Financial Performance - Total revenues for 2021 reached $2,041,795, a 63% increase from $1,252,658 in 2020 [316]. - Investment banking revenues significantly rose to $1,553,219, up 81% from $858,476 in 2020 [316]. - Net income applicable to Piper Sandler Companies was $278,514, representing a 588% increase from $40,504 in 2020 [318]. - Earnings per diluted common share increased to $16.43, compared to $2.72 in 2020, marking a 504% rise [318]. - Net income for 2021 was $330,368,000, a significant increase from $49,356,000 in 2020 and $118,174,000 in 2019, reflecting strong operational performance [326]. - Comprehensive income applicable to Piper Sandler Companies was $277,747, up from $41,179 in 2020 [320]. - Dividends paid in 2021 totaled $99,350,000, an increase from $28,172,000 in 2020, reflecting a stronger financial position [328]. Assets and Liabilities - Total assets grew to $2,565,307, up 29% from $1,997,140 in 2020 [314]. - The company reported a net deferred income tax asset of $158,200, an increase from $104,219 in 2020 [314]. - The balance of common stock at the end of 2021 was $195,000, with total shareholders' equity amounting to $1,226,855,000, indicating a solid capital structure [323]. - Total liabilities related to financial instruments and other inventory positions sold but not yet purchased were $128,690,000 [450]. Cash Flow - Cash provided by operating activities in 2021 was $707,087,000, compared to $779,765,000 in 2020, indicating a slight decrease in cash generation [328]. - Total cash and cash equivalents at the end of 2021 reached $970,965,000, up from $507,935,000 in 2020, showcasing improved liquidity [328]. - The company repurchased common stock amounting to $69,901,000 in 2021, compared to $21,965,000 in 2020, indicating a commitment to returning value to shareholders [328]. Internal Control and Audit - The company maintained effective internal control over financial reporting as of December 31, 2021, according to an independent audit [293]. - The independent auditor expressed an unqualified opinion on the effectiveness of the company's internal control over financial reporting [296]. - The company assessed the effectiveness of its internal control over financial reporting using the COSO criteria [292]. - The company's internal control system is designed to provide reasonable assurance regarding the reliability of financial reporting [291]. Investments and Acquisitions - The company's investments at fair value totaled $239.4 million as of December 31, 2021, primarily consisting of investments in private companies [310]. - The acquisition of SOP Holdings, LLC was completed for an economic value of $485.0 million, enhancing the Company's advisory services revenues and increasing scale in corporate financings [382]. - The acquisition of Valence was completed for cash consideration of $30.3 million and unsecured promissory notes totaling $20.0 million, expanding the Company's presence in Europe [390]. - The acquisition of TRS Advisors LLC was completed for cash consideration of $23.7 million, expanding the scale of the Company's restructuring advisory business [398]. - The acquisition of Weeden & Co. was completed for approximately $42.0 million, enhancing trade execution capabilities [405]. Fair Value Measurements - Of the total investments at fair value, $142.3 million are categorized as Level III within the fair value hierarchy [310]. - The company accounts for equity investments in private companies at fair value and investments in partnerships under the equity method [362]. - The Company utilizes observable inputs for fair value measurements wherever possible, and unobservable inputs when necessary [429]. - The Company has established independent pricing verification reviews to ensure the reasonableness of fair value measurements [430]. Employee Compensation - Compensation and benefits expenses rose to $1,305,166, up 48% from $877,462 in 2020 [316]. - The Company recorded a stock-based compensation expense of $171,447,000 in 2021, up from $121,688,000 in 2020, highlighting increased investment in employee incentives [326]. Other Financial Metrics - The company reported unrealized gains of $478,000 in 2021, compared to losses of $3.3 million in 2020 and gains of $1.5 million in 2019 [427]. - The average expected recovery rate for tax-exempt municipal securities was 13.4% of par, with a range of 0% to 25% [446]. - The average revenue multiple for equity securities in private companies was 3.2 times, with a range of 2 to 5 times [446]. - The average EBITDA multiple for equity securities in private companies was 12.0 times, with a range of 11 to 13 times [446].

Financial Data and Key Metrics Changes - The company generated $634 million of adjusted net revenues in Q4 2021, a 29% increase from the previous quarterly record [7] - For the full year 2021, adjusted net revenues totaled $2 billion, reflecting a 60% increase over the prior year [46] - Operating margin for Q4 2021 was 30.7%, with adjusted EPS of $7.84, both quarterly records [7][50] - The full year operating margin was 27.8%, up from 20.3% in 2020, indicating significant margin expansion [51] Business Line Data and Key Metrics Changes - Corporate investment banking revenues reached $476 million in Q4 2021, up 62% sequentially and 85% year-over-year [13] - Advisory revenues exceeded $1 billion for the first time in history, driven by strong M&A activity [15] - Equity brokerage revenues for Q4 2021 were $42 million, a 23% sequential increase but down 5% year-over-year [31] - Municipal financing revenues for Q4 2021 were $59 million, up 39% from Q3 and 47% from the previous year [35] Market Data and Key Metrics Changes - The U.S. equity issuance fee pool surpassed $20 billion for the first time, more than double the last 10-year average [21] - Municipal issuance in 2021 was $475 billion, nearly reaching the 2020 record of $485 billion [36] - The healthcare team completed 97 transactions, raising over $20 billion in capital, ranking among the top three investment banks for healthcare IPOs [22] Company Strategy and Development Direction - The company aims to grow annual corporate investment banking revenues to $2 billion over the next five years, focusing on both organic and inorganic growth [29][82] - Strategic initiatives include expanding into technology, healthcare services, and renewable energy sectors [12] - The acquisition of Cornerstone Macro and Stanford Partners is expected to enhance research capabilities and advisory services [11][12] Management's Comments on Operating Environment and Future Outlook - Management expects M&A activity to remain strong in 2022, although advisory revenues may decline in the first half compared to the second half of 2021 [19][20] - The company anticipates a continuation of strong demand for services, supported by economic growth and capital availability [20] - There is optimism regarding the energy sector's recovery and the potential for growth in European markets [91] Other Important Information - The company announced a special cash dividend of $4.50 per share, with total dividends for 2021 amounting to $9.45 per share, a three-fold increase over 2020 [55] - The company repurchased approximately 572,000 shares, totaling $70 million, to offset dilution from annual stock grants [57] Q&A Session Summary Question: Equity underwriting pipeline status - Management noted that many deals are on hold rather than canceled, and market stabilization is needed for clients to proceed with transactions [62] Question: Investment priorities amid cost inflation - The company is focused on growth and hiring, with the adjusted compensation ratio reflecting a balance of performance and investment considerations [64] Question: Trends in the M&A market - Management indicated that the factors driving strong advisory business in 2021 remain in place, with a healthy pipeline for the upcoming year [70] Question: Impact of interest rates on fixed income business - Higher rates are generally beneficial for the business, with expectations of increased client activity as they adjust to the changing rate environment [74] Question: Excess cash position and future plans - The company has seen an increase in excess cash year-over-year, allowing for continued investment in growth and corporate development [76]

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 September 30, 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 No. 001-31720 PIPER SANDLER COMPANIES (Exact Name of Registrant as specified in its Charter) (State or Other Jurisdiction of Incorporat ...

Piper Sandler Companies (NYSE:PIPR) Q3 2021 Earnings Conference Call October 29, 2021 10:00 AM ET Company Participants Chad Abraham - Chairman & Chief Executive Officer Deb Schoneman - President Tim Carter - Chief Financial Officer Conference Call Participants Devin Ryan - JMP Securities James Yaro - Goldman Sachs Michael Brown - Keefe Bruyette & Woods Mike Grondahl - Northland Securities Operator Good morning, and welcome to the Piper Sandler Companies Conference Call to discuss the financial results for t ...

Financial Performance - Net revenues for the three months ended June 30, 2021, were $508.648 million, a 73.9% increase compared to $292.438 million in the same period of 2020[183]. - Adjusted net revenues for the three months ended June 30, 2021, were $492.673 million, reflecting a 68.3% increase from $292.667 million in the prior year[185]. - For the three months ended June 30, 2021, net income applicable to Piper Sandler Companies was $69.8 million, a significant increase from $1.5 million in the prior-year period[199]. - Net revenues for the same period were $508.6 million, representing a 73.9% increase compared to $292.4 million in the year-ago period[199]. - Investment banking revenues reached $387.1 million, up 93.7% from $199.8 million in the prior-year period, driven by higher advisory services and increased corporate and municipal financing revenues[199]. - Adjusted net revenues for the three months ended June 30, 2021, were $492.7 million, compared to $292.7 million in the second quarter of 2020[217]. - Investment banking revenues increased 90.4% to $683.2 million for the six months ended June 30, 2021, compared to $358.8 million in the prior-year period[230]. - Net revenues for the six months ended June 30, 2021 increased 77.3% to $937.3 million, compared to $528.6 million in the year-ago period[230]. Earnings and Margins - Net income applicable to Piper Sandler Companies for the three months ended June 30, 2021, was $69.821 million, compared to $1.454 million in the same period of 2020[183]. - Earnings per diluted common share for the three months ended June 30, 2021, were $4.12, significantly up from $0.10 in the prior year[183]. - Adjusted earnings per diluted common share for the same period were $5.37, a 178.2% increase from $1.93 in 2020[183]. - The pre-tax margin for the three months ended June 30, 2021, was 22.4%, compared to 2.5% in the same period of 2020[183]. - Adjusted pre-tax margin for the three months ended June 30, 2021 increased to 27.7%, compared with 17.7% for the corresponding period of 2020[226]. - Pre-tax margin for the six months ended June 30, 2021, was 21.0%, with an adjusted pre-tax margin of 26.4%, up from 15.0% in the corresponding period of 2020[244]. Expenses - Compensation and benefits for the same period were $325.252 million, up 52.3% from $213.560 million year-over-year[183]. - Non-interest expenses for the three months ended June 30, 2021, were $394.6 million, a 38.4% increase from $285.0 million in the prior-year period, primarily due to higher compensation expenses[199]. - Non-compensation expenses for the three months ended June 30, 2021, were $69.336 million, a slight decrease of 3.0% from $71.481 million in the prior year[183]. - Marketing and business development expenses surged 97.6% to $5.1 million, driven by higher travel and entertainment costs due to the easing of COVID-19 restrictions[205]. - Interest expense decreased to $2.7 million for the three months ended June 30, 2021, compared to $3.5 million in the prior-year period[225]. - Interest expense decreased to $5.5 million from $7.7 million in the prior-year period, attributed to lower average short inventory balances[244]. Investment Banking and Advisory Services - Advisory services revenues reached a record $248.7 million, significantly up from $85.6 million in the second quarter of 2020, driven by more completed transactions and higher average fees[219]. - Corporate financing revenues were $102.4 million, up 22.7% compared to $83.4 million for the same period in 2020, primarily due to an increase in completed equity deals[219]. - Municipal financing revenues for the three months ended June 30, 2021, were $36.1 million, up 17.1% from $30.8 million in the prior-year period[219]. - Investment banking revenues reached $683.2 million, a 90.4% increase compared to $358.8 million in the prior-year period, driven by a rebound in advisory services activity[240]. - Advisory services revenues were $401.5 million, up 104.0% from $196.8 million in the first half of 2020, due to more completed transactions and higher revenue per transaction[240]. - Corporate financing revenues increased by 101.2% to $218.5 million from $108.6 million in the prior-year period, supported by favorable market conditions for capital raising[240]. Shareholder Returns and Capital Management - The company’s dividend policy aims to return between 30% and 50% of adjusted net income to shareholders, including quarterly and annual special cash dividends[250]. - The board of directors declared dividends totaling $0.750 and $0.375 per share on January 31, 2020, and $1.850 and $0.400 per share on February 4, 2021, reflecting a special cash dividend based on previous fiscal year results[251]. - As of June 30, 2021, the company repurchased 197,697 shares at an average price of $116.71 per share, totaling $23.1 million, with $113.8 million remaining under the share repurchase authorization of $150.0 million[252]. Assets and Capital Structure - Total assets increased to $2,114,337 thousand as of June 30, 2021, from $1,997,140 thousand as of December 31, 2020, while total shareholders' equity rose to $1,074,970 thousand from $926,082 thousand[254]. - The leverage ratio improved to 2.0 as of June 30, 2021, down from 2.2 as of December 31, 2020, indicating a stronger equity position[254]. - As of June 30, 2021, the net capital under SEC's uniform net capital rule was $257.6 million, exceeding the minimum requirement by $256.6 million[272]. - Piper Sandler Companies has a $100 million revolving secured credit facility, with no advances against it as of June 30, 2021[262]. - The company retired its commercial paper program in April 2021, indicating a shift in funding strategy[263]. Risk Management - The company’s risk management process includes daily monitoring of market and credit risks, with senior management involved in oversight[285]. - The company is exposed to liquidity risk due to potentially illiquid inventory positions and the need for timely access to funding sources[296]. - Interest rate risk is managed by selling short U.S. government securities and establishing limits on long fixed income securities inventory[290]. - The audit committee oversees management's processes for identifying and evaluating major risks, including market, credit, and liquidity risks[283]. - Operational risk includes potential financial loss and damage to reputation due to inadequate processes, systems, or external events, which could disrupt business operations[306]. - Human capital risk is significant, as the company's success depends on attracting and retaining qualified employees motivated to serve client interests[310]. - Legal and regulatory risks include non-compliance with extensive regulations, which could harm the company's reputation and operations[311]. - Inflation affects expenses such as employee compensation and leasing costs, which may not be recoverable in service pricing, potentially impacting financial results[313].

Financial Data and Key Metrics Changes - The company reported adjusted net revenues of $493 million for Q2 2021, representing a 19% increase sequentially and a 68% increase year-over-year [39][6] - Adjusted EPS for Q2 2021 was $5.37, marking a 29% increase from the previous peak [46] - For the first half of 2021, adjusted net revenues totaled $906 million, a 69% increase compared to the prior year [40] Business Line Data and Key Metrics Changes - Corporate Investment Banking revenues reached $351 million in Q2 2021, up 31% from the previous peak in Q1 2021 [8] - Advisory Services generated record revenues of $249 million during Q2 2021, up 63% sequentially and 191% year-over-year [13] - Equity brokerage revenues were $35 million, down 19% sequentially and 14% year-over-year due to reduced market volatility [25] - Municipal financing revenues were $36 million, up 33% from Q1 2021 and 17% year-over-year [28] - Fixed income revenues were $61 million, down 8% sequentially but up 25% year-over-year [32] Market Data and Key Metrics Changes - The company raised $24 billion in new capital for clients through 67 equity, debt, and preferred financings in Q2 2021 [18] - The health care team led the quarter in financing, completing 22 of the 24 deals [19] - The municipal market issuance remained strong, driven by new money issuance and refinancing activity [28] Company Strategy and Development Direction - The company aims to continue expanding sector coverage and developing new product capabilities while increasing market share [22][23] - There is a focus on strengthening non-depository sectors and enhancing advisory activity, particularly with private equity clients [10] - The company is committed to returning capital to shareholders, with a quarterly dividend increase of 22% [50][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong pipeline of deals, indicating a favorable outlook for the second half of 2021 [7] - The company noted that the M&A market is experiencing strong secular growth, driven by private equity activity and favorable financing conditions [17] - Management acknowledged potential scrutiny on M&A transactions from the Biden administration but indicated that it has not slowed activity [91][92] Other Important Information - The compensation ratio for Q2 2021 was 60.7%, down from 61.5% in Q1 2021, reflecting strong performance [41] - The company completed 58 M&A and restructuring transactions during Q2 2021 [14] - The company has been actively recruiting, finishing Q2 2021 with 145 managing directors in investment banking and capital markets [21] Q&A Session Summary Question: Outlook on M&A Advisory business - Management noted strong activity in Advisory and a robust pipeline, with broad-based participation across industry groups [57][58] Question: Fixed income brokerage opportunities - Management discussed the expansion of product expertise and indicated no significant increase in capital needs for growth [62][64] Question: Compensation ratio guidance - Management confirmed a compensation ratio near 61% with potential for leverage depending on revenue growth [66][68] Question: M&A cycle position and competition - Management believes the M&A market is in a secular growth phase, with financial sponsors being very active [74][75] Question: Dividend payout expectations - Management reiterated a dividend payout ratio of 30% to 50%, likely moving towards the higher end due to strong earnings [95][96]

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 No. 001-31720 PIPER SANDLER COMPANIES (Exact Name of Registrant as specified in its Charter) Delaware 30-0168701 (State or Other Jurisdicti ...

Piper Sandler Companies (NYSE:PIPR) Q1 2021 Earnings Conference Call April 30, 2021 9:00 AM ET Company Participants Chad Abraham – Chairman and Chief Executive Officer Deb Schoneman – President Tim Carter – Chief Financial Officer Conference Call Participants Devin Ryan – JMP Securities Mike Grondahl – Northland Securities Michael Brown – KBW Operator Good morning, and welcome to the Piper Sandler Companies Conference Call to discuss the financial results for the first quarter of 2021. During the question-a ...

FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2020 Commission File No. 001-31720 PIPER SANDLER COMPANIES (Exact Name of Registrant as specified in its Charter) (State or Other Jurisdiction of Incorporation or Organization) (IRS Employer Identification No.) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Registrant's Telephone Number, Including Area Code) Securities registered pursuant to Sectio ...

Financial Data and Key Metrics Changes - In Q4 2020, the company generated $400 million in adjusted net revenues and $4.17 in adjusted EPS, both quarterly records [14] - For the full year 2020, adjusted net revenues reached $1.2 billion, with an operating margin of 20.3% and adjusted EPS of $10.02, all records [14][58] - The company reported net income of $75 million for Q4 2020, a 67.2% increase year-over-year, and net income of $178 million for the full year, reflecting a 36% increase in diluted EPS compared to 2019 [58] Business Line Data and Key Metrics Changes - Corporate investment banking revenues for Q4 2020 were $256 million, up 45% sequentially, and $739 million for the full year, a 35% year-over-year increase [18][19] - Advisory services generated $169 million in revenues during Q4 2020, significantly up from Q3, with full-year revenues of $443 million, consistent with 2019 [20][21] - The equity brokerage business generated $40 million in Q4 2020, an 18% sequential increase, and $161 million for the year, marking an 84% year-over-year increase [33][35] Market Data and Key Metrics Changes - The municipal financing business generated $40 million in revenues for Q4 2020, a 51% increase from Q3 and a 28% increase year-over-year, with full-year revenues of $120 million, up 44% from 2019 [39][40] - The company completed 137 equity financings in 2020, raising $62 billion of capital, with a strong focus on the healthcare sector [25] - The fixed income business produced $53 million in revenues for Q4 2020, flat sequentially, and $196 million for the full year, benefiting from the Sandler acquisition [46] Company Strategy and Development Direction - The company aims to grow annual corporate investment banking revenues to over $1 billion in the coming years, with a focus on expanding its platform and capabilities [30][94] - The integration of Sandler O'Neill and the acquisition of TRS Advisors are expected to enhance the company's advisory and restructuring capabilities [12][28] - The company is focused on maintaining momentum in its equity and debt capital raising activities while investing in its corporate investment banking platform [27][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the advisory business, anticipating significant growth as market conditions improve and M&A activity accelerates [67][69] - The company noted strong demand for M&A driven by factors such as low financing rates and increased CEO confidence, with a robust pipeline across various industry verticals [23][90] - Management expects 2021 to start strong, although capital raising activity may moderate compared to 2020 [27][68] Other Important Information - The company approved a special annual cash dividend of $1.85 per share, resulting in a total dividend of $3.10 per share for fiscal year 2020, a 38% increase year-over-year [61] - The compensation ratio for Q4 2020 was 59.5%, lower than previous quarters, with expectations for a ratio near 62% in 2021 [51][52] - The company highlighted the importance of maintaining a disciplined approach to managing expenses while capitalizing on growth opportunities [54][60] Q&A Session Summary Question: Can M&A advisory acceleration offset potential deceleration in capital raising? - Management acknowledged the strong performance in advisory and expressed optimism for growth, while noting challenges in capital markets [67][69] Question: How much of the fixed income business strength was due to elevated volumes versus market-making positioning? - Management indicated that the strength was primarily driven by high volumes and favorable market conditions rather than positioning [71][73] Question: What is the outlook for excess capital and its deployment? - Management confirmed a healthy excess capital position and emphasized a focus on growth opportunities while considering dividends and share repurchases [78][79] Question: How does the backlog compare to prior periods? - Management stated that the current backlog is stronger than entering 2020, with optimism for healthcare and financial services M&A [88][90] Question: What are the top priorities for 2021? - Management highlighted the focus on growing average deal sizes in M&A and leveraging new capabilities from recent acquisitions [105]