Cohen & Co Inc. Files 10-Q for Q1 2024

TL;DR

<b>Cohen & Co Inc. filed its Q1 2024 10-Q, reporting on financial performance and investment valuations.</b>

AI Summary

Cohen & Co Inc. (COHN) filed a Quarterly Report (10-Q) with the SEC on May 6, 2024. Cohen & Co Inc. filed a 10-Q for the period ending March 31, 2024. The filing details financial performance and operational updates for the first quarter of 2024. Key financial figures such as revenue, net income, and EPS are presented. The report includes information on potentially dilutive securities and their impact on per-share calculations. Details on the fair value measurement of certain investments, including those in the U.S. Insurance JV and CREO JV, are provided.

Why It Matters

For investors and stakeholders tracking Cohen & Co Inc., this filing contains several important signals. This 10-Q provides investors with a quarterly update on Cohen & Co Inc.'s financial health and strategic positioning. Understanding the details of investment valuations and potentially dilutive securities is crucial for assessing the company's future earnings potential and shareholder value.

Risk Assessment

Risk Level: medium — Cohen & Co Inc. shows moderate risk based on this filing. The company's financial performance is subject to market fluctuations and the specific nature of its investments in real estate and insurance, which carry inherent risks.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-Q to understand the company's current financial standing and future outlook.

Financial Highlights

revenue

27,413,098

net Income

1,926,838

eps

0.01

Key Numbers

• 27,413,098 — Revenue (Q1 2024)
• 1,926,838 — Net Income (Q1 2024)
• 0.01 — EPS (Q1 2024)
• 49,614 — Junior subordinated notes par amount (As of reporting period)

Key Players & Entities

• Cohen & Co Inc. (company) — Filer name
• 20240331 (date) — Conformed period of report
• 20240506 (date) — Filed as of date
• 0001270436 (company) — Central Index Key
• 6211 (industry) — Standard Industrial Classification
• MD (state) — State of incorporation
• 1231 (date) — Fiscal year end
• U.S. Insurance JV (company) — Investment entity

FAQ

Risk Factors

• Fair Value Measurement of Investments [medium — financial]: The company uses NAV as a practical expedient to measure fair value for investments in the U.S. Insurance JV and CREO JV, which are not categorized within the valuation hierarchy.
• Potentially Dilutive Securities [medium — financial]: Securities that could dilute earnings per share were not included in diluted calculations if they were anti-dilutive.

Key Dates

• 2024-03-31: End of Reporting Period — Q1 2024 financial results
• 2024-05-06: Filing Date — 10-Q submission

Glossary

NAV

Net Asset Value (Used as a practical expedient to measure the fair value of certain investments.)

CREO JV

A joint venture investing in multi-family commercial real estate mortgage-backed loans. (Its investments are measured using NAV and are not categorized within the valuation hierarchy.)

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share COHN The NYSE American St

Filing Documents

• cohn20240331_10q.htm (10-Q) — 2826KB
• ex_642223.htm (EX-31.1) — 14KB
• ex_642224.htm (EX-31.2) — 14KB
• ex_642225.htm (EX-32.1) — 7KB
• ex_642226.htm (EX-32.2) — 7KB
• 0001437749-24-014741.txt (&nbsp;) — 14036KB
• cohn-20240331.xsd (EX-101.SCH) — 121KB
• cohn-20240331_cal.xml (EX-101.CAL) — 73KB
• cohn-20240331_def.xml (EX-101.DEF) — 691KB
• cohn-20240331_lab.xml (EX-101.LAB) — 524KB
• cohn-20240331_pre.xml (EX-101.PRE) — 743KB
• cohn20240331_10q_htm.xml (XML) — 3097KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 5 Consolidated Balance Sheets—March 31, 2024 and December 31, 2023 5 Consolidated Statements of Operations and Comprehensive Income (Loss)—Three Months Ended March 31, 2024 and 2023 6 Consolidated Statements of Changes in Equity—Three Months Ended March 31, 2024 and 2023 7 Consolidated Statements of Cash Flows—Three Months Ended March 31, 2024 and 2023 9

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 10 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 56 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 79 Item 4.

Controls and Procedures

Controls and Procedures 80

OTHER INFORMATION

Part II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 81 Item 1A.

Risk Factors

Risk Factors 81 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 82 Item 3. Defaults Upon Senior Securities 82 Item 4. Mine Safety Disclosures 82 Item 5. Other Information 82 Item 6. Exhibits 83

Signatures

Signatures 84 2 Table of Contents

Forward-Looking Statements

Forward-Looking Statements This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements discuss matters that are not historical facts. Because they discuss future events or conditions, forward-looking statements may include words such as "anticipate," "believe," "estimate," "intend," "could," "should," "would," "may," "seek," "plan," "might," "will," "expect," "predict," "project," "forecast," "potential," "continue," negatives thereof or similar expressions. Forward-looking statements speak only as of the date they are made, are based on various underlying assumptions and current expectations about the future and are not guarantees. Such statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, level of activity, performance, or achievement to be materially different from the results of operations or plans expressed or implied by such forward-looking statements. These forward-looking statements are found at various places throughout this Quarterly Report on Form 10-Q and include information concerning possible or assumed future results of our operations, including statements about the following subjects: integration of operations; business strategies; growth opportunities; competitive position; market outlook; expected financial position; expected results of operations; future cash flows; financing plans; plans and objectives of management; tax treatment of the business combinations; our investments in both SPACs and SPAC sponsor entities, including through our SPAC Series Funds; our role as asset manager and sponsor in our SPAC franchise; fair value of assets; and any other statements regarding future growth, future c

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS. COHEN & COMPANY INC. CONSOLIDATED BALANCE SHEETS (Dollars in Thousands) March 31, 2024 (unaudited) December 31, 2023 Assets Cash and cash equivalents $ 11,829 $ 10,650 Receivables from brokers, dealers, and clearing agencies 68,105 66,801 Due from related parties 998 772 Other receivables 6,784 5,373 Investments-trading 165,903 181,328 Other investments, at fair value 59,533 72,217 Receivables under resale agreements 692,438 408,408 Investments in equity method affiliates 43,281 14,241 Deferred income taxes 1,639 1,580 Goodwill 109 109 Right-of-use asset - operating leases 7,000 7,541 Other assets 3,706 3,741 Total assets $ 1,061,325 $ 772,761 Liabilities Payables to brokers, dealers, and clearing agencies $ 110,856 $ 111,085 Accounts payable and other liabilities 10,104 8,115 Due to related parties 437 - Accrued compensation 13,176 17,268 Lease liability - operating leases 7,632 8,216 Trading securities sold, not yet purchased 57,115 65,751 Other investments sold, not yet purchased, at fair value 20,217 24,742 Securities sold under agreements to repurchase 690,900 408,203 Redeemable financial instruments 7,868 7,868 Debt 29,697 29,716 Total liabilities 948,002 680,964 Commitments and contingencies (See note 21) Stockholders' Equity: Voting Non-Convertible Preferred Stock, $ 0.001 par value per share, 50,000,000 shares authorized, 27,413,098 shares issued and outstanding 27 27 Common Stock, $ 0.01 par value per share, 100,000,000 shares authorized, 1,926,838 and 1,893,747 shares issued and outstanding, respectively, including 318,332 and 367,491 unvested or restricted share awards, respectively 19 19 Additional paid-in capital 75,314 74,594 Accumulated other comprehensive loss ( 969 ) ( 944 ) Accumulated deficit ( 30,638 ) ( 32,014 ) Total stockholders' equity 43,753 41,682 Non-controlling interest 69,570 50,115 Total equity 1

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Dollars in Thousands, except share and per share information) (Unaudited) 1. ORGANIZATION AND NATURE OF OPERATIONS Organizational History Cohen Brothers, LLC ("Cohen Brothers") was formed on October 7, 2004 by Cohen Bros. Financial, LLC ("CBF"). Cohen Brothers was established to acquire the net assets of CBF's subsidiaries (the "Formation Transaction"): Cohen Bros. & Company Inc.; Cohen Frres SAS; Dekania Investors, LLC; Emporia Capital Management, LLC; and the majority interest in Cohen Bros. & Toroian Investment Management, Inc. The Formation Transaction was accomplished through a series of transactions occurring between March 4, 2005 and May 31, 2005. From its formation until December 16, 2009, Cohen Brothers operated as a privately owned limited liability company. On December 16, 2009, Cohen Brothers completed its merger (the "AFN Merger") with a subsidiary of Alesco Financial Inc. ("AFN"), a publicly traded real estate investment trust ("REIT"). As a result of the AFN Merger, AFN contributed substantially all of its assets into Cohen Brothers in exchange for newly issued units of membership interests directly from Cohen Brothers. In addition, AFN received additional Cohen Brothers membership interests directly from its members in exchange for AFN common stock. In accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), the AFN Merger was accounted for as a reverse acquisition, and Cohen Brothers was deemed to be the accounting acquirer. As a result, all of AFN's assets and liabilities were required to be revalued at fair value as of the acquisition date. The remaining units of membership interests of Cohen Brothers that were not held by AFN were included as a component of non-controlling interest in the consolidated balance sheets. Subsequent to the AFN Merger, AFN was renamed Cohen & Company Inc. In January 2011, it was renamed again as Institutional Financ

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