Oppenheimer Holdings Inc. Reports Third Quarter 2013 Earnings and Announces Quarterly Dividend

 Oppenheimer Holdings Inc. Reports Third Quarter 2013 Earnings and Announces
                              Quarterly Dividend

PR Newswire

NEW YORK, Oct. 25, 2013

NEW YORK, Oct. 25, 2013 /PRNewswire/ - Oppenheimer Holdings Inc. (NYSE: OPY)
today reported net income of $5.2 million or $0.38 per share for the third
quarter of 2013 compared with net income of $2.3 million or $0.17 per share
for the third quarter of 2012, an increase of 125.5%. Revenue for the third
quarter of 2013 was $243.4 million compared with $231.8 million in the third
quarter of 2012, an increase of 5.0%.

                                                        
                    Summary Operating Results (Unaudited)
  ('000s, except
  Earnings Per
  Share and Book
  Value Per
 Share)                                                  
                 For the 3-Months Ended         For the 9-Months Ended
                9/30/13  9/30/12   % Δ    9/30/13  9/30/12     % Δ
 Revenue        $ 243,376 $ 231,838    5.0  $ 726,352 $  703,197       3.3
  Net Income
 ^(1)           $   5,237 $   2,322  125.5  $  11,748 $       87  13,403.4
  Earnings Per
 Share^(1)                                               
  Basic       $    0.38 $    0.17  123.5  $    0.86 $     0.01   8,500.0
  Diluted     $    0.37 $    0.16  131.3  $    0.83 $     0.01   8,200.0
  Weighted
  Average # of
  Common Shares
 Outstanding                                             
  Basic         13,604   13,611  (0.1)    13,607    13,599       0.1
  Diluted       14,172   14,161    0.1    14,110    13,937       1.2
                         As of:                         As of:
                9/30/13  9/30/12   % Δ    9/30/13  12/31/12    % Δ
   Book Value
 Per Share      $   37.68 $   37.10    1.6  $   37.68 $    36.80       2.4
   Tangible
  Book Value Per
 Share          $   25.16 $   24.60    2.3  $   25.16 $    24.34       3.4

(1) Attributable to Oppenheimer Holdings Inc.

The economy continued to improve during the third quarter of 2013. While  the 
ongoing purchases of bonds by the Federal Reserve during the period  continued 
to improve liquidity, the uncertainty surrounding the timing of the  reduction 
in the central  bank's bond purchasing  program held down  volumes during  the 
quarter. The Federal Reserve's decision at the end of the quarter to  continue 
its bond purchases drove U.S. equity markets back towards historic highs. The
quarter ended with  the S&P 500  Index up  4.7% on lower  trading volumes  and 
volatility. At the end of the third quarter, fixed income yields declined  as 
a result of the  Federal Reserve decision against  "tapering" combined with  a 
flight to safety near quarter end in anticipation of a government shutdown due
to lack of a budget and concerns over the near term debt ceiling negotiations.

Albert G. Lowenthal, Chairman and CEO, said "We are pleased with the continued
improvement in our  operating results.  Higher equity  valuations and  client 
investment flows helped produce another record period for our asset management
fee-based programs. An increase in equity issuance led to a solid quarter for
our equity capital markets business. The commercial mortgage banking business
continued its  strong  performance  as loan  origination  volumes  increased. 
However, the  decrease  in  corporate finance  fees  from  investment  banking 
activities during the period negatively affected operating results.

The recent government shutdown and threat of default by the federal government
sowed considerable market volatility both as it began and as it was  resolved, 
at least for the short term. The continued growth of the economy may lead  the 
Federal Reserve to  begin tapering by  year end. It  seems unlikely that  this 
action will disrupt markets given the  increase in interest rates since  May. 
We continue to be optimistic about  the business environment and believe  that 
we are extremely well positioned to  participate in the upside of a  sustained 
economic recovery."

Financial Highlights

  *Commission revenue was $120.3 million for the third quarter of 2013, an
    increase of 6.0% compared with the third quarter of 2012.

  *Principal transactions revenue decreased 28.0% to $10.3 million during the
    third quarter of 2013 compared with the third quarter of 2012 due to a
    reduction of trading profits associated with corporate and municipal
    bonds, resulting from concerns of market participants over tapering and,
    as a result, their reluctance to transact during the period.

  *Investment banking revenue was down 1.1% to $21.4 million for the third
    quarter of 2013 compared with $21.6 million during the third quarter of
    2012 due to lower corporate finance activity in the 2013 quarter.

  *Advisory fees were $60.1 million during the third quarter of 2013, an
    increase of 13.4% compared with the third quarter of 2012.

                                                                    
                                                                    
                         Business Segment Results (Unaudited)
                                                                    
                            For the 3-Months Ended         For the 9-Months Ended
 ('000s)                  9/30/13   9/30/12    % Δ    9/30/13   9/30/12    % Δ
 Revenue                                                            
        Private Client  $  144,316 $  133,798     7.9 $  430,963 $  406,530     6.0
          Asset
        Management         21,488    19,812     8.5    64,450    58,848     9.5
        Capital Markets    68,460    68,587   (0.2)   201,495   209,477   (3.8)
          Commercial
          Mortgage
        Banking             9,314     8,738     6.6    26,857    27,726   (3.1)
        Corporate/Other     (202)       903       *     2,587       616   320.1
                          243,376   231,838     5.0   726,352   703,197     3.3
  Income Before Income
 Taxes                                                               
        Private Client     15,088    11,825    27.6    48,113    39,557    21.6
          Asset
        Management          6,387     4,129    54.7    20,332    13,225    53.7
        Capital Markets     4,301     3,474    23.8     8,806     4,479    96.6
          Commercial
          Mortgage
        Banking             2,823     3,155  (10.5)     7,977    11,985  (33.4)
        Corporate/Other  (20,436)  (17,325)    18.0  (64,678)  (62,638)     3.3
                        $    8,163 $    5,258    55.2 $   20,550 $    6,608   211.0

* Not comparable

Private Client

Private Client reported  revenue of $144.3  million for the  third quarter  of 
2013, 7.9% higher than the third quarter of 2012. Income before income  taxes 
was $15.1 million,  an increase of  27.6% compared with  the third quarter  of 
2012, driven by increases in both transactional and fee-based business  during 
the third quarter of  2013 compared with the  same period of 2012.  Operating 
results for Private Client were negatively impacted by litigation expenses  of 
$2.3 million during the third quarter of 2013.

  *Client assets under administration were $81.8 billion at September 30,
    2013.

  *Financial Advisor headcount was 1,400 at the end of the quarter, down from
    1,423 from the prior year period.

  *Retail commissions were $80.2 million for the quarter, an increase of 1.5%
    over the prior year quarter.

  *Advisory fee revenue on traditional and alternative managed products was
    $39.3 million for the third quarter of 2013, an increase of 18.5% over the
    prior year quarter (see Asset Management below for further information).

  *The impact of money market fee waivers reduced revenue by $7.9 million
    during the third quarter of 2013 versus $6.3 million during the third
    quarter of 2012.

Asset Management

Asset Management reported revenue  of $21.5 million for  the third quarter  of 
2013, 8.5% higher than the third quarter of 2012. Income before income  taxes 
was $6.4 million,  an increase  of 54.7% compared  with the  third quarter  of 
2012, as a  result of increased  fees earned  on managed products  as well  as 
lower legal costs.

  *Advisory fee revenue on traditional and alternative managed products was
    $19.8 million for the third quarter of 2013, an increase of 11.0% over the
    prior year quarter. Asset management fees are calculated based on client
    assets under management ("AUM") at the end of the prior quarter which
    totaled $22.5 billion at June 30, 2013 ($20.1 billion at June 30, 2012)
    and are allocated to the Private Client and Asset Management Divisions.

  *AUM increased 12.8% to $23.8 billion at September 30, 2013, a record for
    the Company, compared to $21.1 billion at September 30, 2012, which is the
    basis for advisory fee billings for the fourth quarter of 2013. The
    increase in AUM was comprised of asset appreciation of $1.6 billion and
    net new assets of $1.1 billion.

Capital Markets

Capital Markets reported  revenue of $68.5  million for the  third quarter  of 
2013, 0.2% lower than the third  quarter of 2012. Income before income  taxes 
was $4.3 million during the third  quarter of 2013 compared with $3.5  million 
during the third quarter of 2012, as higher compensation costs were offset  by 
a reduction in occupancy and interest costs.

  *Institutional equities commissions were $26.8 million for the third
    quarter of 2013, an increase of 8.6% compared with the prior year period.

  *Advisory fees from investment banking activities decreased 72.5% to $3.2
    million in the third quarter of 2013 compared with the prior year period.

  *Equity underwriting fees increased $7.7 million to $13.6 million for the
    third quarter of 2013 compared with the prior year period.

  *Revenue from Taxable Fixed Income increased 5.3% to $19.8 million for the
    third quarter of 2013 compared with the prior year period.

  *Public Finance and Municipal Trading revenue was down 34.6% to $5.3
    million for the third quarter of 2013 compared with the prior year period
    primarily due to a reduction of municipal bond trading profits.

Commercial Mortgage Banking

Commercial Mortgage Banking  reported revenue  of $9.3 million  for the  third 
quarter of  2013, 6.6%  higher  than the  third quarter  of  2012, due  to  an 
increase in the dollar volume of loans originated during the current  period. 
Income before income taxes was $2.8 million, a decrease of 10.5% compared with
the third quarter of 2012.

  *Loan origination fees for the third quarter of 2013 were $2.7 million as
    the Company originated 18 commercial loans with an aggregate principal
    loan balance of $193.0 million.

  *Net servicing revenue for the third quarter of 2013 was $1.3 million
    compared with $1.1 million for the comparable period in 2012.

  *Principal loan balances related to servicing activities totaled $3.9
    billion at September 30, 2013, up 12.5% from September 30, 2012.

Compensation and Benefit Expenses

Compensation  and  benefits  (including  salaries,  production  and  incentive 
compensation,  share-based  compensation,  deferred  compensation,  and  other 
benefit-related items)  totaled $161.1  million during  the third  quarter  of 
2013, an increase of 6.0% over the  third quarter of 2012. Compensation as  a 
percentage of revenue was 66.2% during  the third quarter of 2013 compared  to 
65.6%  during  the  third  quarter   of  2012.  Higher  salary  expense   and 
production-related compensation  contributed to  the increase  as well  as  an 
increase in deferred  compensation costs. Deferred  compensation expense  was 
partially offset by increases in the  value of assets underlying the  deferred 
compensation plans. These increased compensation costs during the period  were 
offset by lower current incentive compensation costs.

Non-Compensation Expenses

Non-compensation expenses were $74.1 million during the third quarter of 2013,
relatively flat compared to $74.6 million  during the same period last  year. 
Higher communications  and  technology  costs were  largely  offset  by  lower 
occupancy and equipment costs during the third quarter of 2013 compared to the
same period last year.

Provision for Income Taxes

The effective income tax rate for the third quarter of 2013 was 32.5% compared
with 42.5% for the prior year third quarter primarily due to higher nontaxable
benefits received  during the  third  quarter of  2013  with respect  to  life 
insurance on certain employees of which the Company is the beneficiary.

Balance Sheet and Liquidity

  *At September 30, 2013, total equity was $515.3 million  compared with
    $505.0 million  at December 31, 2012.

  *At September 30, 2013, book value per share was $37.68 (compared with
    $36.80 at December 31, 2012) and tangible book value per share was $25.16
    (compared with $24.34 at December 31, 2012).

  *The Company's level 3 assets were $86.8 million at September 30, 2013
    (compared with $85.4 million at December 31, 2012).

Dividend Announcement

  *The Company today announced a quarterly dividend in the amount of $0.11
    per share, payable on November 22, 2013 to holders of Class A non-voting
    and Class B voting common stock of record on November 8, 2013.

Company Information

Oppenheimer Holdings Inc.,  through its operating  subsidiaries, is a  leading 
middle market investment bank and  full service broker-dealer that provides  a 
wide range  of  financial  services  including  retail  securities  brokerage, 
institutional sales and trading, investment banking (both corporate and public
finance),  research,   market-making,   trust,  investment   management,   and 
commercial  mortgage.  With  roots   tracing  back  to   1881,  the  firm   is 
headquartered in  New York  and has  96 offices  in 25  states and  5  foreign 
jurisdictions.

Forward-Looking Statements

This press release includes  certain "forward-looking statements" relating  to 
anticipated future performance. For  a discussion of  the factors that  could 
cause future performance to be  different than anticipated, reference is  made 
to Factors Affecting "Forward-Looking Statements"  and Part 1A - Risk  Factors 
in Oppenheimer's Annual Report  on Form 10-K for  the year ended December  31, 
2012.

                                                              
                          Oppenheimer Holdings Inc.
             Quarterly Consolidated Income Statement (unaudited)
 ('000s, except EPS)                                           
                        For the 3-Months Ended     For the 9-Months Ended
                       9/30/13  9/30/12   % Δ    9/30/13  9/30/12    % Δ
 REVENUE                                                       
  Commissions         $120,252 $113,424    6.0  $364,272 $351,487      3.6
   Principal
 transactions, net        10,347   14,372 (28.0)    33,596   40,387   (16.8)
  Interest              14,439   14,823  (2.6)    39,916   42,462    (6.0)
  Investment banking    21,362   21,589  (1.1)    62,377   66,647    (6.4)
  Advisory fees         60,117   53,015   13.4   177,417  156,796     13.2
  Other                 16,859   14,615   15.4    48,774   45,418      7.4
                        243,376  231,838    5.0   726,352  703,197      3.3
                                                              
 EXPENSES                                                      
   Compensation and
 related expenses        161,081  151,969    6.0   480,296  461,516      4.1
   Clearing and
 exchange fees             6,099    6,026    1.2    18,434   18,046      2.2
   Communications and
 technology               16,999   15,880    7.0    48,881   47,346      3.2
   Occupancy and
 equipment costs          16,405   17,526  (6.4)    51,111   59,279   (13.8)
  Interest               6,164    8,842 (30.3)    20,169   25,864   (22.0)
  Other                 28,465   26,337    8.1    86,911   84,538      2.8
                        235,213  226,580    3.8   705,802  696,589      1.3
                                                              
  Income before income
 taxes                     8,163    5,258   55.2    20,550    6,608    211.0
 Income tax provision      2,655    2,234   18.8     8,083    4,092     97.5
  Net income for the
 period                    5,508    3,024   82.1    12,467    2,516    395.5
  Less net income
  attributable to
  non-controlling
 interest, net of tax        271      702 (61.4)       719    2,429   (70.4)
  Net income
  attributable to
  Oppenheimer Holdings
 Inc.                     $5,237   $2,322  125.5   $11,748      $87 13,403.4
                                                              
  Earnings per share
  attributable to
  Oppenheimer Holdings
 Inc.                                                          
  Basic                  $0.38    $0.17  123.5     $0.86    $0.01  8,500.0
  Diluted                $0.37    $0.16  131.3     $0.83    $0.01  8,200.0
                                                              
  Weighted Average
  Number of Common
 Shares Outstanding                                            
  Basic                 13,604   13,611  (0.1)    13,607   13,599      0.1
  Diluted               14,172   14,161    0.1    14,110   13,937      1.2
                               



SOURCE Oppenheimer Holdings Inc.

Contact:

Jeffrey Alfano
212-825-4331