInCapitalMember2020-12-310000791963us-gaap:AdditionalPaidInCapitalMember2019-12-310000791963us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310000791963us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-310000791963us-gaap:AdditionalPaidInCapitalMember2021-03-310000791963us-gaap:AdditionalPaidInCapitalMember2020-03-310000791963us-gaap:RetainedEarningsMember2020-12-310000791963us-gaap:RetainedEarningsMember2019-12-310000791963us-gaap:RetainedEarningsMember2020-01-012020-03-310000791963us-gaap:RetainedEarningsMember2021-01-012021-03-310000791963us-gaap:RetainedEarningsMember2021-03-310000791963us-gaap:RetainedEarningsMember2020-03-310000791963us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000791963us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310000791963us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310000791963us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310000791963us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310000791963us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-3100007919632020-03-3100007919632019-12-31opy:office0000791963country:US2021-03-310000791963srt:MinimumMember2021-01-012021-03-310000791963srt:MaximumMember2021-01-012021-03-310000791963opy:NotesReceivableFiveYearsandOlderMember2021-03-310000791963opy:NotesReceivableUnderFiveYearsMember2021-03-31xbrli:pure0000791963opy:RealEstateLeasesMember2021-03-310000791963opy:EquipmentLeasesMember2021-03-310000791963opy:RealEstateLeasesMember2021-03-310000791963opy:EquipmentLeasesMember2021-03-310000791963us-gaap:RealEstateMember2021-01-012021-03-310000791963us-gaap:RealEstateMember2020-01-012020-03-310000791963us-gaap:EquipmentMember2021-01-012021-03-310000791963us-gaap:EquipmentMember2020-01-012020-03-310000791963opy:CommissionsFromSalesAndTradingMemberopy:PrivateClientMember2021-01-012021-03-310000791963opy:AssetManagementSegmentMemberopy:CommissionsFromSalesAndTradingMember2021-01-012021-03-310000791963opy:CommissionsFromSalesAndTradingMemberopy:CapitalMarketsMember2021-01-012021-03-310000791963opy:CommissionsFromSalesAndTradingMemberus-gaap:CorporateAndOtherMember2021-01-012021-03-310000791963opy:CommissionsFromSalesAndTradingMember2021-01-012021-03-310000791963opy:MutualFundIncomeMemberopy:PrivateClientMember2021-01-012021-03-310000791963opy:AssetManagementSegmentMemberopy:MutualFundIncomeMember2021-01-012021-03-310000791963opy:CapitalMarketsMemberopy:MutualFundIncomeMember2021-01-012021-03-310000791963opy:MutualFundIncomeMemberus-gaap:CorporateAndOtherMember2021-01-012021-03-310000791963opy:MutualFundIncomeMember2021-01-012021-03-310000791963opy:AdvisoryFeesMemberopy:PrivateClientMember2021-01-012021-03-310000791963opy:AssetManagementSegmentMemberopy:AdvisoryFeesMember2021-01-012021-03-310000791963opy:CapitalMarketsMemberopy:AdvisoryFeesMember2021-01-012021-03-310000791963us-gaap:CorporateAndOtherMemberopy:AdvisoryFeesMember2021-01-012021-03-310000791963opy:AdvisoryFeesMember2021-01-012021-03-310000791963opy:InvestmentBankingCapitalMarketsMemberopy:PrivateClientMember2021-01-012021-03-310000791963opy:AssetManagementSegmentMemberopy:InvestmentBankingCapitalMarketsMember2021-01-012021-03-310000791963opy:InvestmentBankingCapitalMarketsMemberopy:CapitalMarketsMember2021-01-012021-03-310000791963opy:InvestmentBankingCapitalMarketsMemberus-gaap:CorporateAndOtherMember2021-01-012021-03-310000791963opy:InvestmentBankingCapitalMarketsMember2021-01-012021-03-310000791963opy:InvestmentBankingAdvisoryMemberopy:PrivateClientMember2021-01-012021-03-310000791963opy:AssetManagementSegmentMemberopy:InvestmentBankingAdvisoryMember2021-01-012021-03-310000791963opy:CapitalMarketsMemberopy:InvestmentBankingAdvisoryMember2021-01-012021-03-310000791963opy:InvestmentBankingAdvisoryMemberus-gaap:CorporateAndOtherMember2021-01-012021-03-310000791963opy:InvestmentBankingAdvisoryMember2021-01-012021-03-310000791963opy:BankDepositSweepIncomeMemberopy:PrivateClientMember2021-01-012021-03-310000791963opy:AssetManagementSegmentMemberopy:BankDepositSweepIncomeMember2021-01-012021-03-310000791963opy:BankDepositSweepIncomeMemberopy:CapitalMarketsMember2021-01-012021-03-310000791963opy:BankDepositSweepIncomeMemberus-gaap:CorporateAndOtherMember2021-01-012021-03-310000791963opy:BankDepositSweepIncomeMember2021-01-012021-03-310000791963opy:OtherMemberopy:PrivateClientMember2021-01-012021-03-310000791963opy:AssetManagementSegmentMemberopy:OtherMember2021-01-012021-03-310000791963opy:CapitalMarketsMemberopy:OtherMember2021-01-012021-03-310000791963us-gaap:CorporateAndOtherMemberopy:OtherMember2021-01-012021-03-310000791963opy:OtherMember2021-01-012021-03-310000791963opy:PrivateClientMember2021-01-012021-03-310000791963opy:AssetManagementSegmentMember2021-01-012021-03-310000791963opy:CapitalMarketsMember2021-01-012021-03-310000791963us-gaap:CorporateAndOtherMember2021-01-012021-03-310000791963opy:CommissionsFromSalesAndTradingMemberopy:PrivateClientMember2020-01-012020-03-310000791963opy:AssetManagementSegmentMemberopy:CommissionsFromSalesAndTradingMember2020-01-012020-03-310000791963opy:CommissionsFromSalesAndTradingMemberopy:CapitalMarketsMember2020-01-012020-03-310000791963opy:CommissionsFromSalesAndTradingMemberus-gaap:CorporateAndOtherMember2020-01-012020-03-310000791963opy:CommissionsFromSalesAndTradingMember2020-01-012020-03-310000791963opy:MutualFundIncomeMemberopy:PrivateClientMember2020-01-012020-03-310000791963opy:AssetManagementSegmentMemberopy:MutualFundIncomeMember2020-01-012020-03-310000791963opy:CapitalMarketsMemberopy:MutualFundIncomeMember2020-01-012020-03-310000791963opy:MutualFundIncomeMemberus-gaap:CorporateAndOtherMember2020-01-012020-03-310000791963opy:MutualFundIncomeMember2020-01-012020-03-310000791963opy:AdvisoryFeesMemberopy:PrivateClientMember2020-01-012020-03-310000791963opy:AssetManagementSegmentMemberopy:AdvisoryFeesMember2020-01-012020-03-310000791963opy:CapitalMarketsMemberopy:AdvisoryFeesMember2020-01-012020-03-310000791963us-gaap:CorporateAndOtherMemberopy:AdvisoryFeesMember2020-01-012020-03-310000791963opy:AdvisoryFeesMember2020-01-012020-03-310000791963opy:InvestmentBankingCapitalMarketsMemberopy:PrivateClientMember2020-01-012020-03-310000791963opy:AssetManagementSegmentMemberopy:InvestmentBankingCapitalMarketsMember2020-01-012020-03-310000791963opy:InvestmentBankingCapitalMarketsMemberopy:CapitalMarketsMember2020-01-012020-03-310000791963opy:InvestmentBankingCapitalMarketsMemberus-gaap:CorporateAndOtherMember2020-01-012020-03-310000791963opy:InvestmentBankingCapitalMarketsMember2020-01-012020-03-310000791963opy:InvestmentBankingAdvisoryMemberopy:PrivateClientMember2020-01-012020-03-310000791963opy:AssetManagementSegmentMemberopy:InvestmentBankingAdvisoryMember2020-01-012020-03-310000791963opy:CapitalMarketsMemberopy:InvestmentBankingAdvisoryMember2020-01-012020-03-310000791963opy:InvestmentBankingAdvisoryMemberus-gaap:CorporateAndOtherMember2020-01-012020-03-310000791963opy:InvestmentBankingAdvisoryMember2020-01-012020-03-310000791963opy:BankDepositSweepIncomeMemberopy:PrivateClientMember2020-01-012020-03-310000791963opy:AssetManagementSegmentMemberopy:BankDepositSweepIncomeMember2020-01-012020-03-310000791963opy:BankDepositSweepIncomeMemberopy:CapitalMarketsMember2020-01-012020-03-310000791963opy:BankDepositSweepIncomeMemberus-gaap:CorporateAndOtherMember2020-01-012020-03-310000791963opy:BankDepositSweepIncomeMember2020-01-012020-03-310000791963opy:OtherMemberopy:PrivateClientMember2020-01-012020-03-310000791963opy:AssetManagementSegmentMemberopy:OtherMember2020-01-012020-03-310000791963opy:CapitalMarketsMemberopy:OtherMember2020-01-012020-03-310000791963us-gaap:CorporateAndOtherMemberopy:OtherMember2020-01-012020-03-310000791963opy:OtherMember2020-01-012020-03-310000791963opy:PrivateClientMember2020-01-012020-03-310000791963opy:AssetManagementSegmentMember2020-01-012020-03-310000791963opy:CapitalMarketsMember2020-01-012020-03-310000791963us-gaap:CorporateAndOtherMember2020-01-012020-03-310000791963opy:CommissionMember2021-03-310000791963opy:CommissionMember2020-12-310000791963opy:MutualFundIncomeMember2021-03-310000791963opy:MutualFundIncomeMember2020-12-310000791963opy:AdvisoryFeesMember2021-03-310000791963opy:AdvisoryFeesMember2020-12-310000791963opy:BankDepositSweepIncomeMember2021-03-310000791963opy:BankDepositSweepIncomeMember2020-12-310000791963opy:InvestmentBankingFeesMember2021-03-310000791963opy:InvestmentBankingFeesMember2020-12-310000791963us-gaap:OtherIncomeMember2021-03-310000791963us-gaap:OtherIncomeMember2020-12-310000791963opy:InvestmentBankingFeesMember2021-03-310000791963opy:InvestmentBankingFeesMember2020-12-310000791963opy:IRAFeesMember2021-03-310000791963opy:IRAFeesMember2020-12-310000791963us-gaap:CommonClassAMember2020-01-012020-03-310000791963us-gaap:AuctionRateSecuritiesMember2021-03-310000791963opy:AuctionRateSecuritiesPurchaseCommitmentMember2021-03-310000791963us-gaap:HedgeFundsMember2021-03-310000791963us-gaap:HedgeFundsMember2021-01-012021-03-310000791963us-gaap:PrivateEquityFundsMember2021-03-310000791963us-gaap:HedgeFundsMember2020-12-310000791963us-gaap:HedgeFundsMember2020-01-012020-06-300000791963us-gaap:PrivateEquityFundsMember2020-12-310000791963us-gaap:FairValueInputsLevel2Member2021-03-310000791963us-gaap:FairValueInputsLevel1Member2021-03-310000791963us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasurySecuritiesMember2021-03-310000791963us-gaap:USTreasurySecuritiesMember2021-03-310000791963us-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-03-310000791963us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-03-310000791963us-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-03-310000791963us-gaap:FairValueInputsLevel2Memberus-gaap:SovereignDebtSecuritiesMember2021-03-310000791963us-gaap:SovereignDebtSecuritiesMember2021-03-310000791963us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMember2021-03-310000791963us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMember2021-03-310000791963us-gaap:CorporateDebtSecuritiesMember2021-03-310000791963us-gaap:FairValueInputsLevel2Memberus-gaap:CollateralizedMortgageObligationsMember2021-03-310000791963us-gaap:CollateralizedMortgageObligationsMember2021-03-310000791963us-gaap:FairValueInputsLevel2Memberus-gaap:MunicipalNotesMember2021-03-310000791963us-gaap:MunicipalNotesMember2021-03-310000791963us-gaap:FairValueInputsLevel2Memberus-gaap:ConvertibleDebtSecuritiesMember2021-03-310000791963us-gaap:ConvertibleDebtSecuritiesMember2021-03-310000791963us-gaap:FairValueInputsLevel1Memberopy:CorporateEquitiesMember2021-03-310000791963us-gaap:EquitySecuritiesMember2021-03-310000791963us-gaap:FairValueInputsLevel1Memberopy:MoneyMarketsMember2021-03-310000791963us-gaap:MoneyMarketFundsMember2021-03-310000791963us-gaap:FairValueInputsLevel1Memberus-gaap:AuctionRateSecuritiesMember2021-03-310000791963us-gaap:FairValueInputsLevel2Memberus-gaap:AuctionRateSecuritiesMember2021-03-310000791963us-gaap:FairValueInputsLevel3Memberus-gaap:AuctionRateSecuritiesMember2021-03-310000791963us-gaap:FairValueInputsLevel3Member2021-03-310000791963us-gaap:FairValueInputsLevel2Memberopy:ToBeAnnouncedSecurityMember2021-03-310000791963opy:ToBeAnnouncedSecurityMember2021-03-310000791963us-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesOtherMember2021-03-310000791963us-gaap:MortgageBackedSecuritiesOtherMember2021-03-310000791963us-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMember2021-03-310000791963us-gaap:FairValueInputsLevel1Memberus-gaap:FutureMember2021-03-310000791963us-gaap:FutureMember2021-03-310000791963us-gaap:FairValueInputsLevel2Memberopy:AuctionRateSecuritiesPurchaseCommitmentMember2021-03-310000791963opy:AuctionRateSecuritiesPurchaseCommitmentMemberus-gaap:FairValueInputsLevel3Member2021-03-310000791963us-gaap:FairValueInputsLevel1Member2020-12-310000791963us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasurySecuritiesMember2020-12-310000791963us-gaap:USTreasurySecuritiesMember2020-12-310000791963us-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-12-310000791963us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-12-310000791963us-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-12-310000791963us-gaap:FairValueInputsLevel2Memberus-gaap:SovereignDebtSecuritiesMember2020-12-310000791963us-gaap:SovereignDebtSecuritiesMember2020-12-310000791963us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMember2020-12-310000791963us-gaap:CorporateDebtSecuritiesMember2020-12-310000791963us-gaap:FairValueInputsLevel2Memberus-gaap:CollateralizedMortgageObligationsMember2020-12-310000791963us-gaap:CollateralizedMortgageObligationsMember2020-12-310000791963us-gaap:FairValueInputsLevel2Memberus-gaap:MunicipalNotesMember2020-12-310000791963us-gaap:FairValueInputsLevel3Memberus-gaap:MunicipalNotesMember2020-12-310000791963us-gaap:MunicipalNotesMember2020-12-310000791963us-gaap:FairValueInputsLevel2Memberus-gaap:ConvertibleDebtSecuritiesMember2020-12-310000791963us-gaap:ConvertibleDebtSecuritiesMember2020-12-310000791963us-gaap:FairValueInputsLevel1Memberopy:CorporateEquitiesMember2020-12-310000791963us-gaap:EquitySecuritiesMember2020-12-310000791963us-gaap:FairValueInputsLevel1Memberopy:MoneyMarketsMember2020-12-310000791963us-gaap:MoneyMarketFundsMember2020-12-310000791963us-gaap:FairValueInputsLevel2Memberus-gaap:AuctionRateSecuritiesMember2020-12-310000791963us-gaap:FairValueInputsLevel3Memberus-gaap:AuctionRateSecuritiesMember2020-12-310000791963us-gaap:AuctionRateSecuritiesMember2020-12-310000791963us-gaap:FairValueInputsLevel2Member2020-12-310000791963us-gaap:FairValueInputsLevel3Member2020-12-310000791963us-gaap:FairValueInputsLevel2Memberopy:ToBeAnnouncedSecurityMember2020-12-310000791963opy:ToBeAnnouncedSecurityMember2020-12-310000791963us-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMember2020-12-310000791963us-gaap:FairValueInputsLevel1Memberus-gaap:FutureMember2020-12-310000791963us-gaap:FutureMember2020-12-310000791963us-gaap:FairValueInputsLevel2Memberopy:AuctionRateSecuritiesPurchaseCommitmentMember2020-12-310000791963opy:AuctionRateSecuritiesPurchaseCommitmentMemberus-gaap:FairValueInputsLevel3Member2020-12-310000791963opy:AuctionRateSecuritiesPurchaseCommitmentMember2020-12-310000791963us-gaap:AuctionRateSecuritiesMember2021-01-012021-03-310000791963opy:AuctionRateSecuritiesPurchaseCommitmentMember2021-01-012021-03-310000791963us-gaap:FairValueMeasurementsNonrecurringMemberopy:CarryingValueMember2021-03-310000791963us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel1Member2021-03-310000791963us-gaap:FairValueMeasurementsNonrecurringMember2021-03-310000791963us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel2Member2021-03-310000791963us-gaap:FairValueMeasurementsNonrecurringMemberopy:CarryingValueMember2020-12-310000791963us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310000791963us-gaap:FairValueMeasurementsNonrecurringMember2020-12-310000791963us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310000791963us-gaap:NondesignatedMemberus-gaap:OtherContractMemberopy:ToBeAnnouncedSecurityMember2021-03-310000791963us-gaap:NondesignatedMember2021-03-310000791963us-gaap:CommodityContractMemberus-gaap:NondesignatedMemberus-gaap:FutureMember2021-03-310000791963us-gaap:NondesignatedMemberus-gaap:OtherContractMemberopy:AuctionRateSecuritiesPurchaseCommitmentMember2021-03-310000791963us-gaap:NondesignatedMemberus-gaap:OtherContractMemberopy:ToBeAnnouncedSecurityMember2020-12-310000791963us-gaap:NondesignatedMember2020-12-310000791963us-gaap:CommodityContractMemberus-gaap:NondesignatedMemberus-gaap:FutureMember2020-12-310000791963us-gaap:NondesignatedMemberus-gaap:OtherContractMemberopy:AuctionRateSecuritiesPurchaseCommitmentMember2020-12-310000791963us-gaap:PrincipalOrProprietaryTransactionsMemberus-gaap:CommodityContractMemberus-gaap:FutureMember2021-01-012021-03-310000791963us-gaap:PrincipalOrProprietaryTransactionsMemberus-gaap:OtherContractMemberopy:ToBeAnnouncedSecurityMember2021-01-012021-03-310000791963us-gaap:PrincipalOrProprietaryTransactionsMemberus-gaap:OtherContractMemberopy:AuctionRateSecuritiesPurchaseCommitmentMember2021-01-012021-03-310000791963us-gaap:PrincipalOrProprietaryTransactionsMemberus-gaap:CommodityContractMemberus-gaap:FutureMember2020-01-012020-03-310000791963us-gaap:ForeignExchangeForwardMemberus-gaap:OtherIncomeMemberus-gaap:OtherContractMember2020-01-012020-03-310000791963us-gaap:PrincipalOrProprietaryTransactionsMemberus-gaap:OtherContractMemberopy:ToBeAnnouncedSecurityMember2020-01-012020-03-310000791963us-gaap:PrincipalOrProprietaryTransactionsMemberus-gaap:OtherContractMemberopy:AuctionRateSecuritiesPurchaseCommitmentMember2020-01-012020-03-310000791963us-gaap:MaturityOvernightAndOnDemandMember2021-03-310000791963us-gaap:EquitySecuritiesMember2021-03-310000791963us-gaap:EquitySecuritiesMember2020-12-31opy:dealer0000791963opy:SpecialPurposeAcquisitionCompaniesMember2021-03-310000791963opy:SpecialPurposeAcquisitionCompaniesMember2020-12-310000791963us-gaap:SecuredDebtMemberopy:A550SeniorSecuredNotesMember2021-01-012021-03-310000791963opy:A550SeniorSecuredNotesMember2021-03-310000791963opy:A550SeniorSecuredNotesMember2020-12-310000791963us-gaap:SecuredDebtMemberopy:A550SeniorSecuredNotesMember2020-09-220000791963opy:A6.75SeniorSecuredNotesMember2020-09-2800007919632020-09-2800007919632020-09-220000791963opy:A550SeniorSecuredNotesMember2021-01-012021-03-310000791963opy:A6.75SeniorSecuredNotesMemberus-gaap:SecuredDebtMember2017-06-2300007919632019-08-252019-08-2500007919632020-09-282020-09-280000791963opy:A6.75SeniorSecuredNotesMember2020-01-012020-03-310000791963us-gaap:CommonClassAMember2019-12-310000791963us-gaap:CommonClassAMember2021-01-012021-03-310000791963us-gaap:CommonClassAMember2020-03-310000791963opy:NewProgramMemberus-gaap:CommonClassAMember2020-05-150000791963us-gaap:CommonClassAMember2020-05-150000791963us-gaap:CommonClassAMemberopy:PreviousProgramMember2020-05-150000791963opy:NewProgramMemberus-gaap:CommonClassAMember2021-01-012021-03-310000791963opy:NewProgramMemberus-gaap:CommonClassAMember2021-03-310000791963srt:MinimumMember2021-03-310000791963srt:MaximumMember2021-03-310000791963opy:OppenheimerMember2021-03-310000791963opy:OppenheimerMember2021-01-012021-03-310000791963opy:FreedomMember2021-03-310000791963opy:OppenheimerEuropeMember2021-03-31iso4217:EUR0000791963opy:OppenheimerInvestmentsAsiaMember2021-03-310000791963opy:FreedomMember2021-01-012021-03-310000791963opy:CorporateAndOtherSegmentMember2021-01-012021-03-310000791963opy:CorporateAndOtherSegmentMember2020-01-012020-03-310000791963srt:AmericasMember2021-01-012021-03-310000791963srt:AmericasMember2020-01-012020-03-310000791963opy:EuropeMiddleEastMember2021-01-012021-03-310000791963opy:EuropeMiddleEastMember2020-01-012020-03-310000791963srt:AsiaMember2021-01-012021-03-310000791963srt:AsiaMember2020-01-012020-03-310000791963us-gaap:SubsequentEventMemberus-gaap:CommonClassAMember2021-04-302021-04-300000791963us-gaap:SubsequentEventMemberus-gaap:CommonClassBMember2021-04-302021-04-300000791963us-gaap:SubsequentEventMember2021-05-282021-05-280000791963us-gaap:SubsequentEventMember2021-05-142021-05-14
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
 
FORM 10-Q
  
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2021
OR 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
 
Commission File Number 1-12043
 
OPPENHEIMER HOLDINGS INC.
(Exact name of registrant as specified in its charter)
 
Delaware 98-0080034
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)

85 Broad Street
New York, NY 10004
(Address of principal executive offices) (Zip Code)

(212) 668-8000
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report)
 


Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol Name of each exchange on which registered
Class A non-voting common stock OPY The New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act:

Not Applicable
(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes     No 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes     No 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer
Accelerated Filer
Non-accelerated filer
Smaller reporting company
Emerging growth company

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes      No  
The number of shares of the Company's Class A non-voting common stock and Class B voting common stock (being the only classes of common stock of the Company) outstanding on April 30, 2021 was 12,586,043 and 99,665 shares, respectively.



OPPENHEIMER HOLDINGS INC.
INDEX TO QUARTERLY REPORT ON FORM 10-Q

 
  Page No.
PART I
Item 1.
4
5
6
7
8
9
Item 2.
Item 3.
Item 4.
PART II
Item 1.
Item 1A.
Item 2.
Item 6.



PART I. FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS (UNAUDITED)

OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(Expressed in thousands, except number of shares and per share amounts) March 31, 2021 December 31, 2020
ASSETS
Cash and cash equivalents $ 28,545  $ 35,424 
Deposits with clearing organizations 77,294  83,343 
Receivable from brokers, dealers and clearing organizations 233,915  203,494 
Receivable from customers, net of allowance for credit losses of $1,919 ($410 in 2020) 1,152,499  1,110,835 
Securities purchased under agreements to resell 25,937  — 
Securities owned, including amounts pledged of $336,488 ($440,531 in 2020), at fair value 605,330  610,517 
Notes receivable, net 48,847  46,161 
Furniture, equipment and leasehold improvements, net of accumulated depreciation of $91,741 ($90,958 in 2020) 26,835  27,762 
Right-of-use lease assets, net of accumulated amortization of $56,837 ($50,336 in 2020)
155,658  153,502 
Goodwill 137,889  137,889 
Intangible assets 32,100  32,100 
Other assets 184,302  272,876 
Total assets $ 2,709,151  $ 2,713,903 
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Drafts payable $ 12,392  $ — 
Bank call loans 75,100  82,000 
Payable to brokers, dealers and clearing organizations 421,413  259,911 
Payable to customers 462,450  502,807 
Securities sold under agreements to repurchase 7,150  342,438 
Securities sold but not yet purchased, at fair value 360,486  126,171 
Accrued compensation 207,300  298,263 
Income tax payable 15,776  9,726 
Accounts payable and other liabilities 57,220  44,791 
Lease liabilities 194,771  193,373 
Senior secured notes, net of debt issuance costs of $1,114 ($1,154 in 2020) 123,886  123,846 
Deferred tax liabilities, net of deferred tax assets of $42,979 ($44,104 in 2020) 51,467  44,909 
Total liabilities 1,989,411  2,028,235 
Commitments and contingencies (note 13)
Stockholders' equity
Share capital
Class A non-voting common stock, par value $0.001 per share, 50,000,000 shares authorized, 12,586,043 and 12,381,778 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively 43,008  39,200 
Class B voting common stock, par value $0.001 per share, 99,665 shares authorized, issued and outstanding as of March 31, 2021 and December 31, 2020 133  133 
43,141  39,333 
Contributed capital 35,429  41,481 
Retained earnings 638,558  601,406 
Accumulated other comprehensive income 2,612  3,448 
Total stockholders' equity 719,740  685,668 
Total liabilities and stockholders' equity $ 2,709,151  $ 2,713,903 
The accompanying notes are an integral part of these condensed consolidated financial statements.
3


OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATED INCOME STATEMENTS (unaudited)
For the Three Months Ended March 31,
(Expressed in thousands, except number of shares and per share amounts) 2021 2020
REVENUE
Commissions $ 113,471  $ 103,249 
Advisory fees 104,496  86,164 
Investment banking 124,501  25,728 
Bank deposit sweep income 4,008  18,826 
Interest 8,666  10,890 
Principal transactions, net 10,865  (868)
Other 7,275  (9,219)
Total revenue 373,282  234,770 
EXPENSES
Compensation and related expenses 255,601  157,676 
Communications and technology 20,607  19,891 
Occupancy and equipment costs 15,182  16,078 
Clearing and exchange fees 6,275  5,659 
Interest 2,647  6,550 
Other 20,843  18,693 
Total expenses 321,155  224,547 
Pre-tax income 52,127  10,223 
Income taxes 13,469  2,405 
Net income $ 38,658  $ 7,818 
Earnings per share
Basic $ 3.07  $ 0.61 
Diluted $ 2.91  $ 0.58 
Weighted average shares
Basic 12,579,130  12,895,729 
Diluted 13,299,243  13,456,233 

The accompanying notes are an integral part of these condensed consolidated financial statements.
4


OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
For the Three Months Ended March 31,
(Expressed in thousands) 2021 2020
Net income $ 38,658  $ 7,818 
Other comprehensive loss, net of tax
Currency translation adjustment (836) (537)
Comprehensive income $ 37,822  $ 7,281 
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
5


OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited)

For the Three Months Ended March 31,
(Expressed in thousands, except per share amounts) 2021 2020
Share capital
Balance at beginning of period $ 39,333  $ 46,557 
Issuance of Class A non-voting common stock 3,808  6,183 
Repurchase of Class A non-voting common stock for cancellation —  (8,434)
Balance at end of period 43,141  44,306 
Contributed capital
Balance at beginning of period 41,481  47,406 
Share-based expense 2,460  2,062 
Vested employee share plan awards (8,512) (11,523)
Balance at end of period 35,429  37,945 
Retained earnings
Balance at beginning of period 601,406  496,998 
Net income 38,658  7,818 
Dividends paid (1,506) (1,561)
Balance at end of period 638,558  503,255 
Accumulated other comprehensive income
Balance at beginning of period 3,448  1,761 
Currency translation adjustment (836) (537)
Balance at end of period 2,612  1,224 
Total stockholders' equity $ 719,740  $ 586,730 
Dividends paid per share $ 0.12  $ 0.12 
The accompanying notes are an integral part of these condensed consolidated financial statements.
6

OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
FOR THE THREE MONTHS ENDED MARCH 31,
(Expressed in thousands) 2021 2020
Cash flows from operating activities
Net income $ 38,658  $ 7,818 
Adjustments to reconcile net income to net cash provided by operating activities
Non-cash items included in net income:
Depreciation and amortization of furniture, equipment and leasehold improvements 1,926  2,057 
Deferred income taxes 1,885  3,019 
Amortization of notes receivable 3,438  3,059 
Amortization of debt issuance costs 62  49 
Write-off of debt issuance costs — 
Provision for credit losses 1,509  358 
Share-based compensation 10,598  (1,376)
Amortization of right-of-use lease assets 6,501  6,213 
     Gain on repurchase of senior secured notes —  (86)
Decrease (increase) in operating assets:
Deposits with clearing organizations 6,049  (71,165)
Receivable from brokers, dealers and clearing organizations (30,421) (35,124)
Receivable from customers (43,173) (168,196)
Income tax receivable —  (1,113)
Securities purchased under agreements to resell (25,937) — 
Securities owned 5,187  490,373 
Notes receivable (6,124) (4,349)
Other assets 87,739  49,744 
Increase (decrease) in operating liabilities:
Drafts payable 12,392  19,066 
Payable to brokers, dealers and clearing organizations 161,502  (281,392)
Payable to customers (40,357) 78,911 
Income taxes payable 6,050  — 
Securities sold under agreements to repurchase (335,288) (163,162)
Securities sold but not yet purchased 234,315  (65,932)
Accrued compensation (99,101) (101,513)
Accounts payable and other liabilities 9,858  (8,286)
Cash (used in)/provided by operating activities 7,268  (241,023)
Cash flows from investing activities
Purchase of furniture, equipment and leasehold improvements (999) (1,326)
Cash used in investing activities (999) (1,326)
Cash flows from financing activities
Cash dividends paid on Class A non-voting and Class B voting common stock (1,506) (1,561)
Repurchase of Class A non-voting common stock for cancellation —  (8,434)
Payments for employee taxes withheld related to vested share-based awards (4,720) (5,340)
Repurchase of senior secured notes —  (1,426)
Debt issuance costs (22) — 
Increase in bank call loans, net (6,900) 203,100 
Cash provided by/(used in) financing activities (13,148) 186,339 
Net decrease in cash and cash equivalents (6,879) (56,010)
Cash and cash equivalents, beginning of period 35,424  79,550 
Cash and cash equivalents, end of period $ 28,545  $ 23,540 
Schedule of non-cash financing activities
Employee share plan issuance $ 6,228  $ 10,032 
Supplemental disclosure of cash flow information
Cash paid during the period for interest $ 4,578  $ 9,095 
Cash paid during the period for income taxes, net $ 797  $ 516 
The accompanying notes are an integral part of these condensed consolidated financial statements.
7


OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)

1.    Organization
Oppenheimer Holdings Inc. ("OPY" or the "Parent") is incorporated under the laws of the State of Delaware. The condensed consolidated financial statements include the accounts of OPY and its consolidated subsidiaries (together, the "Company"). Oppenheimer Holdings Inc., through its operating subsidiaries, is a leading middle market investment bank and full service broker-dealer that is engaged in a broad range of activities in the financial services industry, including retail securities brokerage, institutional sales and trading, investment banking (corporate and public finance), equity and fixed income research, market-making, trust services, and investment advisory and asset management services.
The Company is headquartered in New York and has 92 retail branch offices in the United States and institutional businesses located in London, Tel Aviv, and Hong Kong. The principal subsidiaries of OPY are Oppenheimer & Co. Inc. ("Oppenheimer"), a registered broker-dealer in securities and investment adviser under the Investment Advisers Act of 1940; Oppenheimer Asset Management Inc. ("OAM") and its wholly-owned subsidiary, Oppenheimer Investment Management LLC, both registered investment advisers under the Investment Advisers Act of 1940; Oppenheimer Trust Company of Delaware ("Oppenheimer Trust"), a limited purpose trust company that provides fiduciary services such as trust and estate administration and investment management; OPY Credit Corp., which offers syndication as well as trading of issued corporate loans; Oppenheimer Europe Ltd., based in the United Kingdom, with offices in the Isle of Jersey, Germany and Switzerland, which provides institutional equities and fixed income brokerage and corporate finance and is regulated by the Financial Conduct Authority; and Oppenheimer Investments Asia Limited, based in Hong Kong, China, which provides fixed income and equities brokerage services to institutional investors and is regulated by the Securities and Futures Commission.
Oppenheimer owns Freedom Investments, Inc. ("Freedom"), a registered broker dealer in securities, which provides discount brokerage services, and Oppenheimer Israel (OPCO) Ltd., which is engaged in offering investment services in the State of Israel. Oppenheimer holds a trading permit on the New York Stock Exchange and is a member of several other regional exchanges in the United States.
2.    Summary of significant accounting policies and estimates
Basis of Presentation
The accompanying condensed consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC") regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America ("U.S. GAAP") for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 (the "Form 10-K"). The accompanying condensed consolidated balance sheet data was derived from the audited consolidated financial statements but does not include all disclosures required by U.S. GAAP for annual financial statement purposes. The accompanying condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. Preparing financial statements requires management to make estimates and assumptions that affect the amounts that are reported in the financial statements and the accompanying disclosures. Although these estimates are based on management's knowledge of current events and actions that the Company may undertake in the future, actual results may differ materially from the estimates. The condensed consolidated results of operations for the three-month period ended March 31, 2021 are not necessarily indicative of the results to be expected for any future interim or annual period.

On January 30, 2020, the spread of the novel coronavirus ("COVID-19") was declared a Public Health Emergency of International Concern by the World Health Organization ("WHO"). Subsequently, on March 11, 2020, the WHO characterized the COVID-19 outbreak as a pandemic (the "COVID-19 Pandemic"). The United States has the world’s most reported COVID-19 cases, and all 50 states and the District of Columbia have reported cases of infected individuals. The COVID-19 Pandemic coupled with the current market volatility has created an economic environment which may have significant accounting and financial reporting implications. The disruption of businesses around the globe due to COVID-19 may be a "trigger event" for companies to reassess valuation and accounting estimates and assumptions such as, impairment of goodwill, valuation allowances of deferred tax assets, fair value of investments and collectability of receivables.

8


OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)

The Company has reviewed the assumptions on which it values its goodwill, as well as valuation allowances on certain assets and the collectability of its receivables as of March 31, 2021, which did not result in any impairment or write off.

3.    Financial Instruments - Credit Losses

On January 1, 2020, the Company adopted ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which replaces the incurred loss methodology with a current expected credit loss ("CECL") methodology. The Company elected the modified retrospective method which did not result in a cumulative effect adjustment at the date of adoption.

The Company can elect to use an approach to measure the allowance for credit losses using the fair value of collateral where the borrower is required to, and reasonably expected to, continually adjust and replenish the amount of collateral securing the instrument to reflect changes in the fair value of such collateral. The Company has elected to use this approach for securities borrowed, margin loans and reverse repurchase agreements. No material historical losses have been reported on these assets. See note 9 for details.

As of March 31, 2021, the Company had $48.8 million of notes receivable. Notes receivable represents recruiting and retention payments generally in the form of upfront loans to financial advisors and key revenue producers as part of the Company's overall growth strategy. These notes generally amortize over a service period of 3 to 10 years from the initial date of the note or based on productivity levels of employees. All such notes are contingent on the employees' continued employment with the Company. The unforgiven portion of the notes becomes due on demand in the event the employee departs during the service period. At this point any uncollected portion of the notes gets reclassified into a defaulted notes category.

The allowance for uncollectibles is a valuation account that is deducted from the amortized cost basis of the defaulted notes balance to present the net amount expected to be collected. Balances are charged-off against the allowance when management deems the amount to be uncollectible.

The Company reserves 100% of the uncollected balance of defaulted notes which are five years and older and applies an expected loss rate to the remaining balance. The expected loss rate is based on historical collection rates of defaulted notes. The expected loss rate is adjusted for changes in environmental and market conditions such as changes in unemployment rates, changes in interest rates and other relevant factors. For the three months ended March 31, 2021 no adjustments were made to the expected loss rates. The Company will continuously monitor the effect of these factors on the expected loss rate and adjust it as necessary.

The allowance is measured on a pool basis as the Company has determined that the entire defaulted portion of notes receivable has similar risk characteristics.

As of March 31, 2021, the uncollected balance of defaulted notes was $6.5 million and the allowance for uncollectibles was $4.8 million. The allowance for uncollectibles consisted of $3.5 million related to defaulted notes balances (five years and older) and $1.3 million (under five years) using an expected loss rate of 42.7%.

9


OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)

The following table presents the disaggregation of defaulted notes by year of origination as of March 31, 2021:
(Expressed in thousands)
As of March 31, 2021
2021 $ 1,064 
2020 644 
2019 444 
2018 173 
2017 662 
2016 and prior 3,491 
Total $ 6,478 

The following table presents activity in the allowance for uncollectibles of defaulted notes for the three months ended
March 31, 2021:
(Expressed in thousands)
For the Three Months Ended
March 31, 2021
Beginning balance $ 4,234 
      Additions and other adjustments 532 
Ending balance $ 4,766 
4.    Leases

In the first quarter of 2019, the Company adopted ASU 2016-02, "Leases". The ASU requires the recognition of a right-of-use asset and lease liability on the condensed consolidated balance sheet by lessees for those leases classified as operating leases under previous guidance. The Company elected the modified retrospective method which did not result in a cumulative-effect adjustment at the date of adoption.

The Company and its subsidiaries have operating leases for office space and equipment expiring at various dates through 2034. The Company leases its corporate headquarters at 85 Broad Street, New York, New York which houses its executive management team and many administrative functions for the firm as well as its research, trading, investment banking, and asset management divisions and an office in Troy, Michigan, which among other things, houses its payroll and human resources departments. In addition, the Company has 92 retail branch offices in the United States as well as offices in London, England, St. Helier, Isle of Jersey, Geneva, Switzerland, Munich, Germany, Tel Aviv, Israel and Hong Kong, China.

The Company is constantly assessing its needs for office space and, on a rolling basis, has many leases that expire in any given year.

The majority of the leases are held by the Company's subsidiary, Viner Finance Inc., which is a consolidated subsidiary and 100% owned by the Company.







10


OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)

Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Most leases include an option to renew and the exercise of lease renewal options is at the Company's sole discretion. The Company did not include the renewal options as part of the right of use assets and liabilities.

The depreciable life of assets and leasehold improvements is limited by the expected lease term. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As of March 31, 2021, the Company had right-of-use operating lease assets of $155.7 million (net of accumulated amortization of $56.8 million) which are comprised of real estate leases of $153.2 million (net of accumulated amortization of $52.6 million) and equipment leases of $2.5 million (net of accumulated amortization of $4.2 million). As of March 31, 2021, the Company had operating lease liabilities of $194.8 million which are comprised of real estate lease liabilities of $192.3 million and equipment lease liabilities of $2.5 million. As of March 31, 2021, the Company had not made any cash payments for amounts included in the measurement of operating lease liabilities or right-of-use assets obtained in exchange for operating lease obligations. The Company had no finance leases or embedded leases as of March 31, 2021.

As most of the Company's leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company used the incremental borrowing rate on January 1, 2019 for operating leases that commenced prior to that date. The Company used the incremental borrowing rate as of the lease commencement date for the operating leases that commenced subsequent to January 1, 2019.

The following table presents the weighted average lease term and weighted average discount rate for the Company's operating leases as of March 31, 2021 and December 31, 2020, respectively:
As of
March 31, 2021 December 31, 2020
Weighted average remaining lease term (in years) 7.66 7.84
Weighted average discount rate 7.32% 7.43%

The following table presents operating lease costs recognized for the three months ended March 31, 2021 and March 31, 2020, respectively, which are included in occupancy and equipment costs on the condensed consolidated income statements:    
(Expressed in thousands)
For the Three Months Ended
March 31,
2021 2020
Operating lease costs:
   Real estate leases - Right-of-use lease asset amortization $ 6,056  $ 5,740 
   Real estate leases - Interest expense 3,596  3,911 
   Equipment leases - Right-of-use lease asset amortization 445  473 
   Equipment leases - Interest expense 39  54 
    

11


OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)

The maturities of lease liabilities as of March 31, 2021 and December 31, 2020 are as follows:    
(Expressed in thousands)
As of
March 31, 2021 December 31, 2020
2021 $ 31,480  $ 40,981 
2022 38,610  36,999 
2023 35,592  33,984 
2024 30,916  29,425 
2025 25,377  23,872 
After 2025 94,474  92,069 
Total lease payments $ 256,449  $ 257,330 
Less interest (61,678) (63,957)
Present value of lease liabilities $ 194,771  $ 193,373 

As of March 31, 2021, the Company had $18.7 million of additional operating leases that have not yet commenced ($19.2 million as of December 31, 2020).
5.    Revenue from contracts with customers
Revenue from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by transferring the promised goods or services to customers. A good or service is transferred to a customer when, or as, the customer obtains control of that good or service. A performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied over time is recognized by measuring the Company's progress in satisfying the performance obligation in a manner that depicts the transfer of the goods or services to the customer.
Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Company determines the customer obtains control over the promised good or service. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled in exchange for those promised goods or services (i.e., the "transaction price"). In determining the transaction price, the Company considers multiple factors, including the effects of variable consideration. Variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainties with respect to the amount are resolved. In determining when to include variable consideration in the transaction price, the Company considers the range of possible outcomes, the predictive value of its past experiences, the time period of when uncertainties expect to be resolved and the amount of consideration that is susceptible to factors outside of the Company's influence, such as market volatility or the judgment and actions of third parties.

The Company earns revenue from contracts with customers and other sources (principal transactions, interest and other). The following provides detailed information on the recognition of the Company's revenue from contracts with customers:
Commissions
Commissions from Sales and Trading — The Company earns commission revenue by executing, settling and clearing transactions with clients primarily in exchange-traded and over-the-counter corporate equity and debt securities, money market instruments and exchange-traded options and futures contracts. A substantial portion of Company's revenue is derived from commissions from private clients through accounts with transaction-based pricing. Trade execution and clearing services, when provided together, represent a single performance obligation as the services are not separately identifiable in the context of the contract. Commission revenue associated with combined trade execution and clearing services, as well as trade execution services on a standalone basis, is recognized at a point in time on trade date when the performance obligation is satisfied.



12


OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)

Commission revenue is generally paid on settlement date, which is generally two business days after trade date for equity securities and corporate bond transactions and one day for government securities and commodities transactions. The Company records a receivable on the trade date and receives a payment on the settlement date.

Mutual Fund Income — The Company earns mutual fund income for sales and distribution of mutual fund shares. Many mutual fund companies pay distribution fees to intermediaries, such as broker-dealers, for selling their shares. The fees are operational expenses of the mutual fund and are included in its expense ratio. The Company recognizes mutual fund income at a point in time on trade date when the performance obligation is satisfied which is when the mutual fund interest is sold to the investor. Mutual fund income is generally received within 90 days.
Advisory Fees
The Company earns management and performance (or incentive) fees in connection with the advisory and asset management services it provides to various types of funds and investment vehicles through its subsidiaries. Management fees are generally based on the account value at the valuation date per the respective asset management agreements and are recognized over time as the customer receives the benefits of the services evenly throughout the term of the contract. Performance fees are recognized when the return on client AUM exceeds a specified benchmark return or other performance targets over a 12-month measurement period are met. Performance fees are considered variable as they are subject to fluctuation and/or are contingent on a future event over the measurement period and are not subject to adjustment once the measurement period ends. Such fees are computed as of the fund's year-end when the measurement period ends and generally are recorded as earned in the fourth quarter of the Company's fiscal year. Both management and performance fees are generally received within 90 days.
Investment Banking
The Company earns underwriting revenues by providing capital raising solutions for corporate clients through initial public offerings, follow-on offerings, equity-linked offerings, private investments in public entities, and private placements. Underwriting revenues are recognized at a point in time on trade date, as the client obtains the control and benefit of the capital markets offering at that point. These fees are generally received within 90 days after the transactions are completed. Transaction-related expenses, primarily consisting of legal, travel and other costs directly associated with the transaction, are deferred and recognized in the same period as the related investment banking transaction revenue. Underwriting revenues and related expenses are presented gross on the condensed consolidated income statements.
Revenue from financial advisory services includes fees generated in connection with mergers, acquisitions and restructuring transactions and such revenue and fees are primarily recorded at a point in time when services for the transactions are completed and income is reasonably determinable, generally as set forth under the terms of the engagement. Payment for advisory services is generally due upon completion of the transaction or milestone. Retainer fees and fees earned from certain advisory services are recognized ratably over the service period as the customer receives the benefit of the services throughout the term of the contracts, and such fees are collected based on the terms of the contracts.

Bank Deposit Sweep Income
Bank deposit sweep income consists of revenue earned from the FDIC-insured bank deposit program. Under this program, client funds are swept into deposit accounts at participating banks and are eligible for FDIC deposit insurance up to FDIC standard maximum deposit insurance amounts. Fees are earned over time and are generally received within 30 days.

13


OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)

Disaggregation of Revenue
The following presents the Company's revenue from contracts with customers disaggregated by major business activity and other sources of revenue for the three months ended March 31, 2021 and 2020:
(Expressed in thousands) For the Three Months Ended March 31, 2021
Reportable Segments
Private Client Asset Management Capital Markets Corporate/Other Total
Revenue from contracts with customers:
Commissions from sales and trading $ 48,398  $ —  $ 55,800  $ (3) $ 104,195 
Mutual fund income 9,198  —  76  9,276 
Advisory fees 80,254  24,227  12  104,496 
Investment banking - capital markets 8,510  —  80,069  —  88,579 
Investment banking - advisory —  —  35,922  —  35,922 
Bank deposit sweep income 4,008  —  —  —  4,008 
Other 3,120  —  559  14  3,693 
Total revenue from contracts with customers 153,488  24,227  172,355  99  350,169 
Other sources of revenue:
Interest 6,476  —  2,152  38  8,666 
Principal transactions, net 630  —  8,954  1,281  10,865 
Other 3,429  138  12  3,582 
Total other sources of revenue 10,535  11,244  1,331  23,113 
Total revenue $ 164,023  $ 24,230  $ 183,599  $ 1,430  $ 373,282 

(Expressed in thousands) For the Three Months Ended March 31, 2020
Reportable Segments
Private Client Asset Management Capital Markets Corporate/Other Total
Revenue from contracts with customers:
Commissions from sales and trading $ 47,105  $ —  $ 46,287  $ 20  $ 93,412 
Mutual fund income 9,827  9,837 
Advisory fees 66,883  19,270  86,164 
Investment banking - capital markets 3,950  —  11,942  —  15,892 
Investment banking - advisory —  —  9,836  —  9,836 
Bank deposit sweep income 18,826  —  —  —  18,826 
Other 3,131  —  640  101  3,872 
Total revenue from contracts with customers 149,722  19,273  68,710  134  237,839 
Other sources of revenue:
Interest 7,680  —  2,824  386  10,890 
Principal transactions, net (2,715) —  3,984  (2,137) (868)
Other (13,269) 24  151  (13,091)
Total other sources of revenue (8,304) 6,832  (1,600) (3,069)
Total revenue $ 141,418  $ 19,276  $ 75,542  $ (1,466) $ 234,770 


14


OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)

Contract Balances
The timing of the Company's revenue recognition may differ from the timing of payment by its customers. The Company records receivables when revenue is recognized prior to payment and it has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied.
The Company had receivables related to revenue from contracts with customers of $48.9 million and $30.8 million at March 31, 2021 and December 31, 2020, respectively. The Company had no significant impairments related to these receivables during the three months ended March 31, 2021.
Deferred revenue relates to IRA fees received annually in advance on customers' IRA accounts managed by the Company and retainer fees and other fees earned from certain advisory transactions where the performance obligations have not yet been satisfied. Total deferred revenue was $2.2 million and $613,000 at March 31, 2021 and December 31, 2020, respectively.
The following presents the Company's contract assets and deferred revenue balances from contracts with customers, which are included in other assets and other liabilities, respectively, on the condensed consolidated balance sheet:
(Expressed in thousands) As of
March 31, 2021 December 31, 2020
Contract assets (receivables):
Commission (1)
$ 5,601  $ 3,107 
Mutual fund income (2)
6,222  5,989 
Advisory fees (3)
2,873  1,590 
Bank deposit sweep income (4)
670  687 
Investment banking fees (5)
29,398  16,119 
  Other 4,185  3,324 
Total contract assets $ 48,949  $ 30,816 
Deferred revenue (payables):
Investment banking fees (6)
$ 528  $ 613 
IRA fees (7)
1,718  — 
Total deferred revenue $ 2,246  $ 613 
(1)Commission recorded on trade date but not yet settled.
(2)Mutual fund income earned but not yet received.
(3)Management and performance fees earned but not yet received.
(4)Fees earned from FDIC-insured bank deposit program but not yet received.
(5)Underwriting revenue and advisory fees earned but not yet received.
(6)Retainer fees and fees earned from certain advisory transactions where the performance
obligations have not yet been satisfied.
(7)Fee received in advance on an annual basis.



15


OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)

6.    Earnings per share
Basic earnings per share is computed by dividing net income over the weighted average number of shares of Class A non-voting common stock ("Class A Stock") and Class B voting common stock ("Class B Stock") outstanding. Diluted earnings per share includes the weighted average number of shares of Class A Stock and Class B Stock outstanding and options to purchase Class A Stock and unvested restricted stock awards of Class A Stock using the treasury stock method.
Earnings per share have been calculated as follows:
(Expressed in thousands, except number of shares and per share amounts)
  For the Three Months Ended
March 31,
  2021 2020
Basic weighted average number of shares outstanding 12,579,130  12,895,729 
Net dilutive effect of share-based awards, treasury method (1)
720,113  560,504 
Diluted weighted average number of shares outstanding 13,299,243  13,456,233 
Net income $ 38,658  $ 7,818 
Earnings per share
       Basic $ 3.07  $ 0.61 
       Diluted $ 2.91  $ 0.58 
(1) For the three months ended March 31, 2021, there was no Class A Stock granted under share-based compensation
arrangements that were anti-dilutive. For the three months ended March 31, 2020, the diluted net income per share
computation did not include the anti-dilutive effect of 10,770 shares of Class A Stock granted under share-based
compensation arrangements.
    
7.    Receivable from and payable to brokers, dealers and clearing organizations
(Expressed in thousands)    
  As of
  March 31, 2021 December 31, 2020
Receivable from brokers, dealers and clearing organizations consists of:
Other 744  15,634 
Total $ 233,915  $ 203,494 
Payable to brokers, dealers and clearing organizations consists of:
Securities loaned $ 257,342  $ 249,499 
Payable to brokers 1,336  4,102 
Securities failed to receive 38,100  6,218 
Other (1)
124,635  92 
Total $ 421,413  $ 259,911 
(1) Balance as of March 31, 2021 is primarily related to a trade/settlement date adjustment for U.S. Government Securities.
16


OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)

8.    Fair value measurements
Securities owned, securities sold but not yet purchased, investments and derivative contracts are carried at fair value with changes in fair value recognized in earnings each period.
Valuation Techniques
A description of the valuation techniques applied, and inputs used in measuring the fair value of the Company's financial instruments, is as follows:
U.S. Government Obligations
U.S. Treasury securities are valued using quoted market prices obtained from active market makers and inter-dealer brokers.
U.S. Agency Obligations
U.S. agency securities consist of agency issued debt securities and mortgage pass-through securities. Non-callable agency issued debt securities are generally valued using quoted market prices. Callable agency issued debt securities are valued by benchmarking model-derived prices to quoted market prices and trade data for identical or comparable securities. The fair value of mortgage pass-through securities are model driven with respect to spreads of the comparable to-be-announced ("TBA") security.
Sovereign Obligations
The fair value of sovereign obligations is determined based on quoted market prices when available or a valuation model that generally utilizes interest rate yield curves and credit spreads as inputs.
Corporate Debt and Other Obligations
The fair value of corporate bonds is estimated using recent transactions, broker quotations and bond spread information.

Mortgage and Other Asset-Backed Securities
The Company values non-agency securities collateralized by home equity and various other types of collateral based on external pricing and spread data provided by independent pricing services. When specific external pricing is not observable, the valuation is based on yields and spreads for comparable bonds.
Municipal Obligations
The fair value of municipal obligations is estimated using recently executed transactions, broker quotations, and bond spread information.
Convertible Bonds
The fair value of convertible bonds is estimated using recently executed transactions and dollar-neutral price quotations, where observable. When observable price quotations are not available, fair value is determined based on cash flow models using yield curves and bond spreads as key inputs.
Corporate Equities
Equity securities and options are generally valued based on quoted prices from the exchange or market where traded. To the extent quoted prices are not available, fair values are generally derived using bid/ask spreads.






17


OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)

Auction Rate Securities ("ARS")
Background
In February 2010, Oppenheimer finalized settlements with each of the New York Attorney General's office ("NYAG") and the Massachusetts Securities Division ("MSD") and, together (the "Regulators") concluding proceedings by the Regulators concerning Oppenheimer's marketing and sale of ARS. Pursuant to the settlements with the Regulators, Oppenheimer agreed to extend offers to repurchase ARS from certain of its clients. Over the last ten years, the Company has bought back $143.4 million of ARS pursuant to these settlements. These buybacks coupled with ARS issuer redemptions and tender offers have significantly reduced the level of ARS held by Eligible Investors (as defined). As of March 31, 2021, the Company had $435,000 of ARS to purchase from Eligible Investors related to the settlements with the Regulators. In addition to the settlements with the Regulators, Oppenheimer has also reached settlements of and received adverse awards in legal proceedings with various clients where the Company is obligated to purchase ARS. Over the last ten years, the Company has purchased $106.1 million of ARS pursuant to these legal settlements and awards. The Company has completed its ARS purchase obligations under such legal settlements and awards.
As of March 31, 2021, the Company owned $31.5 million of ARS. This amount represents the unredeemed or unsold amount that the Company holds as a result of ARS buybacks pursuant to the settlements with the Regulators and legal settlements and awards referred to above.
Valuation
The Company’s ARS owned and ARS purchase commitments referred to above have, for the most part, been subject to issuer tender offers. The Company has valued the ARS securities owned and the ARS purchase commitments at the tender offer price and categorized them in Level 3 of the fair value hierarchy due to the illiquid nature of the securities and the period of time since the last tender offer. The ARS purchase commitments related to the settlements with the Regulators and legal settlements and awards are considered derivative assets or liabilities. The ARS purchase commitments represent the difference between the principal value and the fair value of the ARS the Company is committed to purchase. The fair value of ARS and ARS purchase commitments is particularly sensitive to movements in interest rates. However, an increase or decrease in short-term interest rates may or may not result in a higher or lower tender offer in the future or the tender offer price may not provide a reasonable estimate of the fair value of the securities. In such cases, other valuation techniques might be necessary.

As of March 31, 2021, the Company had a valuation adjustment totaling $5.2 million which consists of $5.1 million for ARS owned (which is included as a reduction to securities owned on the condensed consolidated balance sheet) and $0.1 million for ARS purchase commitments from settlements with regulators (which is included in accounts payable and other liabilities on the condensed consolidated balance sheet).    

Investments    
In its role as general partner in certain hedge funds and private equity funds, the Company, through its subsidiaries, holds direct investments in such funds. The Company uses the net asset value of the underlying fund as a basis for estimating the fair value of its investment.
The following table provides information about the Company's investments in Company-sponsored funds as of March 31, 2021:
(Expressed in thousands)        
  Fair Value Unfunded
Commitments
Redemption
Frequency
Redemption
Notice Period
Hedge funds (1)
$ 1,112  $ —  Quarterly - Annually 30 - 120 Days
Private equity funds (2)
3,709  3,011  N/A N/A
$ 4,821  $ 3,011 
(1) Includes investments in hedge funds and hedge fund of funds that pursue long/short, event-driven, and activist strategies.
(2) Includes private equity funds and private equity fund of funds with a focus on diversified portfolios, real estate and
global natural resources

18


OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)

The following table provides information about the Company's investments in Company-sponsored funds as of December 31, 2020:

(Expressed in thousands)        
  Fair Value Unfunded
Commitments
Redemption
Frequency
Redemption
Notice Period
Hedge funds (1)
$ 1,126  $ —  Quarterly - Annually 30 - 120 Days
Private equity funds (2)
3,710  1,238  N/A N/A
$ 4,836  $ 1,238 
(1) Includes investments in hedge funds and hedge fund of funds that pursue long/short, event-driven, and activist strategies.
(2) Includes private equity funds and private equity fund of funds with a focus on diversified portfolios, real estate and
global natural resources.

During 2020, the Company made an investment in a financial technologies firm. The Company elected the fair value option for this investment and it is included in other assets on the condensed consolidated balance sheet. The Company determined the fair value of the investment based on an implied market-multiple approach and observable market data, including comparable company transactions. As of March 31, 2021, the fair value of the investment was $4.4 million and was categorized in Level 2 of the fair value hierarchy.

Assets and Liabilities Measured at Fair Value
The Company's assets and liabilities, recorded at fair value on a recurring basis as of March 31, 2021 and December 31, 2020, have been categorized based upon the above fair value hierarchy as follows:


19


OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)

Assets and liabilities measured at fair value on a recurring basis as of March 31, 2021:
(Expressed in thousands)        
  Fair Value Measurements as of March 31, 2021
  Level 1 Level 2 Level 3 Total
Assets
Deposits with clearing organizations $ 25,899  $ —  $ —  $ 25,899 
Securities owned:
U.S. Treasury securities 427,489  —  —  427,489 
U.S. Agency securities —  18,339  —  18,339 
Sovereign obligations —  409  —  409 
Corporate debt and other obligations —  21,227  —  21,227 
Mortgage and other asset-backed securities —  5,541  —  5,541 
Municipal obligations —  40,296  —  40,296 
Convertible bonds —  18,782  —  18,782 
Corporate equities 41,364  —  —  41,364 
Money markets 413  —  —  413 
Auction rate securities —  —  31,470  31,470 
Securities owned, at fair value 469,266  104,594  31,470  605,330 
Investments (1)
—  4,440  —  4,440 
Derivative contracts:
TBAs —  83  —  83 
Total $ 495,165  $ 109,117  $ 31,470  $ 635,752 
Liabilities
Securities sold but not yet purchased:
U.S. Treasury securities $ 324,612  $ —  $ —  $ 324,612 
U.S. Agency securities —  — 
Sovereign obligations —  1,609  —  1,609 
Corporate debt and other obligations —  6,199  —  6,199 
Mortgage and other asset-backed securities —  — 
Convertible bonds —  5,873  —  5,873 
Corporate equities 22,187  —  —  22,187 
Securities sold but not yet purchased, at fair value 346,799  13,687  —  360,486 
Derivative contracts:
Futures 296  —  —  296 
TBAs —  56  —  56 
ARS purchase commitments —  —  65  65 
Derivative contracts, total 296  56  65  417 
Total $ 347,095  $ 13,743  $ 65  $ 360,903 
(1) Included in other assets on the condensed consolidated balance sheet.


20


OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2020:
(Expressed in thousands)        
  Fair Value Measurements as of December 31, 2020
  Level 1 Level 2 Level 3 Total
Assets
Deposits with clearing organizations $ 23,991  $ —  $ —  $ 23,991 
Securities owned:
U.S. Treasury securities 448,312  —  —  448,312 
U.S. Agency securities —  24,616  —  24,616 
Sovereign obligations —  367  —  367 
Corporate debt and other obligations —  23,977  —  23,977 
Mortgage and other asset-backed securities —  3,103  —  3,103 
Municipal obligations —  25,190  —  25,190 
Convertible bonds —  17,497  —  17,497 
Corporate equities 36,554  —  —  36,554 
Money markets 200  —  —  200 
Auction rate securities —  —  30,701  30,701 
Securities owned, at fair value 485,066  94,750  30,701  610,517 
Investments (1)
—  4,181  —  4,181 
Derivative contracts:
TBAs —  15  —  15 
Total $ 509,057  $ 98,946  $ 30,701  $ 638,704 
Liabilities
Securities sold but not yet purchased:
U.S. Treasury securities $ 93,261  $ —  $ —  $ 93,261 
U.S. Agency securities —  — 
Sovereign obligations —  623  —  623 
Corporate debt and other obligations —  5,283  —  5,283 
Corporate equities 17,892  —  —  17,892 
Securities sold but not yet purchased, at fair value 111,153  15,018  —  126,171 
Derivative contracts:
Futures 22  —  —  22 
TBAs —  — 
ARS purchase commitments —  —  195  195 
Derivative contracts, total 22  195  220 
Total $ 111,175  $ 15,021  $ 195  $ 126,391 
(1) Included in other assets on the condensed consolidated balance sheet.    














21


OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)

The following tables present changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended March 31, 2021:
(Expressed in thousands)
Level 3 Assets and Liabilities
For the Three Months Ended March 31, 2021
Total Realized
Beginning and Unrealized Purchases Sales and Transfers Ending
Balance
Gains (Losses)(3)(4)
and Issuances Settlements In (Out) Balance
Assets
Auction rate securities (1)
$ 30,701  $ (131) $ 1,875  $ (975) $ —  $ 31,470 
Liabilities
ARS Purchase Commitments (2)
195  —  —  (130) —  65 
(1) Represents auction rate securities that failed in the auction rate market.
(2) Represents the difference in principal and fair value for auction rate securities purchase commitments outstanding at the end of the period.
(3) Included in principal transactions in the condensed consolidated income statement.
(4) Unrealized gains are attributable to assets or liabilities that are still held at the reporting date.

There were no balances or changes in Level 3 assets and liabilities during the three months ended March 31, 2020.

Financial Instruments Not Measured at Fair Value
The table below presents the carrying value, fair value and fair value hierarchy category of certain financial instruments that are not measured at fair value on the condensed consolidated balance sheets. The table below excludes non-financial assets and liabilities (e.g., right-of-use lease assets, lease liabilities, furniture, equipment and leasehold improvements and accrued compensation).
The carrying value of financial instruments not measured at fair value categorized in the fair value hierarchy as Level 1 or Level 2 (e.g., cash and receivables from customers) approximates fair value because of the relatively short-term nature of the underlying assets. The fair value of the Company's senior secured notes, categorized in Level 2 of the fair value hierarchy, is based on quoted prices from the market in which the notes trade.

Assets and liabilities not measured at fair value as of March 31, 2021:
(Expressed in thousands)   Fair Value Measurement: Assets
  Carrying Value Level 1 Level 2 Level 3 Total
Cash $ 28,545  $ 28,545  $ —  $ —  $ 28,545 
Deposits with clearing organization 51,395  51,395  —  —  51,395 
Receivable from brokers, dealers and clearing organizations:
Securities borrowed 109,763  —  109,763  —  109,763 
Receivables from brokers 32,994  —  32,994  —  32,994 
Securities failed to deliver 62,193  —  62,193  —  62,193 
Clearing organizations 28,221  —  28,221  —  28,221 
Other 717  —  717  —  717 
233,888  —  233,888  —  233,888 
Receivable from customers 1,152,499  —  1,152,499  —  1,152,499 
Securities purchased under agreements to resell 25,937  —  25,937  —  25,937 
Notes receivable, net 48,847  —  48,847  —  48,847 
Investments (1)
88,963  —  88,963  —  88,963 
(1) Included in other assets on the condensed consolidated balance sheet.

22


OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)

(Expressed in thousands)   Fair Value Measurement: Liabilities
  Carrying Value Level 1 Level 2 Level 3 Total
Drafts payable $ 12,392  $ 12,392  $ —  $ —  $ 12,392 
Bank call loans 75,100  —  75,100  —  75,100 
Payables to brokers, dealers and clearing organizations:
Securities loaned 257,342  —  257,342  —  257,342 
Payable to brokers 1,336  —  1,336  —  1,336 
Securities failed to receive 38,100  —  38,100  —  38,100 
Other 124,339  —  124,339  —  124,339 
421,117  —  421,117  —  421,117 
Payables to customers 462,450  —  462,450  —  462,450 
Securities sold under agreements to repurchase 7,150  —  7,150  —  7,150 
Senior secured notes 125,000  —  129,375  —  129,375 

Assets and liabilities not measured at fair value as of December 31, 2020:
(Expressed in thousands)   Fair Value Measurement: Assets
  Carrying Value Level 1 Level 2 Level 3 Total
Cash $ 35,424  $ 35,424  $ —  $ —  $ 35,424 
Deposits with clearing organization 59,352  59,352  —  —  59,352 
Receivable from brokers, dealers and clearing organizations:
Securities borrowed 110,932  —  110,932  —  110,932 
Receivables from brokers 30,133  —  30,133  —  30,133 
Securities failed to deliver 17,840  —  17,840  —  17,840 
Clearing organizations 28,955  —  28,955  —  28,955 
Other 15,622  —  15,622  —  15,622 
203,482  —  203,482  —  203,482 
Receivable from customers 1,110,835  —  1,110,835  —  1,110,835 
Notes receivable, net 46,161  —  46,161  —  46,161 
Investments (1)
85,552  —  85,552  —  85,552 
(1) Included in other assets on the condensed consolidated balance sheet.








23


OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)

(Expressed in thousands)   Fair Value Measurement: Liabilities
  Carrying Value Level 1 Level 2 Level 3 Total
Bank call loans $ 82,000  $ —  $ 82,000  $ —  $ 82,000 
Payables to brokers, dealers and clearing organizations:
Securities loaned 249,499  —  249,499  —  249,499 
Payable to brokers 4,102  —  4,102  —  4,102 
Securities failed to receive 6,218  —  6,218  —  6,218 
Other 70  —  70  —  70 
259,889  —  259,889  —  259,889 
Payables to customers 502,807  —  502,807  —  502,807 
Securities sold under agreements to repurchase 342,438  —  342,438  —  342,438 
Senior secured notes 125,000  —  127,033  —  127,033 

Fair Value Option
The Company elected the fair value option for securities sold under agreements to repurchase ("repurchase agreements") and securities purchased under agreements to resell ("reverse repurchase agreements") that do not settle overnight or have an open settlement date. The Company has elected the fair value option for these instruments to reflect more accurately market and economic events in its earnings and to mitigate a potential mismatch in earnings caused by using different measurement attributes (i.e. fair value versus carrying value) for certain assets and liabilities. As of March 31, 2021, the Company did not have any repurchase agreements and reverse repurchase agreements that do not settle overnight or have an open settlement date.
Derivative Instruments and Hedging Activities
The Company transacts, on a limited basis, in exchange traded and over-the-counter derivatives for both asset and liability management as well as for trading and investment purposes. Risks managed using derivative instruments include interest rate risk and, to a lesser extent, foreign exchange risk. All derivative instruments are measured at fair value and are recognized as either assets or liabilities on the condensed consolidated balance sheet.

Foreign exchange hedges
From time to time, the Company also utilizes forward and options contracts to hedge the foreign currency risk associated with compensation obligations to Oppenheimer Israel (OPCO) Ltd. employees denominated in New Israeli Shekel ("NIS"). Such hedges have not been designated as accounting hedges. Unrealized gains and losses on foreign exchange forward contracts are recorded in other assets on the condensed consolidated balance sheet and other income in the condensed consolidated income statement.
Derivatives used for trading and investment purposes
Futures contracts represent commitments to purchase or sell securities or other commodities at a future date and at a specified price. Market risk exists with respect to these instruments. Notional or contractual amounts are used to express the volume of these transactions and do not represent the amounts potentially subject to market risk. The Company uses futures contracts, including U.S. Treasury notes, Federal Funds, general collateral futures and Eurodollar contracts primarily as an economic hedge of interest rate risk associated with government trading activities. Unrealized gains and losses on futures contracts are recorded on the condensed consolidated balance sheet in payable to brokers, dealers and clearing organizations and in the condensed consolidated income statement as principal transactions revenue, net.





24


OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)

To-be-announced securities
The Company also transacts in pass-through mortgage-backed securities eligible to be sold in the TBA market as economic hedges against mortgage-backed securities that it owns or has sold but not yet purchased. TBAs provide for the forward or delayed delivery of the underlying instrument with settlement up to 180 days. The contractual or notional amounts related to these financial instruments reflect the volume of activity and do not reflect the amounts at risk. Net unrealized gains and losses on TBAs are recorded on the condensed consolidated balance sheet in receivable from brokers, dealers and clearing organizations or payable to brokers, dealers and clearing organizations and in the condensed consolidated income statement as principal transactions revenue, net.

The notional amounts and fair values of the Company's derivatives as of March 31, 2021 and December 31, 2020 by product were as follows:
(Expressed in thousands)      
  Fair Value of Derivative Instruments as of March 31, 2021
  Description Notional Fair Value
Assets:
Derivatives not designated as hedging instruments (1)
Other contracts TBAs $ 40,550  $ 83 
$ 40,550  $ 83 
Liabilities:
Derivatives not designated as hedging instruments (1)
Commodity contracts
Futures $ 2,860,000  $ 296 
       Other contracts TBAs 34,884  56 
ARS purchase commitments 435  65 
$ 2,895,319  $ 417 
(1)See "Derivative Instruments and Hedging Activities" above for a description of derivative financial instruments. Such derivative instruments are not subject to master netting agreements, thus the
related amounts are not offset.
(Expressed in thousands)      
  Fair Value of Derivative Instruments as of December 31, 2020
  Description Notional Fair Value
Assets:
Derivatives not designated as hedging instruments (1)
Other contracts TBAs $ 7,970  $ 15 
$ 7,970  $ 15 
Liabilities:
Derivatives not designated as hedging instruments (1)
Commodity contracts
Futures $ 3,440,000  $ 22 
       Other contracts TBAs 7,936 
ARS purchase commitments 1,313  195 
$ 3,449,249  $ 220 
(1)See "Derivative Instruments and Hedging Activities" above for a description of derivative financial instruments. Such derivative instruments are not subject to master netting agreements, thus the related amounts are not offset.
25


OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)

The following table presents the location and fair value amounts of the Company's derivative instruments and their effect in the condensed consolidated income statements for the three months ended March 31, 2021 and 2020:
(Expressed in thousands)      
  The Effect of Derivative Instruments in the Income Statement
  For the Three Months Ended March 31, 2021
    Recognized in Income on Derivatives
(pre-tax)
Types Description Location Net Gain
Commodity contracts Futures Principal transactions revenue $ 1,020 
Other contracts TBAs Principal transactions revenue 37 
ARS purchase commitments Principal transactions revenue — 
$ 1,057 
(Expressed in thousands)      
  The Effect of Derivative Instruments in the Income Statement
  For the Three Months Ended March 31, 2020
    Recognized in Income on Derivatives
(pre-tax)
Types Description Location Net Gain (Loss)
Commodity contracts Futures Principal transactions revenue $ (8,093)
Other contracts Foreign exchange forward contracts Other revenue
TBAs Principal transactions revenue (12)
ARS purchase commitments Principal transactions revenue 136 
$ (7,967)
9.    Collateralized transactions
The Company enters into collateralized borrowing and lending transactions in order to meet customers' needs and earn interest rate spreads, obtain securities for settlement and finance trading inventory positions. Under these transactions, the Company either receives or provides collateral, including U.S. Government and Agency, asset-backed, corporate debt, equity, and non-U.S. Government and Agency securities.
The Company obtains short-term borrowings primarily through bank call loans. Bank call loans are generally payable on demand and bear interest at various rates. As of March 31, 2021, the outstanding balance of bank call loans was $75.1 million ($82.0 million as of December 31, 2020). Such loans were collateralized by the Firm's securities and customer securities with market values of approximately $45.4 million and $44.5 million, respectively, with commercial banks.
As of March 31, 2021, the Company had approximately $1.6 billion of customer securities under customer margin loans that are available to be pledged, of which the Company has re-pledged approximately $216.9 million under securities loan agreements.
As of March 31, 2021, the Company had pledged $284.1 million of customer securities directly with the Options Clearing Corporation to secure obligations and margin requirements under option contracts written by customers.
As of March 31, 2021, the Company had no outstanding letters of credit.

The Company enters into reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions to, among other things, acquire securities to cover short positions and settle other securities obligations, to accommodate customers' needs and to finance the Company's inventory positions. Except as described below, repurchase and reverse repurchase agreements, principally involving U.S. Government and Agency securities, are carried at amounts at which the securities subsequently will be resold or reacquired as specified in the respective agreements and include accrued interest.


26


OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)

Repurchase agreements and reverse repurchase agreements are presented on a net-by-counterparty basis, when the repurchase agreements and reverse repurchase agreements are executed with the same counterparty, have the same explicit settlement date, are executed in accordance with a master netting arrangement, the securities underlying the repurchase agreements and reverse repurchase agreements exist in "book entry" form and certain other requirements are met.
The following table presents a disaggregation of the gross obligation by the class of collateral pledged and the remaining contractual maturity of the repurchase agreements and securities loaned transactions as of March 31, 2021:
(Expressed in thousands)
Overnight and Open
Repurchase agreements:
U.S. Government and Agency securities $ 301,882 
Securities loaned:
Equity securities 257,342 
Gross amount of recognized liabilities for repurchase agreements and securities loaned $ 559,224 
The following tables present the gross amounts and the offsetting amounts of reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions as of March 31, 2021 and December 31, 2020:
As of March 31, 2021
 (Expressed in thousands)
      Gross Amounts Not Offset
on the Balance Sheet
 
  Gross
Amounts of
Recognized
Assets
Gross
Amounts
Offset on the
Balance Sheet
Net Amounts
of Assets
Presented on
the Balance
Sheet
Financial
Instruments
Cash
Collateral
Received
Net Amount
Reverse repurchase agreements $ 320,669  $ (294,732) $ 25,937  $ (25,937) $ —  $ — 
Securities borrowed (1)
109,763  —  109,763  (107,957) —  1,806 
Total $ 430,432  $ (294,732) $ 135,700  $ (133,894) $ —  $ 1,806 
(1)Included in receivable from brokers, dealers and clearing organizations on the condensed
consolidated balance sheet.
        Gross Amounts Not Offset
on the Balance Sheet
 
  Gross
Amounts of
Recognized
Liabilities
Gross
Amounts
Offset on the Balance Sheet
Net Amounts
of Liabilities
Presented on
the Balance
Sheet
Financial
Instruments
Cash
Collateral
Pledged
Net Amount
Repurchase agreements $ 301,882  $ (294,732) $ 7,150  $ —  $ —  $ 7,150 
Securities loaned (2)
257,342  —  257,342  (253,320) —  4,022 
Total $ 559,224  $ (294,732) $ 264,492  $ (253,320) $ —  $ 11,172 
(2)Included in payable to brokers, dealers and clearing organizations on the condensed consolidated
balance sheet.







27


OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)

As of December 31, 2020
(Expressed in thousands) 
      Gross Amounts Not Offset
on the Balance Sheet
 
  Gross
Amounts of
Recognized
Assets
Gross
Amounts
Offset on the Balance Sheet
Net Amounts
of Assets
Presented on
the Balance
Sheet
Financial
Instruments
Cash
Collateral
Received
Net Amount
Reverse repurchase agreements $ 88,349  $ (88,349) $ —  $ —  $ —  $ — 
Securities borrowed (1)
110,932  —  110,932  (109,922) —  1,010 
Total $ 199,281  $ (88,349) $ 110,932  $ (109,922) $ —  $ 1,010 
(1)Included in receivable from brokers, dealers and clearing organizations on the condensed
consolidated balance sheet.
        Gross Amounts Not Offset
on the Balance Sheet
 
  Gross
Amounts of
Recognized
Liabilities
Gross
Amounts
Offset on the Balance Sheet
Net Amounts
of Liabilities
Presented on
the Balance
Sheet
Financial
Instruments
Cash
Collateral
Pledged
Net Amount
Repurchase agreements $ 430,787  $ (88,349) $ 342,438  $ (340,632) $ —  $ 1,806 
Securities loaned (2)
249,499  —  249,499  (242,318) —  7,181 
Total $ 680,286  $ (88,349) $ 591,937  $ (582,950) $ —  $ 8,987 
(2)Included in payable to brokers, dealers and clearing organizations on the condensed consolidated
balance sheet.

The Company elected the fair value option for those repurchase agreements and reverse repurchase agreements that do not settle overnight or have an open settlement date. As of March 31, 2021, the Company did not have any repurchase agreements and reverse repurchase agreements that do not settle overnight or have an open settlement date.
The Company receives collateral in connection with securities borrowed and reverse repurchase agreement transactions and customer margin loans. Under many agreements, the Company is permitted to sell or re-pledge the securities received (e.g., use the securities to enter into securities lending transactions, or deliver to counterparties to cover short positions). As of March 31, 2021, the fair value of securities received as collateral under securities borrowed transactions and reverse repurchase agreements was $108.1 million ($108.0 million as of December 31, 2020) and $328.6 million ($88.3 million as of December 31, 2020), respectively, of which the Company has sold and re-pledged approximately $35.5 million ($36.2 million as of December 31, 2020) under securities loaned transactions and $328.6 million under repurchase agreements ($88.3 million as of December 31, 2020).
The Company pledges certain of its securities owned for securities lending and repurchase agreements and to collateralize bank call loan transactions. The carrying value of pledged securities owned that can be sold or re-pledged by the counterparty was $336.5 million, as presented on the face of the condensed consolidated balance sheet as of March 31, 2021 ($440.5 million as of December 31, 2020).
The Company manages credit exposure arising from repurchase and reverse repurchase agreements by, in appropriate circumstances, entering into master netting agreements and collateral arrangements with counterparties that provide the Company, in the event of a customer default, the right to liquidate securities and the right to offset a counterparty's rights and obligations. The Company manages market risk of repurchase agreements and securities loaned by monitoring the market value of collateral held and the market value of securities receivable from others. It is the Company's policy to request and obtain additional collateral when exposure to loss exists. In the event the counterparty is unable to meet its contractual obligation to return the securities, the Company may be exposed to off-balance sheet risk of acquiring securities at prevailing market prices.
28


OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)

Credit Concentrations
Credit concentrations may arise from trading, investing, underwriting and financing activities and may be impacted by changes in economic, industry or political factors. In the normal course of business, the Company may be exposed to credit risk in the event customers, counterparties including other brokers and dealers, issuers, banks, depositories or clearing organizations are unable to fulfill their contractual obligations. The Company seeks to mitigate these risks by actively monitoring exposures and obtaining collateral as deemed appropriate. Included in receivable from brokers, dealers and clearing organizations as of March 31, 2021 were receivables from three major U.S. broker-dealers totaling approximately $72.6 million.
The Company is obligated to settle transactions with brokers and other financial institutions even if its clients fail to meet their obligations to the Company. Clients are required to complete their transactions on the settlement date, generally one to two business days after the trade date. If clients do not fulfill their contractual obligations, the Company may incur losses. The Company has clearing/participating arrangements with the National Securities Clearing Corporation, the Fixed Income Clearing Corporation ("FICC"), R.J. O'Brien & Associates (commodities transactions), Mortgage-Backed Securities Division (a division of FICC) and others. With respect to its business in reverse repurchase and repurchase agreements, substantially all open contracts as of March 31, 2021 were with the FICC. In addition, the Company clears its non-U.S. international equities business carried on by Oppenheimer Europe Ltd. through Global Prime Partners, Ltd. The clearing organizations have the right to charge the Company for losses that result from a client's failure to fulfill its contractual obligations. Accordingly, the Company has credit exposures with these clearing brokers. The clearing brokers can re-hypothecate the securities held on behalf of the Company. As the right to charge the Company has no maximum amount and applies to all trades executed through the clearing brokers, the Company believes there is no maximum amount assignable to this right. As of March 31, 2021, the Company had recorded no liabilities with regard to this right. The Company's policy is to monitor the credit standing of the clearing brokers and banks with which it conducts business.

10.    Variable interest entities ("VIEs")
The Company's policy is to consolidate all subsidiaries in which it has a controlling financial interest, as well as any VIEs where the Company is deemed to be the primary beneficiary when it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb significant losses or the right to receive benefits that could potentially be significant to the VIE.
The Company serves as general partner of hedge funds and private equity funds that were established for the purpose of providing investment alternatives to both its institutional and qualified retail clients. The Company holds variable interests in these funds as a result of its right to receive management and incentive fees. The Company's investment in and additional capital commitments to these hedge funds and private equity funds are also considered variable interests. The Company's additional capital commitments are subject to call at a later date and are limited to the amount committed.
The Company assesses whether it is the primary beneficiary of the hedge funds and private equity funds in which it holds a variable interest in the form of general and limited partner interests. In each instance, the Company has determined that it is not the primary beneficiary and therefore need not consolidate the hedge funds or private equity funds. The subsidiaries' general and limited partnership interests, additional capital commitments, and management fees receivable represent its maximum exposure to loss. The subsidiaries' general partnership and limited partnership interests and management fees receivable are included in other assets on the condensed consolidated balance sheet.
In addition, the Company has variable interests as a sponsor of two Special Purpose Acquisition Companies ("SPAC”), that are seeking to effect a transaction which could be in the form of a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.
The following tables set forth the total VIE assets, the carrying value of the subsidiaries' variable interests, and the Company's maximum exposure to loss in Company-sponsored non-consolidated VIEs in which the Company holds variable interests and other non-consolidated VIEs in which the Company holds variable interests as of March 31, 2021 and December 31, 2020:



29


OPPENHEIMER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)

(Expressed in thousands)          
  As of March 31, 2021
 
Total
VIE Assets (1)
Carrying Value of the
Company's Variable Interest
Capital
Commitments
Maximum
Exposure
to Loss in
Non-consolidated
VIEs
  Assets Liabilities
Hedge funds $ 546,555  $ —  $ —  $ —  $ — 
Special Purpose Acquisition Companies 1,365  —  —  —  — 
Total $ 547,920  $ —  $ —  $ —  $ — 
(1) Represents the total assets of the VIEs and does not represent the Company's interests in the VIEs.
(Expressed in thousands)