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LPL Financial Announces Fourth Quarter and Full Year 2022 Results

LPL Financial Holdings, Inc.
LPL Financial Holdings, Inc.

Fourth Quarter 2022 Key Financial Results

  • Net Income was $319 million, translating to diluted earnings per share ("EPS") of $3.95, up 199% from a year ago

  • EPS prior to amortization of intangible assets and acquisition costs* increased 158% year-over-year to $4.21

    • Gross profit* increased 51% year-over-year to $972 million

    • Core G&A* increased 9% year-over-year to $327 million

    • EBITDA* increased 137% year-over-year to $533 million

Fourth Quarter 2022 Key Business Results

  • Total advisory and brokerage assets decreased 8% year-over-year to $1.11 trillion

    • Advisory assets decreased 9% year-over-year to $583 billion

    • Advisory assets as a percentage of total assets decreased to 52.5%, down from 53.3% a year ago

  • Total organic net new assets were $21 billion, representing 8% annualized growth

    • Organic net new advisory assets were $13 billion, representing 9% annualized growth

    • Organic net new brokerage assets were $9 billion, representing 7% annualized growth

  • Recruited assets(1) were $15 billion

    • Recruited assets for the year were $82 billion, down approximately 8% from a year ago

  • LPL Services Group had annualized revenue of $36 million in Q4, up 27% from a year ago

    • Services Group subscriptions were 4,479 at the end of Q4, up 1,457 year-over-year

  • Advisor count(2) was 21,275, up 231 sequentially and 1,399 year-over-year

  • Total client cash balances were $64 billion, a decrease of $3 billion sequentially and an increase of $7 billion year-over-year

    • Client cash balances as a percentage of total assets were 5.8%, down from 6.4% in the prior quarter, and up from 4.7% a year ago

ANNUNCIO PUBBLICITARIO

Fourth Quarter 2022 Key Capital and Liquidity Results

  • Corporate cash(3) was $459 million

  • Leverage ratio(4) was 1.39x

  • Share repurchases were $150 million and dividends paid of $20 million

Full Year 2022 Key Financial and Business Results

  • Net Income was $846 million, translating to diluted EPS of $10.40, up 85% from a year ago

  • EPS prior to amortization of intangible assets and acquisition costs* increased 64% year-over-year to $11.52

    • Gross profit* increased 30% year-over-year to $3.19 billion

    • Core G&A* increased 13% year-over-year to $1.19 billion

    • EBITDA* increased 63% year-over-year to $1.53 billion

  • Total organic net new assets were $96 billion, representing an 8% growth rate, down from 13% in 2021

  • Share repurchases were $325 million and dividends paid of $80 million

Key Updates

  • Enterprises:

    • Commerce Bank: Announced an agreement with Commerce Bank to transition support of Commerce Financial Advisors to LPL's Institution Services platform, expected to onboard around mid-year. Commerce supports ~30 financial advisors who collectively serve ~$4.4 billion of brokerage and advisory assets**.

  • M&A:

    • Boenning & Scattergood: In January 2023, closed on the acquisition of the Private Client Group business of Boenning & Scattergood, a firm with ~30 financial advisors who serve ~$4 billion of brokerage and advisory assets

    • Financial Resources Group Investment Services ("FRGIS"): In January 2023, closed on the acquisition of FRGIS, an LPL branch office supporting ~800 financial advisors and 85 financial institutions, serving ~$40 billion of brokerage and advisory assets

  • Debt Rating: Moody's upgraded LPL to an investment grade rating (Baa3) on November 14, 2022

  • Core G&A*:

    • 2022 Core G&A* was $1,192 million, which translates to a 13% growth rate year-over-year, and was within our outlook range of $1,185 million to $1,195 million

    • In 2023, the environment is creating an opportunity to accelerate investments to advance our strategic priorities. Accordingly, we plan to grow 2023 Core G&A* at a similar rate to 2022. Our 2023 Core G&A* outlook range is ~12% to ~15% year-over-year growth, or $1,335 million to $1,370 million

  • Capital Management:

    • Share repurchases: increased Q4 2022 repurchases to $150 million and plan to further increase in Q1 2023 to $250 million

    • Dividend: increasing quarterly cash dividend by 20% to $0.30 per share beginning in Q1 2023

SAN DIEGO, Feb. 02, 2023 (GLOBE NEWSWIRE) -- LPL Financial Holdings Inc. (Nasdaq: LPLA) (the “Company”) today announced results for its fourth quarter ended December 31, 2022, reporting net income of $319 million, or $3.95 per share. This compares with $108 million, or $1.32 per share, in the fourth quarter of 2021 and $232 million, or $2.86 per share, in the prior quarter.

"In 2022, we remained focused on our mission of taking care of our advisors, so they can take care of their clients,” said Dan Arnold, President and CEO. “This focus drove continued business growth, market share gains, and solid financial results. As we look ahead, we continue to strive to be the best at empowering advisors – to deliver great advice to their clients and to be great operators of their businesses.”

“Looking at 2022, we are proud of what we accomplished within our framework for driving long-term shareholder value,” said Matt Audette, CFO. “We continued to grow assets organically in both our traditional and new markets, successfully onboarded new enterprise clients, announced two strategic acquisitions, and developed our new liquidity & succession capability, including closing on our first few transactions. Going forward, our business momentum and financial strength position us well to continue creating long-term shareholder value.”

*See the Non-GAAP Financial Measures section and the endnotes to this release for further details about these non-GAAP financial measures.
**Estimates are based on prior business reported by Commerce, which has not been independently and fully verified by LPL Financial.

Dividend Declaration

The Company's Board of Directors declared a $0.30 per share dividend to be paid on March 28, 2023 to all stockholders of record as of March 14, 2023.

Conference Call and Additional Information

The Company will hold a conference call to discuss its results at 5:00 p.m. ET on Thursday, February 2. The conference call will be accessible at investor.lpl.com/events, with a replay available until February 23.

Contacts

Investor Relations
investor.relations@lplfinancial.com
(617) 897-4574

Media Relations
media.relations@lplfinancial.com
(980) 321-1232

About LPL Financial

LPL Financial Holdings Inc. (Nasdaq: LPLA) was founded on the principle that the firm should work for the advisor, and not the other way around. Today, LPL is a leader in the markets we serve(5), serving more than 21,000 financial advisors, including advisors at approximately 1,100 enterprises and at approximately 500 registered investment advisor ("RIA") firms nationwide. We are steadfast in our commitment to the advisor-mediated model and the belief that investors deserve access to personalized guidance from a financial advisor. We believe advisors should have the freedom to choose the business model, services and technology they need and to manage their client relationships. Simply put, we take care of our advisors, so they can take care of their clients.

LPL and its affiliated companies provide financial services only from the United States.

Securities and Advisory services offered through LPL Financial LLC ("LPL Financial"), an SEC-registered broker-dealer and investment advisor. Member FINRA/SIPC. We routinely disclose information that may be important to shareholders in the "Investor Relations" or "Press Releases" section of our website.

Forward-Looking Statements

This press release contains statements regarding:

  • the amount and timing of the onboarding of acquired or recruited brokerage and advisory assets;

  • the Company's future financial and operating results, growth, priorities and business strategies, including forecasts and statements relating to future expenses (including 2023 Core G&A* outlook); and

  • future capabilities, future advisor service experience, future investments and capital deployment, including share repurchase activity and dividends, if any, and long-term shareholder value.

These and any other statements that are not related to present facts or current conditions, or that are not purely historical, constitute forward-looking statements. They reflect the Company's expectations and objectives as of February 2, 2023 and are not guarantees that expectations or objectives expressed or implied will be achieved. The achievement of such expectations and objectives involves risks and uncertainties that may cause actual results, levels of activity or the timing of events to differ materially from those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include:

  • difficulties and delays in onboarding the assets of acquired or recruited advisors;

  • disruptions in the businesses of the Company that could make it more difficult to maintain relationships with advisors and their clients;

  • the choice by clients of acquired or recruited advisors not to open brokerage and/or advisory accounts at the Company;

  • changes in general economic and financial market conditions, including retail investor sentiment;

  • changes in interest rates and fees payable by banks participating in the Company's client cash programs, including the Company's strategy and success in managing client cash program fees;

  • changes in the growth and profitability of the Company's fee-based offerings;

  • fluctuations in the levels of advisory and brokerage assets, including net new assets, and the related impact on revenues;

  • effects of competition in the financial services industry and the success of the Company in attracting and retaining financial advisors and enterprises;

  • whether the retail investors served by newly-recruited advisors choose to move their respective assets to new accounts at the Company;

  • the effect of current, pending and future legislation, regulation and regulatory actions, including disciplinary actions imposed by federal and state regulators and self-regulatory organizations;

  • the costs of settling and remediating issues related to regulatory matters or legal proceedings, including actual costs of reimbursing customers for losses in excess of our reserves;

  • changes made to the Company’s services and pricing, and the effect that such changes may have on the Company’s gross profit streams and costs;

  • the execution of the Company's plans and its success in realizing the synergies, expense savings, service improvements and efficiencies expected to result from its initiatives, acquisitions and programs; and

  • the other factors set forth in the Company's most recent Annual Report on Form 10-K, as may be amended or updated in the Company's Quarterly Reports on Form 10-Q or other filings with the Securities and Exchange Commission.

Except as required by law, the Company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this earnings release, and you should not rely on statements contained herein as representing the Company's view as of any date subsequent to the date of this press release.


LPL Financial Holdings Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)

 

Three Months Ended

 

Three Months Ended

 

 

December 31,

September 30,

 

December 31,

 

 

 

2022

 

2022

 

Change

2021

Change

REVENUE

 

 

 

 

 

Advisory

$

902,440

$

923,766

 

(2

%)

$

997,338

(10

%)

Asset-based:

 

 

 

 

 

Client cash

 

419,215

 

294,993

 

42

%

 

82,109

n/m

 

Other asset-based

 

191,797

 

194,270

 

(1

%)

 

219,931

(13

%)

 Total asset-based

 

611,012

 

489,263

 

25

%

 

302,040

102

%

Commission:

 

 

 

 

 

Trailing

 

311,194

 

315,087

 

(1

%)

 

364,455

(15

%)

Sales-based

 

271,089

 

269,893

 

%

 

248,382

9

%

 Total commission

 

582,283

 

584,980

 

%

 

612,837

(5

%)

Service and fee

 

120,022

 

121,745

 

(1

%)

 

110,385

9

%

Transaction

 

46,790

 

43,328

 

8

%

 

39,306

19

%

Interest income, net

 

37,168

 

22,092

 

68

%

 

7,780

n/m

 

Other

 

33,472

 

(22,116

)

n/m

 

 

24,506

37

%

 Total revenue

 

2,333,187

 

2,163,058

 

8

%

 

2,094,192

11

%

EXPENSE

 

 

 

 

 

Advisory and commission

 

1,341,743

 

1,304,528

 

3

%

 

1,431,157

(6

%)

Compensation and benefits

 

223,952

 

208,051

 

8

%

 

209,630

7

%

Promotional

 

80,455

 

94,510

 

(15

%)

 

87,743

(8

%)

Occupancy and equipment

 

58,144

 

54,636

 

6

%

 

47,800

22

%

Depreciation and amortization

 

54,241

 

51,669

 

5

%

 

40,816

33

%

Interest expense on borrowings

 

37,082

 

33,186

 

12

%

 

27,121

37

%

Amortization of other intangibles

 

22,542

 

22,654

 

%

 

20,373

11

%

Professional services

 

19,336

 

16,871

 

15

%

 

18,384

5

%

Brokerage, clearing and exchange

 

19,251

 

20,850

 

(8

%)

 

20,372

(6

%)

Communications and data processing

 

18,525

 

17,812

 

4

%

 

15,549

19

%

Other

 

38,697

 

31,557

 

23

%

 

38,688

%

 Total expense

 

1,913,968

 

1,856,324

 

3

%

 

1,957,633

(2

%)

INCOME BEFORE PROVISION FOR INCOME TAXES

 

419,219

 

306,734

 

37

%

 

136,559

n/m

 

PROVISION FOR INCOME TAXES

 

100,137

 

74,403

 

35

%

 

28,478

n/m

 

NET INCOME

$

319,082

$

232,331

 

37

%

$

108,081

195

%

EARNINGS PER SHARE

 

 

 

 

 

Earnings per share, basic

$

4.01

$

2.91

 

38

%

$

1.35

197

%

Earnings per share, diluted

$

3.95

$

2.86

 

38

%

$

1.32

199

%

Weighted-average shares outstanding, basic

 

79,483

 

79,805

 

%

 

80,064

(1

%)

Weighted-average shares outstanding, diluted

 

80,875

 

81,250

 

%

 

81,744

(1

%)


LPL Financial Holdings Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)

 

Years Ended

 

 

December 31,

 

 

 

2022

 

 

2021

Change

REVENUE

 

 

 

Advisory

$

3,875,154

 

$

3,525,430

10

%

Commission:

 

 

 

Trailing

 

1,292,358

 

 

1,404,628

(8

%)

Sales-based

 

1,033,806

 

 

974,055

6

%

 Total commission

 

2,326,164

 

 

2,378,683

(2

%)

Asset-based:

 

 

 

Client cash

 

953,624

 

 

360,847

164

%

Other asset-based

 

806,649

 

 

787,220

2

%

 Total asset-based

 

1,760,273

 

 

1,148,067

53

%

Service and fee

 

467,381

 

 

411,761

14

%

Transaction

 

181,260

 

 

156,336

16

%

Interest income, net

 

77,126

 

 

28,577

170

%

Other

 

(86,533

)

 

71,976

n/m

 

 Total revenue

 

8,600,825

 

 

7,720,830

11

%

EXPENSE

 

 

 

Advisory and commission

 

5,324,827

 

 

5,180,090

3

%

Compensation and benefits

 

820,736

 

 

741,003

11

%

Promotional

 

339,994

 

 

302,285

12

%

Occupancy and equipment

 

219,798

 

 

185,531

18

%

Depreciation and amortization

 

199,817

 

 

151,428

32

%

Interest expense on borrowings

 

126,234

 

 

104,414

21

%

Amortization of other intangibles

 

87,560

 

 

79,260

10

%

Brokerage, clearing and exchange

 

86,063

 

 

86,023

%

Professional services

 

72,519

 

 

73,231

(1

%)

Communications and data processing

 

67,687

 

 

60,296

12

%

Loss on extinguishment of debt

 

 

 

24,400

(100

%)

Other

 

143,937

 

 

131,540

9

%

 Total expense

 

7,489,172

 

 

7,119,501

5

%

INCOME BEFORE PROVISION FOR INCOME TAXES

 

1,111,653

 

 

601,329

85

%

PROVISION FOR INCOME TAXES

 

265,951

 

 

141,463

88

%

NET INCOME

$

845,702

 

$

459,866

84

%

EARNINGS PER SHARE

 

 

 

Earnings per share, basic

$

10.60

 

$

5.75

84

%

Earnings per share, diluted

$

10.40

 

$

5.63

85

%

Weighted-average shares outstanding, basic

 

79,801

 

 

80,002

%

Weighted-average shares outstanding, diluted

 

81,285

 

 

81,742

(1

%)


LPL Financial Holdings Inc.
Consolidated Statements of Financial Condition
(In thousands, except share data)
(Unaudited)

 

December 31, 2022

September 30, 2022

December 31, 2021

ASSETS

Cash and equivalents

$

847,519

 

$

1,219,418

 

$

495,246

 

Cash and equivalents segregated under federal or other regulations

 

2,199,362

 

 

2,268,090

 

 

1,496,463

 

Restricted cash

 

90,389

 

 

91,712

 

 

80,655

 

Receivables from clients, net

 

561,569

 

 

635,380

 

 

578,889

 

Receivables from brokers, dealers and clearing organizations

 

56,276

 

 

120,211

 

 

102,503

 

Advisor loans, net

 

1,123,004

 

 

1,022,546

 

 

963,869

 

Other receivables, net

 

677,766

 

 

645,731

 

 

581,483

 

Investment securities ($36,758, $45,093 and $39,274 at fair value at December 31, 2022, September 30, 2022 and December 31, 2021, respectively)

 

52,610

 

 

62,177

 

 

49,192

 

Property and equipment, net

 

780,357

 

 

751,478

 

 

658,841

 

Goodwill

 

1,642,468

 

 

1,642,468

 

 

1,642,443

 

Other intangibles, net

 

427,676

 

 

427,791

 

 

455,028

 

Other assets

 

1,023,230

 

 

808,781

 

 

886,988

 

Total assets

$

9,482,226

 

$

9,695,783

 

$

7,991,600

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES:

 

 

 

Client payables

$

2,694,929

 

$

3,275,860

 

$

1,712,224

 

Payables to brokers, dealers and clearing organizations

 

147,752

 

 

168,485

 

 

170,119

 

Accrued advisory and commission expenses payable

 

203,292

 

 

194,480

 

 

222,379

 

Corporate debt and other borrowings, net

 

2,717,444

 

 

2,719,096

 

 

2,814,044

 

Accounts payable and accrued liabilities

 

448,630

 

 

392,810

 

 

384,025

 

Other liabilities

 

1,102,627

 

 

945,540

 

 

1,018,276

 

Total liabilities

 

7,314,674

 

 

7,696,271

 

 

6,321,067

 

STOCKHOLDERS’ EQUITY:

 

 

 

Common stock, $0.001 par value; 600,000,000 shares authorized; 129,655,843 shares, 129,543,504 shares and 128,758,086 shares issued at December 31, 2022, September 30, 2022 and December 31, 2021, respectively

 

130

 

 

129

 

 

129

 

Additional paid-in capital

 

1,912,886

 

 

1,896,433

 

 

1,841,402

 

Treasury stock, at cost — 50,407,844 shares, 49,784,348 shares and 48,768,145 shares at December 31, 2022, September 30, 2022 and December 31, 2021, respectively

 

(2,846,536

)

 

(2,696,591

)

 

(2,498,600

)

Retained earnings

 

3,101,072

 

 

2,799,541

 

 

2,327,602

 

Total stockholders’ equity

 

2,167,552

 

 

1,999,512

 

 

1,670,533

 

Total liabilities and stockholders’ equity

$

9,482,226

 

$

9,695,783

 

$

7,991,600

 


LPL Financial Holdings Inc.
Management's Statements of Operations
(In thousands, except per share data)
(Unaudited)

Certain information in this release is presented as reviewed by the Company’s management and includes information derived from the Company’s unaudited consolidated statements of income, non-GAAP financial measures and operational and performance metrics. For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures" in this release.

 

Quarterly Results

 

Q4 2022

Q3 2022

Change

Q4 2021

Change

Gross Profit(6)

 

 

 

 

 

Advisory

$

902,440

 

$

923,766

 

(2

%)

$

997,338

 

(10

%)

Trailing commissions

 

311,194

 

 

315,087

 

(1

%)

 

364,455

 

(15

%)

Sales-based commissions

 

271,089

 

 

269,893

 

%

 

248,382

 

9

%

Advisory fees and commissions

 

1,484,723

 

 

1,508,746

 

(2

%)

 

1,610,175

 

(8

%)

Production-based payout(7)

 

(1,313,026

)

 

(1,326,331

)

(1

%)

 

(1,410,458

)

(7

%)

Advisory fees and commissions, net of payout

 

171,697

 

 

182,415

 

(6

%)

 

199,717

 

(14

%)

Client cash(8)

 

439,181

 

 

303,681

 

45

%

 

82,455

 

n/m

 

Other asset-based(9)

 

191,797

 

 

194,270

 

(1

%)

 

219,927

 

(13

%)

Service and fee

 

120,022

 

 

121,745

 

(1

%)

 

110,385

 

9

%

Transaction

 

46,790

 

 

43,328

 

8

%

 

39,306

 

19

%

Interest income and other, net(10)

 

21,957

 

 

13,091

 

68

%

 

11,245

 

95

%

Total net advisory fees and commissions and attachment revenue

 

991,444

 

 

858,530

 

15

%

 

663,035

 

50

%

Brokerage, clearing and exchange expense

 

(19,251

)

 

(20,850

)

(8

%)

 

(20,372

)

(6

%)

Gross Profit(6)

 

972,193

 

 

837,680

 

16

%

 

642,663

 

51

%

 

 

 

 

 

 

G&A Expense

 

 

 

 

 

Core G&A(11)

 

327,040

 

 

298,026

 

10

%

 

299,401

 

9

%

Regulatory charges

 

9,325

 

 

7,847

 

19

%

 

8,442

 

10

%

Promotional (ongoing)(12)(13)

 

84,077

 

 

98,667

 

(15

%)

 

86,071

 

(2

%)

Acquisition costs(13)

 

6,435

 

 

7,498

 

(14

%)

 

14,291

 

(55

%)

Employee share-based compensation

 

12,232

 

 

11,399

 

7

%

 

9,589

 

28

%

Total G&A

 

439,109

 

 

423,437

 

4

%

 

417,794

 

5

%

EBITDA(14)

 

533,084

 

 

414,243

 

29

%

 

224,869

 

137

%

Depreciation and amortization

 

54,241

 

 

51,669

 

5

%

 

40,816

 

33

%

Amortization of other intangibles

 

22,542

 

 

22,654

 

%

 

20,373

 

11

%

Interest expense on borrowings

 

37,082

 

 

33,186

 

12

%

 

27,121

 

37

%

INCOME BEFORE PROVISION FOR INCOME TAXES

 

419,219

 

 

306,734

 

37

%

 

136,559

 

n/m

 

PROVISION FOR INCOME TAXES

 

100,137

 

 

74,403

 

35

%

 

28,478

 

n/m

 

NET INCOME

$

319,082

 

$

232,331

 

37

%

$

108,081

 

195

%

Earnings per share, diluted

$

3.95

 

$

2.86

 

38

%

$

1.32

 

199

%

Weighted-average shares outstanding, diluted

 

80,875

 

 

81,250

 

%

 

81,744

 

(1

%)

EPS prior to amortization of intangible assets and acquisition costs(15)

$

4.21

 

$

3.13

 

35

%

$

1.63

 

158

%


LPL Financial Holdings Inc.
Operating Metrics
(Dollars in billions, except where noted)
(Unaudited)

 

Q4 2022

Q3 2022

Change

Q4 2021

Change

Market Drivers

 

 

 

 

 

S&P 500 Index (end of period)

 

3,840

 

 

3,586

 

7%

 

4,766

 

(19%)

Russell 2000 Index (end of period)

 

1,761

 

 

1,665

 

6%

 

2,245

 

(22%)

Fed Funds daily effective rate (average bps)

 

366

 

 

219

 

147bps

 

8

 

358bps

 

 

 

 

 

 

Advisory and Brokerage Assets(16)

 

 

 

 

 

Advisory assets

$

583.1

 

$

542.6

 

7%

$

643.2

 

(9%)

Brokerage assets

 

527.7

 

 

495.8

 

6%

 

563.2

 

(6%)

Total Advisory and Brokerage Assets

$

1,110.8

 

$

1,038.4

 

7%

$

1,206.4

 

(8%)

Advisory as a % of Total Advisory and Brokerage Assets

 

52.5

%

 

52.3

%

20bps

 

53.3

%

(80bps)

 

 

 

 

 

 

Assets by Platform

 

 

 

 

 

Corporate advisory assets(17)

$

389.1

 

$

361.6

 

8%

$

429.6

 

(9%)

Independent RIA advisory assets(17)

 

194.0

 

 

181.0

 

7%

 

213.6

 

(9%)

Brokerage assets

 

527.7

 

 

495.8

 

6%

 

563.2

 

(6%)

Total Advisory and Brokerage Assets

$

1,110.8

 

$

1,038.4

 

7%

$

1,206.4

 

(8%)

 

 

 

 

 

 

Centrally Managed Assets

 

 

 

 

 

Centrally managed assets(18)

$

89.2

 

$

83.0

 

7%

$

96.1

 

(7%)

Centrally Managed as a % of Total Advisory Assets

 

15.3

%

 

15.3

%

—bps

 

14.9

%

40bps


LPL Financial Holdings Inc.
Operating Metrics
(Dollars in billions, except where noted)
(Unaudited)

 

Q4 2022

Q3 2022

Change

Q4 2021

Change

Net New Assets (NNA)(19)

 

 

 

 

 

Net new advisory assets

$

12.6

 

$

11.0

 

n/m

$

24.2

 

n/m

Net new brokerage assets

 

8.6

 

 

8.9

 

n/m

 

2.0

 

n/m

Total Net New Assets

$

21.3

 

$

19.9

 

n/m

$

26.2

 

n/m

 

 

 

 

 

 

Organic Net New Assets

 

 

 

 

 

Organic net new advisory assets

$

12.6

 

$

11.0

 

n/m

$

24.2

 

n/m

Organic net new brokerage assets

 

8.6

 

 

8.9

 

n/m

 

2.0

 

n/m

Total Organic Net New Assets

$

21.3

 

$

19.9

 

n/m

$

26.2

 

n/m

 

 

 

 

 

 

Net brokerage to advisory conversions(20)

$

1.5

 

$

1.7

 

n/m

$

3.4

 

n/m

Organic advisory NNA annualized growth(21)

 

9.3

%

 

7.9

%

n/m

 

16.3

%

n/m

Total organic NNA annualized growth(21)

 

8.2

%

 

7.5

%

n/m

 

9.2

%

n/m

 

 

 

 

 

 

Net New Advisory Assets(19)

 

 

 

 

 

Corporate RIA net new advisory assets

$

8.4

 

$

7.1

 

n/m

$

17.0

 

n/m

Independent RIA net new advisory assets

 

4.3

 

 

3.9

 

n/m

 

7.2

 

n/m

Total Net New Advisory Assets

$

12.6

 

$

11.0

 

n/m

$

24.2

 

n/m

Centrally managed net new advisory assets(19)

$

1.3

 

$

2.2

 

n/m

$

4.4

 

n/m

 

 

 

 

 

 

Client Cash Balances(22)

 

 

 

 

 

Insured cash account sweep

$

46.8

 

$

47.7

 

(2%)

$

30.0

 

56%

Deposit cash account sweep

 

11.5

 

 

12.7

 

(9%)

 

9.3

 

24%

Total Bank Sweep

 

58.4

 

 

60.3

 

(3%)

 

39.3

 

49%

Money market sweep

 

3.0

 

 

3.2

 

(6%)

 

16.1

 

(81%)

Total Client Cash Sweep Held by Third Parties

 

61.4

 

 

63.5

 

(3%)

 

55.4

 

11%

Client cash account

 

2.7

 

 

3.3

 

(18%)

 

1.7

 

59%

Total Client Cash Balances

$

64.1

 

$

66.8

 

(4%)

$

57.1

 

12%

Client Cash Balances as a % of Total Assets

 

5.8

%

 

6.4

%

(60bps)

 

4.7

%

110bps

 

 

 

 

 

 

Client Cash Balances Average Yields - bps(23)

 

 

 

 

 

Insured cash account sweep

 

291

 

 

212

 

79

 

101

 

190

Deposit cash account sweep

 

254

 

 

157

 

97

 

19

 

235

Money market sweep

 

32

 

 

38