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, 2024

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: 001-31720

PIPER SANDLER COMPANIES

(Exact Name of Registrant as specified in its Charter)

Delaware		30-0168701
(State or Other Jurisdiction of Incorporation or Organization)		(IRS Employer Identification No.)
800 Nicollet Mall, Suite 900
Minneapolis, Minnesota		55402
(Address of Principal Executive Offices)		(Zip Code)
(612)	303-6000
(Registrant's Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class	Trading Symbol	Name of Each Exchange On Which Registered
Common Stock, par value $0.01 per share	PIPR	The New York Stock Exchange

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.

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  ☑

As of April 30, 2024, the registrant had 17,699,038 shares of Common Stock outstanding.

Table of Contents

Part I. Financial Information

Item 1.	Financial Statements	3
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	33
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	54
Item 4.	Controls and Procedures	55

Part II. Other Information

Item 1.	Legal Proceedings	55
Item 1A.	Risk Factors	55
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	56
Item 3.	Defaults Upon Senior Securities	56
Item 4.	Mine Safety Disclosures	56
Item 5.	Other Information	56
Item 6.	Exhibits	57
	Signatures	58

Piper Sandler Companies | 2

Part I. Financial Information

Item 1. Financial Statements.

INDEX TO THE CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statements of Financial Condition		4
Consolidated Statements of Operations		5
Consolidated Statements of Comprehensive Income		6
Consolidated Statements of Changes in Shareholders' Equity		7
Consolidated Statements of Cash Flows		8
Notes to the Consolidated Financial Statements		9
Note 1	Organization and Basis of Presentation	9
Note 2	Summary of Significant Accounting Policies	9
Note 3	Recent Accounting Pronouncements	10
Note 4	Receivables from and Payables to Brokers, Dealers and Clearing Organizations	10
Note 5	Fair Value of Financial Instruments	11
Note 6	Financial Instruments and Other Inventory Positions	18
Note 7	Investments	20
Note 8	Variable Interest Entities	20
Note 9	Other Assets	21
Note 10	Short-Term Financing	22
Note 11	Legal Contingencies	22
Note 12	Shareholders' Equity	23
Note 13	Revenues and Business Information	24
Note 14	Compensation Plans	25
Note 15	Earnings Per Share	32
Note 16	Net Capital Requirements and Other Regulatory Matters	32

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Piper Sandler Companies

Consolidated Statements of Financial Condition

	March 31,		December 31,
	2024		2023
(Amounts in thousands, except share data)	(Unaudited)
Assets
Cash and cash equivalents	$	69,958	$	383,098
Receivables from brokers, dealers and clearing organizations	176,398		212,004
Financial instruments and other inventory positions owned:
Financial instruments and other inventory positions owned	118,753		341,780
Financial instruments and other inventory positions owned and pledged as collateral	323,474		92,777
Total financial instruments and other inventory positions owned	442,227		434,557
Investments (including noncontrolling interests of $234,167 and $211,096, respectively)	325,435		298,048
Fixed assets (net of accumulated depreciation and amortization of $95,534 and $91,378, respectively)	57,744		60,770
Right-of-use lease assets	67,335		69,387
Goodwill	301,760		301,760
Intangible assets (net of accumulated amortization of $152,848 and $150,487, respectively)	113,836		116,197
Net deferred income tax assets	138,519		179,207
Other assets	129,241		85,955
Total assets	$	1,822,453	$	2,140,983
Liabilities and Shareholders' Equity
Short-term financing	$	—	$	30,000
Payables to brokers, dealers and clearing organizations	3,383		979
Financial instruments and other inventory positions sold, but not yet purchased	158,245		148,980
Accrued compensation	160,741		486,145
Accrued lease liabilities	91,485		93,727
Other liabilities and accrued expenses	83,569		81,679
Total liabilities	497,423		841,510
Shareholders' equity:
Common stock, $0.01 par value:
Shares authorized: 100,000,000 at March 31, 2024 and December 31, 2023;
Shares issued: 19,553,656 at March 31, 2024 and 19,553,101 at December 31, 2023;
Shares outstanding: 15,642,422 at March 31, 2024 and 15,200,149 at December 31, 2023	195		195
Additional paid-in capital	987,195		988,136
Retained earnings	461,191		454,358
Less: Common stock held in treasury, at cost: 3,911,234 shares at March 31, 2024 and 4,352,952 shares at December 31, 2023	(347,156)		(356,297)
Accumulated other comprehensive loss	(850)		(894)
Total common shareholders' equity	1,100,575		1,085,498
Noncontrolling interests	224,455		213,975
Total shareholders' equity	1,325,030		1,299,473
Total liabilities and shareholders' equity	$	1,822,453	$	2,140,983

See Notes to the Consolidated Financial Statements

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Piper Sandler Companies

Consolidated Statements of Operations

(Unaudited)

	Three Months Ended
	March 31,
(Amounts in thousands, except per share data)	2024		2023
Revenues
Investment banking	$	230,523	$	184,404
Institutional brokerage	91,442		96,313
Interest income	8,306		8,712
Investment income	14,168		11,115
Total revenues	344,439		300,544
Interest expense	1,383		2,639
Net revenues	343,056		297,905
Non-interest expenses
Compensation and benefits	222,446		199,394
Outside services	12,422		12,126
Occupancy and equipment	16,036		15,728
Communications	13,229		14,311
Marketing and business development	10,763		10,052
Deal-related expenses	6,387		6,014
Trade execution and clearance	4,866		4,914
Intangible asset amortization	2,361		4,904
Other operating expenses	2,124		4,653
Total non-interest expenses	290,634		272,096
Income before income tax expense/(benefit)	52,422		25,809
Income tax expense/(benefit)	2,844		(7,637)
Net income	49,578		33,446
Net income attributable to noncontrolling interests	7,085		7,812
Net income attributable to Piper Sandler Companies	$	42,493	$	25,634
Earnings per common share
Basic	$	2.74	$	1.77
Diluted	$	2.43	$	1.49
Dividends declared per common share	$	1.60	$	1.85
Weighted average number of common shares outstanding
Basic	15,499		14,507
Diluted	17,504		17,182

See Notes to the Consolidated Financial Statements

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Piper Sandler Companies

Consolidated Statements of Comprehensive Income

(Unaudited)

	Three Months Ended
	March 31,
(Amounts in thousands)	2024		2023
Net income	$	49,578	$	33,446
Other comprehensive income, net of tax — Foreign currency translation adjustment	44		955
Comprehensive income	49,622		34,401
Comprehensive income attributable to noncontrolling interests	7,085		7,812
Comprehensive income attributable to Piper Sandler Companies	$	42,537	$	26,589

See Notes to the Consolidated Financial Statements

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Piper Sandler Companies

Consolidated Statements of Changes in Shareholders' Equity

(Unaudited)

										Accumulated		Total
	Common			Additional						Other		Common				Total
(Amounts in thousands,	Shares	Common		Paid-In		Retained		Treasury		Comprehensive		Shareholders'		Noncontrolling		Shareholders'
except share amounts)	Outstanding	Stock		Capital		Earnings		Stock		Loss		Equity		Interests		Equity
Balance at December 31, 2023	15,200,149	$	195	$	988,136	$	454,358	$	(356,297)	$	(894)	$	1,085,498	$	213,975	$	1,299,473
Net income	—	—		—		42,493		—		—		42,493		7,085		49,578
Dividends	—	—		—		(35,660)		—		—		(35,660)		—		(35,660)
Amortization/issuance of restricted stock (1)	—	—		60,185		—		—		—		60,185		—		60,185
Issuance of treasury shares for restricted stock vestings	730,695	—		(61,232)		—		61,232		—		—		—		—
Repurchase of common stock from employees	(288,977)	—		—		—		(52,091)		—		(52,091)		—		(52,091)
Shares reserved/issued for director compensation	555	—		106		—		—		—		106		—		106
Other comprehensive income	—	—		—		—		—		44		44		—		44
Fund capital contributions, net	—	—		—		—		—		—		—		3,395		3,395
Balance at March 31, 2024	15,642,422	$	195	$	987,195	$	461,191	$	(347,156)	$	(850)	$	1,100,575	$	224,455	$	1,325,030
Balance at December 31, 2022	13,673,064	$	195	$	1,044,719	$	453,311	$	(441,653)	$	(2,499)	$	1,054,073	$	199,955	$	1,254,028
Net income	—	—		—		25,634		—		—		25,634		7,812		33,446
Dividends	—	—		—		(50,861)		—		—		(50,861)		—		(50,861)
Amortization/issuance of restricted stock (1)	—	—		67,682		—		—		—		67,682		—		67,682
Issuance of treasury shares for restricted stock vestings	1,584,696	—		(121,284)		—		121,284		—		—		—		—
Repurchase of common stock from employees	(426,031)	—		—		—		(60,831)		—		(60,831)		—		(60,831)
Shares reserved/issued for director compensation	1,398	—		192		—		—		—		192		—		192
Other comprehensive income	—	—		—		—		—		955		955		—		955
Fund capital distributions, net	—	—		—		—		—		—		—		(5,048)		(5,048)
Balance at March 31, 2023	14,833,127	$	195	$	991,309	$	428,084	$	(381,200)	$	(1,544)	$	1,036,844	$	202,719	$	1,239,563

(1)Includes amortization of restricted stock issued in conjunction with the Company's acquisitions.

See Notes to the Consolidated Financial Statements

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Piper Sandler Companies

Consolidated Statements of Cash Flows

(Unaudited)

	Three Months Ended
	March 31,
(Amounts in thousands)	2024		2023
Operating Activities
Net income	$	49,578	$	33,446
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization of fixed assets	4,258		4,426
Deferred income taxes	40,688		(8,191)
Stock-based compensation	26,825		27,502
Amortization of intangible assets	2,361		4,904
Amortization of forgivable loans	4,825		2,614
Decrease/(increase) in operating assets:
Receivables from brokers, dealers and clearing organizations	35,606		173,604
Net financial instruments and other inventory positions owned	1,595		(64,989)
Investments	(27,387)		(8,019)
Other assets	(45,859)		(1,979)
Increase/(decrease) in operating liabilities:
Payables to brokers, dealers and clearing organizations	2,404		(603)
Accrued compensation	(291,830)		(362,236)
Other liabilities and accrued expenses	(250)		(2,385)
Net cash used in operating activities	(197,186)		(201,906)
Investing Activities
Purchases of fixed assets, net	(1,275)		(1,855)
Net cash used in investing activities	(1,275)		(1,855)
Financing Activities
Net change in short-term financing	(30,000)		—
Payment of cash dividend	(35,660)		(50,861)
Increase/(decrease) in noncontrolling interests	3,395		(5,048)
Repurchase of common stock	(52,091)		(60,831)
Net cash used in financing activities	(114,356)		(116,740)
Currency adjustment:
Effect of exchange rate changes on cash	(323)		845
Net decrease in cash and cash equivalents	(313,140)		(319,656)
Cash and cash equivalents at beginning of period	383,098		365,624
Cash and cash equivalents at end of period	$	69,958	$	45,968
Supplemental disclosure of cash flow information
Cash paid during the period for:
Interest	$	1,300	$	2,549
Income taxes	$	127	$	737

See Notes to the Consolidated Financial Statements

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Piper Sandler Companies

Notes to the Consolidated Financial Statements

(Unaudited)

NOTE 1 | ORGANIZATION AND BASIS OF PRESENTATION

Organization

Piper Sandler Companies is the parent company of Piper Sandler & Co. ("Piper Sandler"), a securities broker dealer and investment banking firm; Piper Sandler Ltd., a firm providing securities brokerage and mergers and acquisitions services in the United Kingdom ("U.K."); Piper Sandler Finance LLC, which facilitates corporate debt underwriting in conjunction with affiliated credit vehicles; Piper Sandler Investment Group Inc., PSC Capital Management LLC, PSC Capital Management II LLC and PSC Capital Management III LLC, entities providing alternative asset management services; Piper Sandler Hedging Services, LLC, an entity that assists clients with hedging strategies; Piper Sandler Financial Products Inc. and Piper Sandler Financial Products II Inc., entities that facilitate derivative transactions; and other immaterial subsidiaries.

Piper Sandler Companies and its subsidiaries (collectively, the "Company") operate in one reporting segment providing investment banking services and institutional sales, trading and research services. Investment banking services include financial advisory services, management of and participation in underwritings, and municipal financing activities. Revenues are generated through the receipt of advisory and financing fees. Institutional sales, trading and research services focus on the trading of equity and fixed income products with institutions, corporations, government and non-profit entities. Revenues are generated through commissions and sales credits earned on equity and fixed income institutional sales activities, net interest revenues on trading securities held in inventory, profits and losses from trading these securities, and fees for research services and corporate access offerings. Also, the Company has created alternative asset management funds in merchant banking and healthcare in order to invest firm capital and to manage capital from outside investors. The Company records gains and losses from investments in these funds and receives management and performance fees.

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles ("U.S. GAAP") for interim financial information and the rules and regulations of the Securities and Exchange Commission ("SEC"). Pursuant to this guidance, certain information and disclosures have been omitted that are included within the complete annual financial statements. Except as disclosed herein, there have been no material changes in the information reported in the financial statements and related disclosures in the Company's Annual Report on Form 10-K for the year ended December 31, 2023.

The consolidated financial statements include the accounts of Piper Sandler Companies, its wholly owned subsidiaries, and all other entities in which the Company has a controlling financial interest. Noncontrolling interests represent equity interests in consolidated entities that are not attributable, either directly or indirectly, to Piper Sandler Companies. Noncontrolling interests include the minority equity holders' proportionate share of the equity in the Company's alternative asset management funds. All material intercompany balances have been eliminated.

Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates and assumptions are based on the best information available, actual results could differ from those estimates.

NOTE 2 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2023 for a full description of the Company's significant accounting policies.

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Piper Sandler Companies

Notes to the Consolidated Financial Statements

(Unaudited)

NOTE 3 | RECENT ACCOUNTING PRONOUNCEMENTS

Future Adoption of New Applicable Accounting Standards

Improvements to Reportable Segment Disclosures

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, "Improvements to Reportable Segment Disclosures" ("ASU 2023-07"). This guidance improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for annual periods beginning after December 15, 2023 and interim periods within annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently assessing the impact of ASU 2023-07 on its financial statement disclosures.

Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU No. 2023-09, "Improvements to Income Tax Disclosures" ("ASU 2023-09"). This guidance enhances the annual income tax disclosure requirements by requiring disaggregated information related to the effective tax rate reconciliation and income taxes paid, as well as other disclosure requirements. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently assessing the impact of ASU 2023-09 on its financial statement disclosures.

NOTE 4 | RECEIVABLES FROM AND PAYABLES TO BROKERS, DEALERS AND CLEARING ORGANIZATIONS

	March 31,		December 31,
(Amounts in thousands)	2024		2023
Receivables from brokers, dealers and clearing organizations
Receivable from clearing organizations	$	157,997	$	199,143
Receivable from brokers and dealers	14,635		9,176
Other	3,766		3,685
Total receivables from brokers, dealers and clearing organizations	$	176,398	$	212,004
Payables to brokers, dealers and clearing organizations
Payable to brokers and dealers	$	3,383	$	979
Total payables to brokers, dealers and clearing organizations	$	3,383	$	979

Under the Company's fully disclosed clearing agreement, all of its securities inventories with the exception of convertible securities, and all of its customer activities are held by or cleared through Pershing LLC ("Pershing"). The Company has established an arrangement to obtain financing from Pershing related to the majority of its trading activities. The Company also has a clearing arrangement with bank financing related to its convertible securities inventories. Financing under these arrangements is secured primarily by securities, and collateral limitations could reduce the amount of funding available under these arrangements. The funding is at their discretion and could be denied. The Company's clearing arrangement activities are recorded net of trading activity. The Company's fully disclosed clearing agreement includes a covenant requiring Piper Sandler to maintain excess net capital of $120 million.

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Piper Sandler Companies

Notes to the Consolidated Financial Statements

(Unaudited)

NOTE 5 | FAIR VALUE OF FINANCIAL INSTRUMENTS

Based on the nature of the Company's business and its role as a "dealer" in the securities industry or as a manager of alternative asset management funds, the fair values of its financial instruments are determined internally. The Company's processes are designed to ensure that the fair values used for financial reporting are based on observable inputs wherever possible. In the event that observable inputs are not available, unobservable inputs are developed based on an evaluation of all relevant empirical market data, including prices evidenced by market transactions, interest rates, credit spreads, volatilities and correlations and other security-specific information. Valuation adjustments related to illiquidity or counterparty credit risk are also considered. In estimating fair value, the Company may utilize information provided by third-party pricing vendors to corroborate internally-developed fair value estimates.

The Company employs specific control processes to determine the reasonableness of the fair value of its financial instruments. The Company's processes are designed to ensure that the internally-estimated fair values are accurately recorded and that the data inputs and the valuation techniques used are appropriate, consistently applied, and that the assumptions are reasonable and consistent with the objective of determining fair value. Individuals outside of the trading departments perform independent pricing verification reviews as of each reporting date. The Company has established parameters which set forth when the fair value of securities is independently verified. The selection parameters are generally based upon the type of security, the level of estimation risk of a security, the materiality of the security to the Company's consolidated financial statements, changes in fair value from period to period, and other specific facts and circumstances of the Company's securities portfolio. In evaluating the initial internally-estimated fair values made by the Company's traders, the nature and complexity of securities involved (e.g., term, coupon, collateral, and other key drivers of value), level of market activity for securities, and availability of market data are considered. The independent price verification procedures include, but are not limited to, analysis of trade data (both internal and external where available), corroboration to the valuation of positions with similar characteristics, risks and components, or comparison to an alternative pricing source, such as a discounted cash flow model. The Company's valuation committees, comprised of members of senior management and risk management, provide oversight and overall responsibility for the internal control processes and procedures related to fair value measurements.

The following is a description of the valuation techniques used to measure fair value.

Cash Equivalents

Cash equivalents include highly liquid investments with original maturities of 90 days or less. Actively traded money market funds are measured at their net asset value and classified as Level I.

Financial Instruments and Other Inventory Positions

The Company records financial instruments and other inventory positions owned and financial instruments and other inventory positions sold, but not yet purchased at fair value on the consolidated statements of financial condition with unrealized gains and losses reflected on the consolidated statements of operations.

Equity Securities

Exchange traded equity securities are valued based on quoted prices from the exchange for identical assets or liabilities as of the period-end date. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level I. Non-exchange traded equity securities are measured primarily using broker quotations, prices observed for recently executed market transactions and internally-developed fair value estimates based on observable inputs and are categorized within Level II of the fair value hierarchy.

Convertible Securities

Convertible securities are valued based on observable trades, when available, and therefore are generally categorized as Level II.

Corporate Fixed Income Securities

Fixed income securities include corporate bonds which are valued based on recently executed market transactions of comparable size, internally-developed fair value estimates based on observable inputs, or broker quotations. Accordingly, these corporate bonds are categorized as Level II.

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Piper Sandler Companies

Notes to the Consolidated Financial Statements

(Unaudited)

Taxable Municipal Securities

Taxable municipal securities are valued using recently executed observable trades or market price quotations and therefore are generally categorized as Level II.

Tax-Exempt Municipal Securities

Tax-exempt municipal securities are valued using recently executed observable trades or market price quotations and therefore are generally categorized as Level II. Certain illiquid tax-exempt municipal securities are valued using market data for comparable securities (e.g., maturity and sector) and management judgment to infer an appropriate current yield or other model-based valuation techniques deemed appropriate by management based on the specific nature of the individual security and therefore are categorized as Level III.

Short-Term Municipal Securities

Short-term municipal securities include variable rate demand notes and other short-term municipal securities. Variable rate demand notes and other short-term municipal securities are valued using recently executed observable trades or market price quotations and therefore are generally categorized as Level II.

Asset-Backed Securities

Asset-backed securities are valued using recently executed observable trades, when available, and therefore are generally categorized as Level II. Certain asset-backed securities are valued using models where inputs to the model are directly observable in the market, or can be derived principally from or corroborated by observable market data. Accordingly, these asset-backed securities are categorized as Level II.

U.S. Government Agency Securities

U.S. government agency securities include agency debt bonds and mortgage bonds. Agency debt bonds are valued by using either direct price quotes or price quotes for comparable bond securities and are categorized as Level II. Mortgage bonds include bonds secured by mortgages, mortgage pass-through securities, agency collateralized mortgage-obligation ("CMO") securities and agency interest-only securities. Mortgage pass-through securities, CMO securities and interest-only securities are valued using recently executed observable trades or other observable inputs, such as prepayment speeds and therefore are generally categorized as Level II. Mortgage bonds are valued using observable market inputs, such as market yields on spreads over U.S. treasury securities, or models based upon prepayment expectations. These securities are categorized as Level II.

U.S. Government Securities

U.S. government securities include highly liquid U.S. treasury securities which are generally valued using quoted market prices and therefore are categorized as Level I. The Company does not transact in securities of countries other than the U.S. government.

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Piper Sandler Companies

Notes to the Consolidated Financial Statements

(Unaudited)

Derivative Contracts

Derivative contracts include interest rate swaps, interest rate locks, and U.S. treasury bond futures. These instruments derive their value from underlying assets, reference rates, indices or a combination of these factors. The majority of the Company's interest rate derivative contracts, including both interest rate swaps and interest rate locks, are valued using market standard pricing models based on the net present value of estimated future cash flows. The valuation models used do not involve material subjectivity as the methodologies do not entail significant judgment and the pricing inputs are market observable, including contractual terms, yield curves and measures of volatility. These instruments are classified as Level II within the fair value hierarchy. Certain interest rate locks transact in less active markets and are valued using valuation models that include the previously mentioned observable inputs and certain unobservable inputs that require significant judgment, such as the premium over the Municipal Market Data ("MMD") curve. These instruments are classified as Level III.

Investments

The Company's investments valued at fair value include equity investments in private companies and mutual funds held by a grantor trust for the Company's nonqualified deferred compensation plan. Investments in private companies are valued based on an assessment of each underlying security, considering rounds of financing, the financial condition and operating results of the private company, third-party transactions and market-based information, including comparable company transactions, trading multiples (e.g., multiples of revenue and earnings before interest, taxes, depreciation and amortization ("EBITDA")), discounted cash flow analyses and changes in market outlook, among other factors. These securities are categorized based on the lowest level of input that is significant to the fair value measurement and therefore are categorized as Level II or Level III. Certain underlying securities, as well as investments in mutual funds, are valued based on quoted prices from the exchange for identical assets as of the period-end date. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level I. See Note 8 and Note 14 to our consolidated financial statements for additional information about the Company's nonqualified deferred compensation plan.

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Piper Sandler Companies

Notes to the Consolidated Financial Statements

(Unaudited)

The following table summarizes the valuation of the Company's financial instruments by pricing observability levels defined in FASB Accounting Standards Codification Topic 820, "Fair Value Measurement" ("ASC 820") as of March 31, 2024:

							Counterparty
							and Cash
							Collateral
(Amounts in thousands)	Level I		Level II		Level III		Netting (1)		Total
Assets
Financial instruments and other inventory positions owned:
Corporate securities:
Equity securities	$	5,272	$	931	$	—	$	—	$	6,203
Convertible securities	—		139,126		—		—		139,126
Fixed income securities	—		4,633		—		—		4,633
Municipal securities:
Taxable securities	—		32,274		—		—		32,274
Tax-exempt securities	—		127,843		276		—		128,119
Short-term securities	—		23,846		—		—		23,846
Asset-backed securities	—		35,276		—		—		35,276
U.S. government agency securities	—		59,354		—		—		59,354
U.S. government securities	3,725		—		—		—		3,725
Derivative contracts	—		41,295		2,754		(34,378)		9,671
Total financial instruments and other inventory positions owned	8,997		464,578		3,030		(34,378)		442,227
Cash equivalents	31,753		—		—		—		31,753
Investments at fair value (2)	75,566		20,000		217,693		—		313,259
Total assets	$	116,316	$	484,578	$	220,723	$	(34,378)	$	787,239
Liabilities
Financial instruments and other inventory positions sold, but not yet purchased:
Corporate securities:
Equity securities	$	78,867	$	—	$	—	$	—	$	78,867
Fixed income securities	—		1,638		—		—		1,638
U.S. government agency securities	—		26,286		—		—		26,286
U.S. government securities	47,824		—		—		—		47,824
Derivative contracts	—		35,799		4,571		(36,740)		3,630
Total financial instruments and other inventory positions sold, but not yet purchased	$	126,691	$	63,723	$	4,571	$	(36,740)	$	158,245

(1)Represents cash collateral and the impact of netting on a counterparty basis. The Company had no securities posted as collateral to its counterparties.

(2)Includes noncontrolling interests of $234.2 million attributable to unrelated third-party ownership in consolidated alternative asset management funds.

Piper Sandler Companies | 14

Piper Sandler Companies

Notes to the Consolidated Financial Statements

(Unaudited)

The following table summarizes the valuation of the Company's financial instruments by pricing observability levels defined in ASC 820 as of December 31, 2023:

							Counterparty
							and Cash
							Collateral
(Amounts in thousands)	Level I		Level II		Level III		Netting (1)		Total
Assets
Financial instruments and other inventory positions owned:
Corporate securities:
Equity securities	$	388	$	—	$	—	$	—	$	388
Convertible securities	—		131,375		—		—		131,375
Fixed income securities	—		1,645		—		—		1,645
Municipal securities:
Taxable securities	—		25,744		—		—		25,744
Tax-exempt securities	—		135,886		2,869		—		138,755
Short-term securities	—		7,122		—		—		7,122
Asset-backed securities	—		8,149		—		—		8,149
U.S. government agency securities	—		104,418		—		—		104,418
U.S. government securities	5,895		—		—		—		5,895
Derivative contracts	—		52,611		5,834		(47,379)		11,066
Total financial instruments and other inventory positions owned	6,283		466,950		8,703		(47,379)		434,557
Cash equivalents	343,856		—		—		—		343,856
Investments at fair value (2)	61,601		—		224,280		—		285,881
Total assets	$	411,740	$	466,950	$	232,983	$	(47,379)	$	1,064,294
Liabilities
Financial instruments and other inventory positions sold, but not yet purchased:
Corporate securities:
Equity securities	$	53,857	$	—	$	—	$	—	$	53,857
Fixed income securities	—		2,230		—		—		2,230
U.S. government agency securities	—		48,268		—		—		48,268
U.S. government securities	40,437		—		—		—		40,437
Derivative contracts	—		47,032		7,962		(50,806)		4,188
Total financial instruments and other inventory positions sold, but not yet purchased	$	94,294	$	97,530	$	7,962	$	(50,806)	$	148,980

(1)Represents cash collateral and the impact of netting on a counterparty basis. The Company had no securities posted as collateral to its counterparties.

(2)Includes noncontrolling interests of $211.1 million attributable to unrelated third-party ownership in consolidated alternative asset management funds.

The carrying values of the Company's cash, receivables and payables either from or to brokers, dealers and clearing organizations, and short-term financings approximate fair value due to either their liquid or short-term nature.

Piper Sandler Companies | 15

Piper Sandler Companies

Notes to the Consolidated Financial Statements

(Unaudited)

The Company's Level III assets were $220.7 million (including noncontrolling interests of $170.9 million) and $233.0 million (including noncontrolling interests of $177.0 million), or 28.0 percent and 21.9 percent of financial instruments measured at fair value at March 31, 2024 and December 31, 2023, respectively. There were $13.2 million and $14.7 million of transfers of financial assets out of Level III for the three months ended March 31, 2024 and 2023, respectively, primarily due to unobservable inputs becoming observable. At March 31, 2024, the Company's Level I investments at fair value included $50.2 million of equity securities subject to contractual sale restrictions, of which $5.2 million will expire in the second quarter of 2024 and $8.6 million will expire in the third quarter of 2024. The sales restrictions on the remaining equity securities are in effect during certain trading windows so long as the securities are owned.

The following table summarizes the changes in fair value associated with Level III financial instruments held at the beginning or end of the periods presented:

	Level III
	Assets						Liabilities
(Amounts in thousands)	Tax-Exempt Municipal Securities		Derivative Contracts		Investments at Fair Value		Derivative Contracts
Balance at December 31, 2023	$	2,869	$	5,834	$	224,280	$	7,962
Purchases	—		—		12,000		—
Sales	(1,901)		—		—		—
Settlements	—		(2,842)		—		(1,434)
Transfers in	—		—		—		—
Transfers out	—		—		(13,219)		—
Total realized and unrealized gains/(losses)	(692)		(238)		(5,368)		(1,957)
Balance at March 31, 2024	$	276	$	2,754	$	217,693	$	4,571
Balance at December 31, 2022	$	3,887	$	4,756	$	191,845	$	1,082
Purchases	—		—		12,948		—
Sales	—		—		(6,747)		—
Settlements	—		(2,353)		—		140
Transfers in	—		—		—		—
Transfers out	—		—		(14,691)		—
Total realized and unrealized gains/(losses)	9		(1,961)		18,088		2,555
Balance at March 31, 2023	$	3,896	$	442	$	201,443	$	3,777
Unrealized gains/(losses) for assets/liabilities held at:
March 31, 2024	$	9	$	227	$	(834)	$	(288)
March 31, 2023	$	9	$	(239)	$	9,066	$	2,850

Realized and unrealized gains/(losses) related to financial instruments, with the exception of customer matched-book derivatives, are reported in institutional brokerage on the consolidated statements of operations. Realized and unrealized gains/(losses) related to customer matched-book derivatives are reported in investment banking. Realized and unrealized gains/(losses) related to investments are principally reported in investment income on the consolidated statements of operations.

Piper Sandler Companies | 16

Piper Sandler Companies

Notes to the Consolidated Financial Statements

(Unaudited)

The following table summarizes quantitative information about the significant unobservable inputs used in the fair value measurement of the Company's Level III financial instruments as of March 31, 2024:

	Valuation			Weighted
	Technique	Unobservable Input	Range	Average (1)
Assets
Tax-exempt municipal securities	Discounted cash flow	Expected recovery rate (% of par) (3)	0 - 25%	13.4%
Derivative contracts	Discounted cash flow	Premium over the MMD curve in basis points ("bps") (3)	12 - 44 bps	17.9 bps
Investments at fair value (2)	Market approach	Revenue multiple (3)	0 - 10 times	5.4 times
		EBITDA multiple (3)	11 - 17 times	14.4 times
		Market comparable valuation multiple (3)	0 - 2 times	1.3 times
	Discounted cash flow	Discount rate (4)	19 - 25%	21.0%
Liabilities
Derivative contracts	Discounted cash flow	Premium over the MMD curve in bps (4)	0 - 46 bps	13.6 bps

(1)Unobservable inputs were weighted by the relative fair value of the financial instruments.

(2)As of March 31, 2024, the Company had $217.7 million of Level III investments at fair value, of which $43.9 million, or 20.2 percent, was valued based on a recent round of independent financing.

(3)There is uncertainty in the determination of fair value. Significant increase/(decrease) in the unobservable input in isolation would have resulted in a significantly higher/(lower) fair value measurement.

(4)There is uncertainty in the determination of fair value. Significant increase/(decrease) in the unobservable input in isolation would have resulted in a significantly lower/(higher) fair value measurement.

Piper Sandler Companies | 17

Piper Sandler Companies

Notes to the Consolidated Financial Statements

(Unaudited)

NOTE 6 | FINANCIAL INSTRUMENTS AND OTHER INVENTORY POSITIONS

	March 31,		December 31,
(Amounts in thousands)	2024		2023
Financial instruments and other inventory positions owned
Corporate securities:
Equity securities	$	6,203	$	388
Convertible securities	139,126		131,375
Fixed income securities	4,633		1,645
Municipal securities:
Taxable securities	32,274		25,744
Tax-exempt securities	128,119		138,755
Short-term securities	23,846		7,122
Asset-backed securities	35,276		8,149
U.S. government agency securities	59,354		104,418
U.S. government securities	3,725		5,895
Derivative contracts	9,671		11,066
Total financial instruments and other inventory positions owned	$	442,227	$	434,557
Financial instruments and other inventory positions sold, but not yet purchased
Corporate securities:
Equity securities	$	78,867	$	53,857
Fixed income securities	1,638		2,230
U.S. government agency securities	26,286		48,268
U.S. government securities	47,824		40,437
Derivative contracts	3,630		4,188
Total financial instruments and other inventory positions sold, but not yet purchased	$	158,245	$	148,980

At March 31, 2024 and December 31, 2023, financial instruments and other inventory positions owned in the amount of $323.5 million and $92.8 million, respectively, had been pledged as collateral for short-term financing arrangements.

Financial instruments and other inventory positions sold, but not yet purchased represent obligations of the Company to deliver the specified security at the contracted price, thereby creating a liability to purchase the security in the market at prevailing prices. The Company is obligated to acquire the securities sold short at prevailing market prices, which may exceed the amount reflected on the consolidated statements of financial condition. The Company economically hedges changes in the market value of its financial instruments and other inventory positions owned using inventory positions sold, but not yet purchased, interest rate derivatives, U.S. treasury bond futures and options, and equity option contracts.

Piper Sandler Companies | 18

Piper Sandler Companies

Notes to the Consolidated Financial Statements

(Unaudited)

Derivative Contract Financial Instruments

Customer Matched-Book Derivatives

The Company enters into interest rate derivative contracts in a principal capacity as a dealer to satisfy the financial needs of its customers. The Company simultaneously enters into an interest rate derivative contract with a third party for the same notional amount to hedge the interest rate and credit risk of the initial client interest rate derivative contract. In certain limited instances, the Company has only hedged interest rate risk with a third party, and retains uncollateralized credit risk as described below. These instruments use rates based upon the Secured Overnight Financing Rate ("SOFR") index, the MMD index or the Securities Industry and Financial Markets Association ("SIFMA") index. Similarly, the Company enters into a limited number of credit default swap contracts to facilitate customer transactions. These instruments use rates based upon the Commercial Mortgage Backed Securities ("CMBX") index.

Trading Securities Derivatives

The Company enters into interest rate derivative contracts and uses U.S. treasury bond futures and options to hedge interest rate and market value risks primarily associated with its fixed income securities. These instruments use rates based upon the MMD or SOFR indices. The Company also enters into equity option contracts to hedge market value risk associated with its convertible securities.

Derivatives are reported on a net basis by counterparty (i.e., the net payable or receivable for derivative assets and liabilities for a given counterparty) when a legal right of offset exists and on a net basis by cross product when applicable provisions are stated in master netting agreements. Cash collateral received or paid is netted on a counterparty basis, provided a legal right of offset exists. The total absolute notional contract amount, representing the absolute value of the sum of gross long and short derivative contracts, provides an indication of the volume of the Company's derivative activity and does not represent gains and losses. The following table presents the gross fair market value and the total absolute notional contract amount of the Company's outstanding derivative instruments, prior to counterparty netting, by asset or liability position:

	March 31, 2024						December 31, 2023
(Amounts in thousands)	Derivative		Derivative		Notional		Derivative		Derivative		Notional
Derivative Category	Assets (1)		Liabilities (2)		Amount		Assets (1)		Liabilities (2)		Amount
Interest rate:
Customer matched-book	$	41,233	$	36,081	$	1,363,904	$	54,676	$	49,293	$	1,356,924
Trading securities	2,816		4,289		179,850		3,769		5,701		196,250
	$	44,049	$	40,370	$	1,543,754	$	58,445	$	54,994	$	1,553,174

(1)Derivative assets are included within financial instruments and other inventory positions owned on the consolidated statements of financial condition.

(2)Derivative liabilities are included within financial instruments and other inventory positions sold, but not yet purchased on the consolidated statements of financial condition.

The Company's derivative contracts do not qualify for hedge accounting; therefore, unrealized gains and losses are recorded on the consolidated statements of operations. The gains and losses on the related economically hedged inventory positions are not disclosed below as they are not in qualifying hedging relationships. The following table presents the Company's unrealized gains/(losses) on derivative instruments:

		Three Months Ended
(Amounts in thousands)		March 31,
Derivative Category	Operations Category	2024		2023
Interest rate derivative contract	Investment banking	$	(84)	$	172
Interest rate derivative contract	Institutional brokerage	311		(7,009)
Equity option derivative contract	Institutional brokerage	—		(11)
		$	227	$	(6,848)

Piper Sandler Companies | 19

Piper Sandler Companies

Notes to the Consolidated Financial Statements

(Unaudited)

Credit risk associated with the Company's derivatives is the risk that a derivative counterparty will not perform in accordance with the terms of the applicable derivative contract. Credit exposure associated with the Company's derivatives is driven by uncollateralized market movements in the fair value of the contracts with counterparties and is monitored regularly by the Company's financial risk committee. The Company considers counterparty credit risk in determining derivative contract fair value. The majority of the Company's derivative contracts are substantially collateralized by its counterparties, who are major financial institutions. The Company has a limited number of counterparties who are not required to post collateral. Based on market movements, the uncollateralized amounts representing the fair value of a derivative contract can become material, exposing the Company to the credit risk of these counterparties. As of March 31, 2024, the Company had $5.0 million of uncollateralized credit exposure with these counterparties (notional contract amount of $78.3 million), including $4.6 million of uncollateralized credit exposure with one counterparty.

NOTE 7 | INVESTMENTS

	March 31,		December 31,
(Amounts in thousands)	2024		2023
Investments at fair value	$	313,259	$	285,881
Investments at cost	281		281
Investments accounted for under the equity method	11,895		11,886
Total investments	325,435		298,048
Less: Investments attributable to noncontrolling interests (1)	(234,167)		(211,096)
Total investments attributable to Piper Sandler Companies	$	91,268	$	86,952

(1)Noncontrolling interests are attributable to unrelated third-party ownership in consolidated alternative asset management funds.

At March 31, 2024, investments carried on a cost basis had an estimated fair market value of $0.3 million. Because valuation estimates were based upon management's judgment, investments carried at cost would be categorized as Level III assets in the fair value hierarchy, if they were carried at fair value.

Investments accounted for under the equity method include general and limited partnership interests. The carrying value of these investments is based on the investment vehicle's net asset value. The net assets of investment partnerships consist of investments in both marketable and non-marketable securities. The underlying investments held by such partnerships are valued based on the estimated fair value determined by management in the Company's capacity as general partner or investor and, in the case of investments in unaffiliated investment partnerships, are based on financial statements prepared by the unaffiliated general partners.

NOTE 8 | VARIABLE INTEREST ENTITIES ("VIEs")

The Company has investments in and/or acts as the managing partner of various partnerships and limited liability companies. These entities were established for the purpose of investing in securities of public or private companies, and were initially financed through the capital commitments or seed investments of the members.

VIEs are entities in which equity investors lack the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities. The determination as to whether an entity is a VIE is based on the structure and nature of each entity. The Company also considers other characteristics such as the power through voting rights or similar rights to direct the activities of an entity that most significantly impact the entity's economic performance and how the entity is financed.

The Company is required to consolidate all VIEs for which it is considered to be the primary beneficiary. The determination as to whether the Company is considered to be the primary beneficiary is based on whether the Company has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE.

Piper Sandler Companies | 20

Piper Sandler Companies

Notes to the Consolidated Financial Statements

(Unaudited)

Consolidated VIEs

The Company's consolidated VIEs at March 31, 2024 included certain alternative asset management funds in which the Company has an investment and, as the managing partner, is deemed to have both the power to direct the most significant activities of the funds and the right to receive benefits (or the obligation to absorb losses) that could potentially be significant to these funds.

The following table presents information about the carrying value of the assets and liabilities of the VIEs that are consolidated by the Company and included on the consolidated statements of financial condition at March 31, 2024. The assets can only be used to settle the liabilities of the respective VIE, and the creditors of the VIEs do not have recourse to the general credit of the Company. These VIEs have a combined $56.0 million of bank line financing available with interest rates based on SOFR plus an applicable margin. The assets and liabilities are presented prior to consolidation, and thus a portion of these assets and liabilities is eliminated in consolidation.

	Alternative Asset
(Amounts in thousands)	Management Funds
Assets
Investments	$	292,161
Other assets	131
Total assets	$	292,292
Liabilities
Other liabilities and accrued expenses	$	10,931
Total liabilities	$	10,931

The Company has investments in a grantor trust which was established as part of a nonqualified deferred compensation plan. The Company is the primary beneficiary of the grantor trust. Accordingly, the assets and liabilities of the grantor trust are consolidated by the Company on the consolidated statements of financial condition. See Note 14 for additional information on the Company's nonqualified deferred compensation plan.

Nonconsolidated VIEs

The Company determined it is not the primary beneficiary of certain VIEs and, accordingly, does not consolidate them. These VIEs had net assets approximating $1.1 billion at March 31, 2024 and December 31, 2023. The Company's exposure to loss from these VIEs is $12.2 million, which is the carrying value of its capital contributions recorded in investments on the consolidated statements of financial condition at March 31, 2024. The Company had no liabilities related to these VIEs at March 31, 2024 and December 31, 2023. Furthermore, the Company has not provided financial or other support to these VIEs that it was not previously contractually required to provide as of March 31, 2024.

NOTE 9 | OTHER ASSETS

	March 31,		December 31,
(Amounts in thousands)	2024		2023
Fee receivables	$	42,569	$	27,765
Forgivable employee loans	12,685		15,771
Prepaid expenses	17,444		22,396
Income tax receivables	43,893		5,939
Other	12,650		14,084
Total other assets	$	129,241	$	85,955

Piper Sandler Companies | 21

Piper Sandler Companies

Notes to the Consolidated Financial Statements

(Unaudited)

NOTE 10 | SHORT-TERM FINANCING

The Company has an unsecured $100 million revolving credit facility with U.S. Bank N.A. The credit agreement will terminate on December 18, 2026, unless otherwise terminated. The interest rate is variable and based on either the federal funds rate or prime plus an applicable margin. This credit facility includes customary events of default and covenants that, among other things, require the Company's U.S. broker dealer subsidiary to maintain a minimum regulatory net capital of $120 million, limit the Company's leverage ratio, require maintenance of a minimum ratio of operating cash flow to fixed charges, and impose certain limitations on the Company's ability to make acquisitions and make payments on its capital stock. At March 31, 2024, there were no advances against this credit facility. At December 31, 2023, there were $30.0 million of advances against this credit facility, with a weighted average interest rate of 5.33 percent.

The Company's committed short-term bank line financing at March 31, 2024 consisted of a one-year $50 million committed revolving credit facility with U.S. Bank N.A., which has been renewed annually in the fourth quarter of each year since 2008. Advances under this facility are secured by certain marketable securities. The interest rate is variable and based on the federal funds rate plus an applicable margin. The facility includes a covenant that requires the Company's U.S. broker dealer subsidiary to maintain a minimum regulatory net capital of $120 million, and the unpaid principal amount of all advances under this facility will be due on December 6, 2024. The Company pays a nonrefundable commitment fee on the unused portion of the facility on a quarterly basis. At March 31, 2024 and December 31, 2023, the Company had no advances against this line of credit.

NOTE 11 | LEGAL CONTINGENCIES

The Company has been named as a defendant in various legal actions, including complaints and litigation and arbitration claims, arising from its business activities. Such actions include claims related to securities brokerage and investment banking activities, and certain class actions that primarily allege violations of securities laws and seek unspecified damages, which could be substantial. Also, the Company is involved from time to time in investigations and proceedings by governmental agencies and self-regulatory organizations ("SROs") which could result in adverse judgments, settlements, penalties, fines or other relief.

The Company accrues for potential losses resulting from pending and potential legal actions, investigations and regulatory proceedings when such losses are probable and reasonably estimable. In many cases, however, it is inherently difficult to determine whether any loss is probable or even possible or to estimate the amount or range of any potential loss, particularly where proceedings may be in relatively early stages or where plaintiffs are seeking substantial or indeterminate damages. Matters frequently need to develop before a probability of loss can be determined or range of loss can reasonably be estimated. Given uncertainties regarding the timing, scope, volume and outcome of pending and potential legal actions, investigations and regulatory proceedings and other factors, the amounts of accruals and ranges of reasonably possible losses are difficult to determine and of necessity subject to future revision. Subject to the foregoing, management of the Company believes, based on currently available information, after consultation with outside legal counsel and taking into account any prior accruals, that pending legal actions, investigations and regulatory proceedings will be resolved with no material adverse effect on the financial condition, results of operations or cash flows of the Company, except as described in the next paragraph.

The SEC and the Commodity Futures Trading Commission (the "CFTC") are conducting investigations of the Company regarding compliance with recordkeeping requirements for business-related communications sent over unapproved electronic messaging channels. The SEC and the CFTC have brought numerous enforcement actions relating to recordkeeping practices and are currently conducting numerous similar investigations of other broker dealers and registered investment advisors. The Company is cooperating with the investigations. The Company has engaged in settlement negotiations with the SEC and the CFTC to resolve these investigations and anticipates that the resolution will include the payment of civil money penalties. As of March 31, 2024, the Company has accrued $16.5 million as estimated civil penalties related to these investigations, and recorded a $3.5 million reversal of other operating expenses for the three months ended March 31, 2024.

Piper Sandler Companies | 22

Piper Sandler Companies

Notes to the Consolidated Financial Statements

(Unaudited)

If during any period a potential adverse contingency becomes probable or is resolved for an amount in excess of the established accrual, the results of operations and cash flows in that period and the financial condition as of the end of that period could be materially adversely affected. At March 31, 2024, the high end of the range of reasonably estimable losses in excess of amounts accrued was approximately $0.5 million. In addition, there can be no assurance that material losses will not be incurred from claims that have not yet been brought to the Company's attention or are not yet determined to be reasonably possible.

NOTE 12 | SHAREHOLDERS' EQUITY

Dividends

The Company's current dividend policy is intended to return a metric based on fiscal year net income to its shareholders. The Company's board of directors determines the declaration and payment of dividends and is free to change the Company's dividend policy at any time.

During the three months ended March 31, 2024, the Company declared and paid both a quarterly and a special cash dividend on its common stock of $0.60 and $1.00 per share, respectively. The special cash dividend related to the Company's fiscal year 2023 results. Total dividends paid, including accrued forfeitable dividends paid on restricted stock vestings, were $35.7 million for the three months ended March 31, 2024.

On April 26, 2024, the board of directors declared a quarterly cash dividend on its common stock of $0.60 per share to be paid on June 7, 2024, to shareholders of record as of the close of business on May 24, 2024.

Share Repurchases

The Company purchases shares of common stock pursuant to share repurchase programs authorized by the Company's board of directors. The Company also purchases shares of common stock from restricted stock award recipients upon the award vesting as recipients sell shares to meet their employment tax obligations.

The following table summarizes the repurchase programs authorized by the Company's board of directors:

Effective Date	Authorized Amount	Expiration Date	Remaining Authorization at March 31, 2024
May 6, 2022	$150.0 million	December 31, 2024	$138.2 million
January 1, 2022	$150.0 million	December 31, 2023	$—

During the three months ended March 31, 2024 and 2023, the Company did not repurchase shares of common stock related to its share repurchase programs.

The following table summarizes the Company's share repurchase activity from employees related to employment tax obligations:

	Three Months Ended
	March 31,
	2024		2023
Common shares repurchased	288,977		426,031
Aggregate purchase price (in millions)	$	52.1	$	60.8
Average price per share	$	180.26	$	142.79

Issuance of Shares

The Company issues common shares out of treasury stock as a result of employee restricted share vesting and exercise transactions as discussed in Note 14. During the three months ended March 31, 2024 and 2023, the Company issued 730,695 shares and 1,584,696 shares, respectively, related to these obligations.

Piper Sandler Companies | 23

Piper Sandler Companies

Notes to the Consolidated Financial Statements

(Unaudited)

Noncontrolling Interests

The consolidated financial statements include the accounts of Piper Sandler Companies, its wholly owned subsidiaries and other entities in which the Company has a controlling financial interest. Noncontrolling interests represent equity interests in consolidated entities that are not attributable, either directly or in