Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-31720 | |
Entity Registrant Name | PIPER SANDLER COMPANIES | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 30-0168701 | |
Entity Address, Address Line One | 800 Nicollet Mall, Suite 900 | |
Entity Address, City or Town | Minneapolis | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55402 | |
City Area Code | (612) | |
Local Phone Number | 303-6000 | |
Title of Each Class | Common Stock, par value $0.01 per share | |
Trading Symbol | PIPR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 17,878,195 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001230245 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 571,068 | $ 507,935 |
Receivables from brokers, dealers and clearing organizations | 225,734 | 221,491 |
Financial instruments and other inventory positions owned | 333,200 | 270,849 |
Financial instruments and other inventory positions owned and pledged as collateral | 117,615 | 130,703 |
Total financial instruments and other inventory positions owned | 450,815 | 401,552 |
Fixed assets (net of accumulated depreciation and amortization of $74,916 and $74,883, respectively) | 50,604 | 43,812 |
Goodwill | 227,508 | 227,508 |
Intangible assets (net of accumulated amortization of $108,152 and $85,592, respectively) | 127,298 | 149,858 |
Investments (including noncontrolling interests of $136,278 and $94,900, respectively) | 235,213 | 183,179 |
Net deferred income tax assets | 133,690 | 104,219 |
Right-of-use lease asset | 72,011 | 82,543 |
Other assets | 100,212 | 75,043 |
Total assets | 2,194,153 | 1,997,140 |
Liabilities and Shareholders' Equity | ||
Long-term financing | 175,000 | 195,000 |
Payables to brokers, dealers and clearing organizations | 8,590 | 18,591 |
Financial instruments and other inventory positions sold, but not yet purchased | 131,549 | 151,030 |
Accrued compensation | 611,580 | 522,412 |
Accrued lease liability | 91,052 | 99,478 |
Other liabilities and accrued expenses | 62,286 | 84,547 |
Total liabilities | 1,080,057 | 1,071,058 |
Shareholders’ equity: | ||
Common stock, $0.01 par value: Shares authorized: 100,000,000 at September 30, 2021 and December 31, 2020; Shares issued: 19,539,222 at September 30, 2021 and 19,533,547 at December 31, 2020; Shares outstanding: 14,114,709 at September 30, 2021 and 13,776,025 at December 31, 2020 | 195 | 195 |
Additional paid-in capital | 905,638 | 847,785 |
Retained earnings | 386,897 | 271,001 |
Less common stock held in treasury, at cost: 5,424,513 shares at September 30, 2021 and 5,757,522 shares at December 31, 2020 | (312,275) | (289,359) |
Accumulated other comprehensive loss | (250) | (197) |
Total common shareholders' equity | 980,205 | 829,425 |
Noncontrolling interests | 133,891 | 96,657 |
Total shareholders' equity | 1,114,096 | 926,082 |
Total liabilities and shareholders' equity | $ 2,194,153 | $ 1,997,140 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation and amortization on fixed assets | $ 74,916 | $ 74,883 |
Accumulated amortization on intangible assets | 108,152 | 85,592 |
Investments attributable to noncontrolling interests | $ 136,278 | $ 94,900 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 19,539,222 | 19,533,547 |
Common stock, shares outstanding (in shares) | 14,114,709 | 13,776,025 |
Common stock held in treasury, shares (in shares) | 5,424,513 | 5,757,522 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues: | ||||
Investment banking | $ 335,603 | $ 203,235 | $ 1,018,824 | $ 562,060 |
Institutional brokerage | 90,099 | 86,764 | 295,417 | 265,246 |
Interest income | 1,485 | 2,095 | 5,215 | 11,225 |
Investment income | 21,046 | 15,080 | 71,508 | 4,987 |
Total revenues | 448,233 | 307,174 | 1,390,964 | 843,518 |
Interest expense | 2,668 | 3,455 | 8,144 | 11,193 |
Net revenues | 445,565 | 303,719 | 1,382,820 | 832,325 |
Non-interest expenses: | ||||
Compensation and benefits | 301,859 | 209,660 | 907,439 | 611,344 |
Outside services | 10,736 | 9,395 | 29,004 | 27,733 |
Occupancy and equipment | 14,483 | 13,849 | 42,225 | 39,356 |
Communications | 10,623 | 11,169 | 32,457 | 33,899 |
Marketing and business development | 5,552 | 537 | 12,733 | 13,164 |
Deal-related expenses | 10,975 | 13,543 | 32,116 | 29,687 |
Trade execution and clearance | 3,637 | 3,666 | 12,024 | 15,129 |
Restructuring and integration costs | 314 | 1,592 | 3,882 | 7,218 |
Intangible asset amortization | 7,520 | 11,607 | 22,560 | 33,122 |
Other operating expenses | 4,156 | 4,052 | 15,743 | 23,656 |
Total non-interest expenses | 369,855 | 279,070 | 1,110,183 | 834,308 |
Income/(loss) before income tax expense/(benefit) | 75,710 | 24,649 | 272,637 | (1,983) |
Income tax expense/(benefit) | 23,512 | 5,674 | 67,852 | (1,400) |
Net income/(loss) | 52,198 | 18,975 | 204,785 | (583) |
Net income applicable to noncontrolling interests | 6,477 | 7,358 | 39,784 | 1,073 |
Net income/(loss) applicable to Piper Sandler Companies | $ 45,721 | $ 11,617 | $ 165,001 | $ (1,656) |
Earnings/(loss) per common share | ||||
Basic | $ 3.22 | $ 0.84 | $ 11.53 | $ (0.12) |
Diluted | 2.68 | 0.78 | 9.81 | (0.12) |
Dividends declared per common share (in dollars per share) | $ 0.55 | $ 0.30 | $ 3.25 | $ 1.63 |
Weighted average number of common shares outstanding | ||||
Basic (in shares) | 14,213 | 13,778 | 14,314 | 13,789 |
Diluted (in shares) | 17,047 | 14,853 | 16,821 | 14,580 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income/(loss) | $ 52,198 | $ 18,975 | $ 204,785 | $ (583) |
Other comprehensive income/(loss), net of tax: | ||||
Foreign currency translation adjustment | (556) | 577 | (53) | (163) |
Comprehensive income/(loss) | 51,642 | 19,552 | 204,732 | (746) |
Comprehensive income applicable to noncontrolling interests | 6,477 | 7,358 | 39,784 | 1,073 |
Comprehensive income/(loss) applicable to Piper Sandler Companies | $ 45,165 | $ 12,194 | $ 164,948 | $ (1,819) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Common Shareholders' Equity | Noncontrolling Interests | |
Beginning Balance (in shares) at Dec. 31, 2019 | 13,717,315 | ||||||||
Beginning Balance at Dec. 31, 2019 | $ 806,528 | $ 195 | $ 757,669 | $ 258,669 | $ (284,378) | $ (872) | $ 731,283 | $ 75,245 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | (22,255) | (14,727) | (14,727) | (7,528) | |||||
Dividends | (16,066) | (16,066) | (16,066) | ||||||
Amortization/issuance of restricted stock (1) | [1] | 44,195 | 44,195 | 44,195 | |||||
Repurchase of common stock through share repurchase program (in shares) | (128,865) | ||||||||
Repurchase of common stock through share repurchase program | (9,225) | (9,225) | (9,225) | ||||||
Issuance of treasury shares for restricted stock vestings (in shares) | 254,111 | ||||||||
Issuance of treasury shares for restricted stock vestings | 0 | (12,551) | 12,551 | 0 | |||||
Issuance of treasury shares for deal consideration (in shares) | 34,205 | ||||||||
Issuance of treasury shares for deal consideration | 2,723 | 1,049 | 1,674 | 2,723 | |||||
Repurchase of common stock from employees (in shares) | (94,615) | ||||||||
Repurchase of common stock from employees | (8,068) | (8,068) | (8,068) | ||||||
Shares reserved/issued for director compensation (in shares) | 1,779 | ||||||||
Shares reserved/issued for director compensation | 116 | 116 | 116 | ||||||
Other comprehensive income/(loss) | (672) | (672) | (672) | ||||||
Fund capital contributions/(distributions), net | (1,201) | 0 | (1,201) | ||||||
Ending Balance (in shares) at Mar. 31, 2020 | 13,783,930 | ||||||||
Ending Balance at Mar. 31, 2020 | 796,075 | $ 195 | 790,478 | 227,876 | (287,446) | (1,544) | 729,559 | 66,516 | |
Beginning Balance (in shares) at Dec. 31, 2019 | 13,717,315 | ||||||||
Beginning Balance at Dec. 31, 2019 | 806,528 | $ 195 | 757,669 | 258,669 | (284,378) | (872) | 731,283 | 75,245 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | $ (583) | ||||||||
Issuance of treasury shares for deal consideration (in shares) | 34,205 | ||||||||
Repurchase of common stock from employees (in shares) | (102,556) | ||||||||
Ending Balance (in shares) at Sep. 30, 2020 | 13,751,430 | ||||||||
Ending Balance at Sep. 30, 2020 | $ 858,375 | $ 195 | 826,719 | 234,055 | (290,440) | (1,035) | 769,494 | 88,881 | |
Beginning Balance (in shares) at Mar. 31, 2020 | 13,783,930 | ||||||||
Beginning Balance at Mar. 31, 2020 | 796,075 | $ 195 | 790,478 | 227,876 | (287,446) | (1,544) | 729,559 | 66,516 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | 2,697 | 1,454 | 1,454 | 1,243 | |||||
Dividends | (2,753) | (2,753) | (2,753) | ||||||
Amortization/issuance of restricted stock (1) | [1] | 17,654 | 17,654 | 17,654 | |||||
Issuance of treasury shares for restricted stock vestings (in shares) | 17,778 | ||||||||
Issuance of treasury shares for restricted stock vestings | 0 | (890) | 890 | 0 | |||||
Repurchase of common stock from employees (in shares) | (3,521) | ||||||||
Repurchase of common stock from employees | (189) | (189) | (189) | ||||||
Shares reserved/issued for director compensation (in shares) | 5,738 | ||||||||
Shares reserved/issued for director compensation | 299 | 299 | 299 | ||||||
Other comprehensive income/(loss) | (68) | (68) | (68) | ||||||
Fund capital contributions/(distributions), net | (3) | 0 | (3) | ||||||
Ending Balance (in shares) at Jun. 30, 2020 | 13,803,925 | ||||||||
Ending Balance at Jun. 30, 2020 | 813,712 | $ 195 | 807,541 | 226,577 | (286,745) | (1,612) | 745,956 | 67,756 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | 18,975 | 11,617 | 11,617 | 7,358 | |||||
Dividends | (4,139) | (4,139) | (4,139) | ||||||
Amortization/issuance of restricted stock (1) | [1] | 19,689 | 19,689 | 19,689 | |||||
Repurchase of common stock through share repurchase program (in shares) | (59,454) | ||||||||
Repurchase of common stock through share repurchase program | (3,905) | (3,905) | (3,905) | ||||||
Issuance of treasury shares for restricted stock vestings (in shares) | 10,829 | ||||||||
Issuance of treasury shares for restricted stock vestings | 0 | (544) | 544 | 0 | |||||
Repurchase of common stock from employees (in shares) | (4,420) | ||||||||
Repurchase of common stock from employees | (334) | (334) | (334) | ||||||
Shares reserved/issued for director compensation (in shares) | 550 | ||||||||
Shares reserved/issued for director compensation | 33 | 33 | 33 | ||||||
Other comprehensive income/(loss) | 577 | 577 | 577 | ||||||
Fund capital contributions/(distributions), net | 13,767 | 0 | 13,767 | ||||||
Ending Balance (in shares) at Sep. 30, 2020 | 13,751,430 | ||||||||
Ending Balance at Sep. 30, 2020 | 858,375 | $ 195 | 826,719 | 234,055 | (290,440) | (1,035) | 769,494 | 88,881 | |
Beginning Balance (in shares) at Dec. 31, 2020 | 13,776,025 | ||||||||
Beginning Balance at Dec. 31, 2020 | 926,082 | $ 195 | 847,785 | 271,001 | (289,359) | (197) | 829,425 | 96,657 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | 65,593 | 49,459 | 49,459 | 16,134 | |||||
Dividends | (34,551) | (34,551) | (34,551) | ||||||
Amortization/issuance of restricted stock (1) | [1] | 62,691 | 62,691 | 62,691 | |||||
Repurchase of common stock through share repurchase program (in shares) | (58,519) | ||||||||
Repurchase of common stock through share repurchase program | (6,218) | (6,218) | (6,218) | ||||||
Issuance of treasury shares for restricted stock vestings (in shares) | 823,951 | ||||||||
Issuance of treasury shares for restricted stock vestings | 0 | (41,500) | 41,500 | 0 | |||||
Repurchase of common stock from employees (in shares) | (120,222) | ||||||||
Repurchase of common stock from employees | (12,735) | (12,735) | (12,735) | ||||||
Shares reserved/issued for director compensation (in shares) | 849 | ||||||||
Shares reserved/issued for director compensation | 104 | 104 | 104 | ||||||
Other comprehensive income/(loss) | 306 | 306 | 306 | ||||||
Fund capital contributions/(distributions), net | (10,046) | 0 | (10,046) | ||||||
Ending Balance (in shares) at Mar. 31, 2021 | 14,422,084 | ||||||||
Ending Balance at Mar. 31, 2021 | 991,226 | $ 195 | 869,080 | 285,909 | (266,812) | 109 | 888,481 | 102,745 | |
Beginning Balance (in shares) at Dec. 31, 2020 | 13,776,025 | ||||||||
Beginning Balance at Dec. 31, 2020 | 926,082 | $ 195 | 847,785 | 271,001 | (289,359) | (197) | 829,425 | 96,657 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | $ 204,785 | ||||||||
Repurchase of common stock from employees (in shares) | (145,683) | ||||||||
Ending Balance (in shares) at Sep. 30, 2021 | 14,114,709 | ||||||||
Ending Balance at Sep. 30, 2021 | $ 1,114,096 | $ 195 | 905,638 | 386,897 | (312,275) | (250) | 980,205 | 133,891 | |
Beginning Balance (in shares) at Mar. 31, 2021 | 14,422,084 | ||||||||
Beginning Balance at Mar. 31, 2021 | 991,226 | $ 195 | 869,080 | 285,909 | (266,812) | 109 | 888,481 | 102,745 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | 86,994 | 69,821 | 69,821 | 17,173 | |||||
Dividends | (6,456) | (6,456) | (6,456) | ||||||
Amortization/issuance of restricted stock (1) | [1] | 19,775 | 19,775 | 19,775 | |||||
Repurchase of common stock through share repurchase program (in shares) | (139,178) | ||||||||
Repurchase of common stock through share repurchase program | (16,856) | (16,856) | (16,856) | ||||||
Issuance of treasury shares for restricted stock vestings (in shares) | 9,287 | ||||||||
Issuance of treasury shares for restricted stock vestings | 0 | (497) | 497 | 0 | |||||
Repurchase of common stock from employees (in shares) | (2,874) | ||||||||
Repurchase of common stock from employees | (361) | (361) | (361) | ||||||
Shares reserved/issued for director compensation (in shares) | 3,648 | ||||||||
Shares reserved/issued for director compensation | 453 | 453 | 453 | ||||||
Other comprehensive income/(loss) | 197 | 197 | 197 | ||||||
Fund capital contributions/(distributions), net | (2) | 0 | (2) | ||||||
Ending Balance (in shares) at Jun. 30, 2021 | 14,292,967 | ||||||||
Ending Balance at Jun. 30, 2021 | 1,074,970 | $ 195 | 888,811 | 349,274 | (283,532) | 306 | 955,054 | 119,916 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) | 52,198 | 45,721 | 45,721 | 6,477 | |||||
Dividends | (8,098) | (8,098) | (8,098) | ||||||
Amortization/issuance of restricted stock (1) | [1] | 20,117 | 20,117 | 20,117 | |||||
Repurchase of common stock through share repurchase program (in shares) | (220,206) | ||||||||
Repurchase of common stock through share repurchase program | (29,176) | (29,176) | (29,176) | ||||||
Issuance of treasury shares for restricted stock vestings (in shares) | 63,357 | ||||||||
Issuance of treasury shares for restricted stock vestings | 0 | (3,455) | 3,455 | 0 | |||||
Repurchase of common stock from employees (in shares) | (22,587) | ||||||||
Repurchase of common stock from employees | (3,022) | (3,022) | (3,022) | ||||||
Shares reserved/issued for director compensation (in shares) | 1,178 | ||||||||
Shares reserved/issued for director compensation | 165 | 165 | 165 | ||||||
Other comprehensive income/(loss) | (556) | (556) | (556) | ||||||
Fund capital contributions/(distributions), net | 7,498 | 0 | 7,498 | ||||||
Ending Balance (in shares) at Sep. 30, 2021 | 14,114,709 | ||||||||
Ending Balance at Sep. 30, 2021 | $ 1,114,096 | $ 195 | $ 905,638 | $ 386,897 | $ (312,275) | $ (250) | $ 980,205 | $ 133,891 | |
[1] | Includes amortization of restricted stock issued in conjunction with the Company's acquisitions. See Note 3 for further discussion. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Activities: | ||
Net income/(loss) | $ 204,785 | $ (583) |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | ||
Depreciation and amortization of fixed assets | 9,218 | 8,047 |
Deferred income taxes | (29,471) | (19,182) |
Stock-based compensation | 119,204 | 80,292 |
Amortization of intangible assets | 22,560 | 33,122 |
Amortization of forgivable loans | 6,787 | 2,554 |
Decrease/(increase) in operating assets: | ||
Receivables from brokers, dealers and clearing organizations | (4,243) | 323,871 |
Net financial instruments and other inventory positions owned | (68,744) | 156,591 |
Investments | (52,034) | (12,422) |
Other assets | (21,615) | (25,334) |
Increase/(decrease) in operating liabilities: | ||
Payables to brokers, dealers and clearing organizations | (10,001) | 5,494 |
Accrued compensation | 73,652 | (14,399) |
Other liabilities and accrued expenses | (30,459) | (5,246) |
Net cash provided by operating activities | 219,639 | 532,805 |
Investing Activities: | ||
Business acquisitions, net of cash acquired | 0 | (393,522) |
Purchases of fixed assets, net | (16,016) | (10,158) |
Net cash used in investing activities | (16,016) | (403,680) |
Financing Activities: | ||
Increase in short-term financing | 0 | 24,988 |
Repayment of Valence Notes | (20,000) | 0 |
Payment of cash dividend | (49,105) | (22,958) |
Increase/(decrease) in noncontrolling interests | (2,550) | 12,563 |
Repurchase of common stock | (68,368) | (21,721) |
Net cash used in financing activities | (140,023) | (7,128) |
Currency adjustment: | ||
Effect of exchange rate changes on cash | (467) | (189) |
Net increase in cash and cash equivalents | 63,133 | 121,808 |
Cash and cash equivalents at beginning of period | 507,935 | 250,018 |
Cash and cash equivalents at end of period | $ 571,068 | $ 371,826 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Supplemental) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Supplemental Cash Flow Information [Abstract] | ||
Cash paid during the period for interest | $ 8,071 | $ 11,115 |
Cash paid during the period for income taxes | $ 124,073 | $ 14,589 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | 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; Piper Sandler Finance LLC, which facilitates corporate debt underwriting in conjunction with affiliated credit vehicles; Piper Sandler Investment Group Inc. and PSC Capital Management LLC, entities providing alternative asset management services; Piper Sandler Loan Strategies, LLC, which provides management services for primary and secondary market liquidity transactions of loan and servicing rights; 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, 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, and profits and losses from trading these securities. Also, the Company has created alternative asset management funds in merchant banking 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 U.S. 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, 2020. 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions The following acquisitions were accounted for pursuant to Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 805, "Business Combinations." Accordingly, the purchase price of each acquisition was allocated to the acquired assets and liabilities assumed based on their estimated fair values as of the respective acquisition dates. The excess of the purchase price over the net assets acquired was allocated between goodwill and intangible assets. The fair value of the equity consideration and retention-related restricted stock was determined using the market price of the Company's common stock on the date of the respective acquisition. SOP Holdings, LLC On January 3, 2020, the Company completed the acquisition of SOP Holdings, LLC and its subsidiaries, including Sandler O'Neill & Partners, L.P. (collectively, "Sandler O'Neill"), a full-service investment banking firm and broker dealer focused on the financial services industry. The transaction was completed pursuant to the Agreement and Plans of Merger dated July 9, 2019. The economic value of the acquisition was $485.0 million at announcement, for which the Company was entitled to receive $100.0 million of tangible book value, subject to a final adjustment as of the closing date. The acquisition of Sandler O'Neill expanded the Company's advisory services revenues, diversified and enhanced scale in corporate financings, added a differentiated fixed income business, and increased scale in the equity brokerage business. As part of the acquisition, the Company granted 1,568,670 shares valued at $124.9 million on the acquisition date. Of these shares, 1,534,465 shares are restricted shares valued at $122.2 million and subject to ratable vesting over three years and employees must fulfill service requirements in exchange for the rights to the restricted shares. As these shares compensate employees for future services, the value of the shares is not part of the purchase price. Compensation expense for these restricted shares will be amortized on a straight-line basis over the requisite service period of three years. The remaining 34,205 shares valued at $2.7 million vested immediately and were not subject to service requirements. These shares were included in the purchase price as equity consideration in addition to the cash consideration of $358.1 million. The net assets acquired by the Company of $360.8 million are described below. As discussed in Note 15, the Company also entered into acquisition-related compensation arrangements with certain employees of $113.9 million which consisted of restricted stock ($96.9 million) and restricted cash ($17.0 million) for retention purposes. The retention-related awards are also subject to vesting restrictions and employees must remain continuously employed by the Company for the respective vesting period. As these shares compensate employees for future services, the value of the shares is not part of the purchase price. Compensation expense related to these arrangements will be amortized on a straight-line basis over the requisite service period of 18 months, three years or five years (a weighted average service period of 3.7 years). The Company recorded $94.4 million of goodwill on the consolidated statements of financial condition, of which $93.4 million is expected to be deductible for income tax purposes. In management's opinion, the goodwill represents the reputation and operating expertise of Sandler O'Neill. Identifiable intangible assets purchased by the Company consisted of customer relationships and the Sandler trade name with acquisition-date fair values of $72.4 million and $85.4 million, respectively. Transaction costs of $1.1 million were incurred for the nine months ended September 30, 2020, and are included in restructuring and integration costs on the consolidated statements of operations. The following table summarizes the estimated fair values of assets acquired and liabilities assumed at the date of the acquisition, including measurement period adjustments: (Amounts in thousands) Assets Cash and cash equivalents $ 27,420 Receivables from brokers, dealers and clearing organizations 192,675 Fixed assets 6,789 Goodwill 94,360 Intangible assets 157,800 Investments 685 Right-of-use lease asset 39,607 Other assets 9,628 Total assets acquired 528,964 Liabilities Accrued compensation 71,398 Accrued lease liability 39,613 Other liabilities and accrued expenses 16,441 Due to Sandler O'Neill (1) 40,673 Total liabilities assumed 168,125 Net assets acquired $ 360,839 (1) Represents the amount of excess tangible book value received by the Company on the date of acquisition. The Valence Group ("Valence") On April 3, 2020, the Company completed the acquisition of Valence, an investment bank offering mergers and acquisitions advisory services to companies and financial sponsors with a focus on the chemicals, materials and related sectors. The transaction was completed pursuant to the share purchase agreement dated February 20, 2020, as amended. The acquisition added a new industry sector and expanded the Company's presence in Europe. The Company paid cash consideration of $30.3 million and entered into unsecured promissory notes with the former owners totaling $20.0 million (the "Valence Notes"), as discussed in Note 11. The net assets acquired by the Company of $50.3 million are described below. As part of the acquisition, the Company granted 647,268 restricted shares valued at $31.2 million on the acquisition date. As discussed in Note 15, the Company also entered into acquisition-related compensation arrangements with certain employees of $5.5 million in restricted stock for retention purposes. Both restricted share grants are subject to graded vesting, beginning on the third anniversary of the acquisition date, so long as the applicable employee remains continuously employed by the Company for such period. As these shares compensate employees for future services, the value of the shares is not part of the purchase price. Compensation expense will be amortized on a straight-line basis over the requisite service period of five years. Additional cash may be earned by certain employees if a revenue threshold is exceeded during the three-year post-acquisition period to the extent they are employed by the Company at the time of payment. Amounts estimated to be payable, if any, will be recorded as compensation expense on the consolidated statements of operations over the requisite performance period. If earned, the amount will be paid by July 3, 2023. As of September 30, 2021, the Company has accrued $10.0 million related to this additional cash payment. The Company recorded $33.3 million of goodwill on the consolidated statements of financial condition, none of which is expected to be deductible for income tax purposes. In management's opinion, the goodwill represents the reputation and operating expertise of Valence. Identifiable intangible assets purchased by the Company consisted of customer relationships with an acquisition-date fair value of $14.8 million. Transaction costs of $0.1 million and $2.1 million were incurred for the three and nine months ended September 30, 2020, respectively, and are included in restructuring and integration costs on the consolidated statements of operations. The following table summarizes the estimated fair values of assets acquired and liabilities assumed at the date of the acquisition: (Amounts in thousands) Assets Cash and cash equivalents $ 8,181 Fixed assets 256 Goodwill 33,300 Intangible assets 14,800 Right-of-use lease asset 3,279 Other assets 4,190 Total assets acquired 64,006 Liabilities Accrued lease liability 3,279 Other liabilities and accrued expenses 10,393 Total liabilities assumed 13,672 Net assets acquired $ 50,334 TRS Advisors LLC ("TRS") On December 31, 2020, the Company completed the acquisition of TRS, an advisory firm offering restructuring and reorganization services to companies in public, private and government settings. The transaction was completed pursuant to the Equity Purchase Agreement dated December 8, 2020. The acquisition expanded the scale of the Company's restructuring advisory business. The purchase price consisted of cash consideration of $23.7 million as detailed in the net assets acquired below. As part of the acquisition, the Company granted 145,952 restricted shares valued at $14.7 million on the acquisition date. The restricted shares are subject to graded vesting, beginning on the third anniversary of the acquisition date, so long as the applicable employee remains continuously employed by the Company for such period. Compensation expense will be amortized on a straight-line basis over the requisite service period of five years. As discussed in Note 15, the Company also entered into acquisition-related compensation arrangements with certain employees of $2.9 million in restricted stock for retention purposes. These restricted shares are subject to ratable vesting and employees must fulfill service requirements in exchange for the rights to the restricted shares. Compensation expense will be amortized on a straight-line basis over the requisite service period of three years. As both restricted share grants compensate employees for future services, the value of the shares is not part of the purchase price. Additional cash of $7.0 million may be earned by certain employees if a revenue threshold is exceeded during the three-year post-acquisition period to the extent they are employed by the Company at the time of payment. Amounts estimated to be payable, if any, will be recorded as compensation expense on the consolidated statements of operations over the requisite performance period. If earned, the amount will be paid by April 3, 2024. As of September 30, 2021, the Company expects the maximum amount will be earned and has accrued $1.6 million related to this additional cash payment. The Company recorded $12.2 million of goodwill on the consolidated statements of financial condition, all of which is expected to be deductible for income tax purposes. In management's opinion, the goodwill represents the reputation and operating expertise of TRS. Identifiable intangible assets purchased by the Company consisted of customer relationships with an acquisition-date fair value of $5.3 million. Transaction costs of $0.1 million were incurred for the nine months ended September 30, 2021, and are included in restructuring and integration costs on the consolidated statements of operations. The following table summarizes the estimated fair values of assets acquired and liabilities assumed at the date of the acquisition, including measurement period adjustments: (Amounts in thousands) Assets Cash and cash equivalents $ 7 Goodwill 12,199 Intangible assets 5,300 Right-of-use lease asset 1,818 Other assets 6,215 Total assets acquired 25,539 Liabilities Accrued lease liability 1,818 Other liabilities and accrued expenses 7 Total liabilities assumed 1,825 Net assets acquired $ 23,714 Pro Forma Financial Information The results of operations of Sandler O'Neill, Valence and TRS have been included in the Company's consolidated financial statements prospectively beginning on the respective acquisition dates. The acquisitions have been fully integrated with the Company's existing operations. Accordingly, post-acquisition revenues and net income are not discernible. The following unaudited pro forma financial data is presented on a combined basis and includes Valence and TRS. Based on the respective acquisition dates, the unaudited pro forma financial data assumes that both the Valence and TRS acquisitions had occurred on January 1, 2019, the beginning of the prior annual period in which the acquisitions occurred. Pro forma results have been prepared by adjusting the Company's historical results to include the results of operations of Valence and TRS adjusted for the following significant changes: interest expense was adjusted to reflect the debt incurred by the Company to fund a portion of the Valence purchase price; amortization expense was adjusted to account for the acquisition-date fair value of intangible assets; compensation and benefits expenses were adjusted to reflect the restricted stock issued as part of the respective acquisition, the restricted stock issued for retention purposes, and the cost that would have been incurred had Valence and TRS employees been included in the Company’s employee compensation arrangements; and the income tax effect of applying the Company's statutory tax rates to the results of operations of Valence and TRS. The Company's consolidated unaudited pro forma information presented does not necessarily reflect the results of operations that would have resulted had the acquisitions been completed at the beginning of the applicable period presented, does not contemplate client account overlap and anticipated operational efficiencies of the combined entities, nor does it indicate the results of operations in future periods. Three Months Ended Nine Months Ended (Amounts in thousands) September 30, 2020 September 30, 2020 Net revenues $ 314,415 $ 865,489 Net income applicable to Piper Sandler Companies 14,085 130 |
Financial Instruments and Other
Financial Instruments and Other Inventory Positions Owned and Financial Instruments and Other Inventory Positions Sold, but Not Yet Purchased | 9 Months Ended |
Sep. 30, 2021 | |
Financial Instruments Owned and Sold, Not yet Purchased [Abstract] | |
Financial Instruments and Other Inventory Positions Owned and Financial Instruments and Other Inventory Positions Sold, but Not Yet Purchased | Financial Instruments and Other Inventory Positions Owned and Financial Instruments and Other Inventory Positions Sold, but Not Yet Purchased September 30, December 31, (Amounts in thousands) 2021 2020 Financial instruments and other inventory positions owned: Corporate securities: Equity securities $ 5,780 $ 1,349 Convertible securities 150,979 146,088 Fixed income securities 21,556 18,432 Municipal securities: Taxable securities 23,330 6,267 Tax-exempt securities 117,212 67,944 Short-term securities 56,486 28,592 Mortgage-backed securities 13 13 U.S. government agency securities 51,838 9,146 U.S. government securities 48 100,275 Derivative contracts 23,573 23,446 Total financial instruments and other inventory positions owned $ 450,815 $ 401,552 Financial instruments and other inventory positions sold, but not yet purchased: Corporate securities: Equity securities $ 62,407 $ 105,190 Fixed income securities 5,468 18,789 U.S. government securities 58,277 21,669 Derivative contracts 5,397 5,382 Total financial instruments and other inventory positions sold, but not yet purchased $ 131,549 $ 151,030 At September 30, 2021 and December 31, 2020, financial instruments and other inventory positions owned in the amount of $117.6 million and $130.7 million, respectively, had been pledged as collateral for short-term financings. 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. Derivative Contract Financial Instruments The Company uses interest rate and credit default swaps, interest rate locks, U.S. treasury bond futures and options, and equity option contracts as a means to manage risk in certain inventory positions. The Company also enters into interest rate and credit default swaps to facilitate customer transactions. Credit default swaps use rates based upon the Commercial Mortgage Backed Securities ("CMBX") index. The following describes the Company's derivatives by the type of transaction or security the instruments are economically hedging. 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. The instruments use rates based upon the London Interbank Offered Rate ("LIBOR") index, the Municipal Market Data ("MMD") index or the Securities Industry and Financial Markets Association ("SIFMA") 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 associated with its fixed income securities. These instruments use rates based upon the MMD, LIBOR or SIFMA 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: September 30, 2021 December 31, 2020 (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 $ 167,273 $ 159,009 $ 1,727,396 $ 233,116 $ 223,218 $ 1,955,131 Trading securities 525 752 132,025 — 4,225 55,375 $ 167,798 $ 159,761 $ 1,859,421 $ 233,116 $ 227,443 $ 2,010,506 (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 Nine Months Ended (Amounts in thousands) September 30, September 30, Derivative Category Operations Category 2021 2020 2021 2020 Interest rate derivative contract Investment banking $ (175) $ (232) $ (1,326) $ (1,164) Interest rate derivative contract Institutional brokerage 596 154 3,691 (1,439) Equity option derivative contracts Institutional brokerage (123) 228 — 228 $ 298 $ 150 $ 2,365 $ (2,375) 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 September 30, 2021, the Company had $19.8 million of uncollateralized credit exposure with these counterparties (notional contract amount of $159.7 million), including $16.4 million of uncollateralized credit exposure with one counterparty. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 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 are 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 committee, comprised of members of senior management and risk management, provides 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 (principally hybrid preferred 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. 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 are therefore 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. Mortgage-backed securities – Mortgage-backed securities collateralized by residential mortgages are valued using cash flow models that utilize unobservable inputs including credit default rates, prepayment rates, loss severity and valuation yields. As judgment is used to determine the range of these inputs, these mortgage-backed securities are categorized as Level III. 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 categorized as Level I. The Company does not transact in securities of countries other than the U.S. government. Derivative contracts – Derivative contracts include interest rate swaps, interest rate locks, and U.S. treasury bond futures and options. 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 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 partnerships. Investments in private companies are valued based on an assessment of each underlying security, considering rounds of financing, 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")) and changes in market outlook, among other factors. These securities are generally categorized as Level III. 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 September 30, 2021: Valuation Weighted Technique Unobservable Input Range Average (1) Assets Financial instruments and other inventory positions owned: Municipal securities: Tax-exempt securities Discounted cash flow Expected recovery rate (% of par) (2) 0 - 25% 13.4% Derivative contracts: Interest rate locks Discounted cash flow Premium over the MMD curve in basis points ("bps") (2) 1 - 41 bps 17.1 bps Investments at fair value: Equity securities in private companies Market approach Revenue multiple (2) 2 - 7 times 4.4 times EBITDA multiple (2) 12 - 13 times 12.1 times Liabilities Financial instruments and other inventory positions sold, but not yet purchased: Derivative contracts: Interest rate locks Discounted cash flow Premium over the MMD curve in bps (3) 1 - 27 bps 14.3 bps Uncertainty of fair value measurements: (1) Unobservable inputs were weighted by the relative fair value of the financial instruments. (2) Significant increase/(decrease) in the unobservable input in isolation would have resulted in a significantly higher/(lower) fair value measurement. (3) Significant increase/(decrease) in the unobservable input in isolation would have resulted in a significantly lower/(higher) fair value measurement. 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 September 30, 2021: 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 $ 692 $ 5,088 $ — $ — $ 5,780 Convertible securities — 150,979 — — 150,979 Fixed income securities — 21,556 — — 21,556 Municipal securities: Taxable securities — 23,330 — — 23,330 Tax-exempt securities — 116,931 281 — 117,212 Short-term securities — 56,486 — — 56,486 Mortgage-backed securities — — 13 — 13 U.S. government agency securities — 51,838 — — 51,838 U.S. government securities 48 — — — 48 Derivative contracts — 166,682 1,116 (144,225) 23,573 Total financial instruments and other inventory positions owned 740 592,890 1,410 (144,225) 450,815 Cash equivalents 524,920 — — — 524,920 Investments at fair value (2) 21,330 44,718 157,405 — 223,453 Total assets $ 546,990 $ 637,608 $ 158,815 $ (144,225) $ 1,199,188 Liabilities Financial instruments and other inventory positions sold, but not yet purchased: Corporate securities: Equity securities $ 60,902 $ 1,505 $ — $ — $ 62,407 Fixed income securities — 5,468 — — 5,468 U.S. government securities 58,277 — — — 58,277 Derivative contracts — 158,900 861 (154,364) 5,397 Total financial instruments and other inventory positions sold, but not yet purchased $ 119,179 $ 165,873 $ 861 $ (154,364) $ 131,549 (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 $136.3 million primarily attributable to unrelated third party ownership in consolidated merchant banking funds. The following table summarizes the valuation of the Company's financial instruments by pricing observability levels defined in ASC 820 as of December 31, 2020: 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 $ 330 $ 1,019 $ — $ — $ 1,349 Convertible securities — 146,088 — — 146,088 Fixed income securities — 18,432 — — 18,432 Municipal securities: Taxable securities — 6,267 — — 6,267 Tax-exempt securities — 67,944 — — 67,944 Short-term securities — 28,592 — — 28,592 Mortgage-backed securities — — 13 — 13 U.S. government agency securities — 9,146 — — 9,146 U.S. government securities 100,275 — — — 100,275 Derivative contracts — 232,846 270 (209,670) 23,446 Total financial instruments and other inventory positions owned 100,605 510,334 283 (209,670) 401,552 Cash equivalents 468,091 — — — 468,091 Investments at fair value (2) 16,496 5,358 152,995 — 174,849 Total assets $ 585,192 $ 515,692 $ 153,278 $ (209,670) $ 1,044,492 Liabilities Financial instruments and other inventory positions sold, but not yet purchased: Corporate securities: Equity securities $ 102,013 $ 3,177 $ — $ — $ 105,190 Fixed income securities — 18,789 — — 18,789 U.S. government securities 21,669 — — — 21,669 Derivative contracts — 223,737 3,706 (222,061) 5,382 Total financial instruments and other inventory positions sold, but not yet purchased $ 123,682 $ 245,703 $ 3,706 $ (222,061) $ 151,030 (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 $94.9 million primarily attributable to unrelated third party ownership in consolidated merchant banking funds. The Company's Level III assets were $158.8 million and $153.3 million, or 13.2 percent and 14.7 percent of financial instruments measured at fair value at September 30, 2021 and December 31, 2020, respectively. There were $42.7 million of transfers of financial assets out of Level III for the nine months ended September 30, 2021, primarily due to unobservable inputs becoming observable. The following tables summarize the changes in fair value associated with Level III financial instruments held at the beginning or end of the periods presented: Unrealized gains/ (losses) for assets/ Balance at Realized Unrealized Balance at liabilities held at June 30, Transfers Transfers gains/ gains/ September 30, September 30, (Amounts in thousands) 2021 Purchases Sales in out (losses) (losses) 2021 2021 Assets Financial instruments and other inventory positions owned: Municipal securities: Tax-exempt securities $ 528 $ — $ — $ — $ — $ — $ (247) $ 281 $ (247) Mortgage-backed securities 13 — — — — — — 13 — Derivative contracts 628 120 (450) — — 330 488 1,116 681 Total financial instruments and other inventory positions owned 1,169 120 (450) — — 330 241 1,410 434 Investments at fair value 135,035 4,000 (3,897) — (54) 1,091 21,230 157,405 20,202 Total assets $ 136,204 $ 4,120 $ (4,347) $ — $ (54) $ 1,421 $ 21,471 $ 158,815 $ 20,636 Liabilities Financial instruments and other inventory positions sold, but not yet purchased: Derivative contracts $ 968 $ (1,016) $ — $ — $ — $ 1,016 $ (107) $ 861 $ 245 Total financial instruments and other inventory positions sold, but not yet purchased $ 968 $ (1,016) $ — $ — $ — $ 1,016 $ (107) $ 861 $ 245 Unrealized gains/ (losses) for assets/ Balance at Realized Unrealized Balance at liabilities held at June 30, Transfers Transfers gains/ gains/ September 30, September 30, (Amounts in thousands) 2020 Purchases Sales in out (losses) (losses) 2020 2020 Assets Financial instruments and other inventory positions owned: Mortgage-backed securities $ 13 $ — $ — $ — $ — $ — $ — $ 13 $ — Derivative contracts 64 107 (310) — — 203 310 374 374 Total financial instruments and other inventory positions owned 77 107 (310) — — 203 310 387 374 Investments at fair value 120,615 15,850 (1,013) — — 1,013 9,807 146,272 9,807 Total assets $ 120,692 $ 15,957 $ (1,323) $ — $ — $ 1,216 $ 10,117 $ 146,659 $ 10,181 Liabilities Financial instruments and other inventory positions sold, but not yet purchased: Derivative contracts $ 3,212 $ (880) $ — $ — $ — $ 880 $ 157 $ 3,369 $ 679 Total financial instruments and other inventory positions sold, but not yet purchased $ 3,212 $ (880) $ — $ — $ — $ 880 $ 157 $ 3,369 $ 679 Unrealized gains/ (losses) for assets/ Balance at Realized Unrealized Balance at liabilities held at December 31, Transfers Transfers gains/ gains/ September 30, September 30, (Amounts in thousands) 2020 Purchases Sales in out (losses) (losses) 2021 2021 Assets Financial instruments and other inventory positions owned: Municipal securities: Tax-exempt securities $ — $ — $ — $ 528 $ — $ — $ (247) $ 281 $ (247) Mortgage-backed securities 13 — — — — — — 13 — Derivative contracts 270 143 (1,030) — — 888 845 1,116 1,116 Total financial instruments and other inventory positions owned 283 143 (1,030) 528 — 888 598 1,410 869 Investments at fair value 152,995 12,044 (24,784) — (42,671) 17,986 41,835 157,405 35,397 Total assets $ 153,278 $ 12,187 $ (25,814) $ 528 $ (42,671) $ 18,874 $ 42,433 $ 158,815 $ 36,266 Liabilities Financial instruments and other inventory positions sold, but not yet purchased: Derivative contracts $ 3,706 $ (4,444) $ 29 $ — $ — $ 4,414 $ (2,844) $ 861 $ 861 Total financial instruments and other inventory positions sold, but not yet purchased $ 3,706 $ (4,444) $ 29 $ — $ — $ 4,414 $ (2,844) $ 861 $ 861 Unrealized gains/ (losses) for assets/ Balance at Realized Unrealized Balance at liabilities held at December 31, Transfers Transfers gains/ gains/ September 30, September 30, (Amounts in thousands) 2019 Purchases Sales in out (losses) (losses) 2020 2020 Assets Financial instruments and other inventory positions owned: Mortgage-backed securities $ 13 $ — $ — $ — $ — $ — $ — $ 13 $ — Derivative contracts 8 857 (370) — — (487) 366 374 374 Total financial instruments and other inventory positions owned 21 857 (370) — — (487) 366 387 374 Investments at fair value 132,329 16,133 (1,178) — (130) (4,490) 3,608 146,272 (1,893) Total assets $ 132,350 $ 16,990 $ (1,548) $ — $ (130) $ (4,977) $ 3,974 $ 146,659 $ (1,519) Liabilities Financial instruments and other inventory positions sold, but not yet purchased: Derivative contracts $ 1,563 $ (13,627) $ 371 $ — $ — $ 13,256 $ 1,806 $ 3,369 $ 3,358 Total financial instruments and other inventory positions sold, but not yet purchased $ 1,563 $ (13,627) $ 371 $ — $ — $ 13,256 $ 1,806 $ 3,369 $ 3,358 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 reported in investment banking revenues or investment income on the consolidated statements of operations. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2021 | |
Items Included in Consolidated Statement of Financial Condition [Abstract] | |
Variable Interest Entities | 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, or municipal debt obligations, 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. Consolidated VIEs The Company's consolidated VIEs at September 30, 2021 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 which are consolidated by the Company and included on the consolidated statements of financial condition at September 30, 2021. 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. One of these VIEs has $25.0 million of bank line financing available with an interest rate based on prime plus an applicable margin. The assets and liabilities are presented prior to consolidation, and thus a portion of these assets and liabilities are eliminated in consolidation. Alternative Asset (Amounts in thousands) Management Funds Assets Investments $ 201,789 Other assets 2,809 Total assets $ 204,598 Liabilities Other liabilities and accrued expenses $ 9,473 Total liabilities $ 9,473 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 15 for additional information on the 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 $1.8 billion at September 30, 2021 and December 31, 2020. The Company's exposure to loss from these VIEs is $9.1 million, which is the carrying value of its capital contributions recorded in investments on the consolidated statements of financial condition at September 30, 2021. The Company had no liabilities related to these VIEs at September 30, 2021 and December 31, 2020. Furthermore, the Company has not provided financial or other support to these VIEs that it was not previously contractually required to provide as of September 30, 2021. |
Receivables from and Payables t
Receivables from and Payables to Brokers, Dealers and Clearing Organizations | 9 Months Ended |
Sep. 30, 2021 | |
Brokers and Dealers [Abstract] | |
Receivables from and Payables to Brokers, Dealers and Clearing Organizations | Receivables from and Payables to Brokers, Dealers and Clearing Organizations September 30, December 31, (Amounts in thousands) 2021 2020 Receivable from clearing organizations $ 192,460 $ 184,662 Receivable from brokers and dealers 29,862 33,514 Other 3,412 3,315 Total receivables from brokers, dealers and clearing organizations $ 225,734 $ 221,491 September 30, December 31, (Amounts in thousands) 2021 2020 Payable to brokers and dealers $ 8,590 $ 18,591 Total payables to brokers, dealers and clearing organizations $ 8,590 $ 18,591 |
Investments
Investments | 9 Months Ended |
Sep. 30, 2021 | |
Investments, All Other Investments [Abstract] | |
Investments | Investments The Company's investments include investments in private companies and partnerships. September 30, December 31, (Amounts in thousands) 2021 2020 Investments at fair value $ 223,453 $ 174,849 Investments at cost 611 611 Investments accounted for under the equity method 11,149 7,719 Total investments 235,213 183,179 Less investments attributable to noncontrolling interests (1) (136,278) (94,900) $ 98,935 $ 88,279 (1) Noncontrolling interests are primarily attributable to unrelated third party ownership in consolidated merchant banking funds. At September 30, 2021, investments carried on a cost basis had an estimated fair market value of $0.6 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. |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets September 30, December 31, (Amounts in thousands) 2021 2020 Fee receivables $ 48,598 $ 38,840 Accrued interest receivables 1,483 1,474 Forgivable loans, net 11,313 5,526 Prepaid expenses 17,416 14,585 Income tax receivables 5,019 — Other 16,383 14,618 Total other assets $ 100,212 $ 75,043 |
Short-Term Financing
Short-Term Financing | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Short-Term Financing | Short-Term Financing The Company has an unsecured $65 million revolving credit facility with U.S. Bank N.A. The credit agreement will terminate on December 20, 2022, unless otherwise terminated, and is subject to a one-year extension exercisable at the option of the Company. This credit facility includes customary events of default and covenants that, among other things, requires the Company's U.S. broker dealer subsidiary to maintain a minimum regulatory net capital of $120 million, limits the Company's leverage ratio, requires maintenance of a minimum ratio of operating cash flow to fixed charges, and imposes certain limitations on the Company's ability to make acquisitions and make payments on its capital stock. At September 30, 2021, there were no advances against this credit facility. The Company's committed short-term bank line financing at September 30, 2021 consisted of a one The Company previously issued secured commercial paper to fund a portion of its securities inventory. The Company retired this program in April 2021. |
Long-Term Financing
Long-Term Financing | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Financing | Long-Term Financing On October 15, 2019, the Company entered into a note purchase agreement with certain entities advised by Pacific Investment Management Company ("PIMCO"), under which the Company issued unsecured fixed rate senior notes ("Notes") in the amount of $175 million. The Notes consist of two classes, Class A Notes and Class B Notes, with principal amounts of $50 million and $125 million, respectively. The Class A Notes bear interest at an annual fixed rate of 4.74 percent and matured on October 15, 2021. The Class B Notes bear interest at an annual fixed rate of 5.20 percent and mature on October 15, 2023. Interest on the Notes is payable semi-annually. The unpaid principal amounts are due in full on the respective maturity dates and may not be prepaid by the Company. The Class A Notes were repaid by the Company upon maturity on October 15, 2021. On April 3, 2020, the Company entered into unsecured promissory notes as part of the acquisition of Valence totaling $20 million. The Valence Notes were repaid in the first quarter of 2021. |
Legal Contingencies
Legal Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Contingencies | 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 has established reserves for potential losses that are probable and reasonably estimable that may result from pending and potential legal actions, investigations and regulatory proceedings. Reasonably possible losses in excess of amounts accrued at September 30, 2021 are not material. 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 be more developed before a loss 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 reserves 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 its established reserves, that pending legal actions, investigations and regulatory proceedings will be resolved with no material adverse effect on the consolidated statements of financial condition, results of operations or cash flows of the Company. However, if during any period a potential adverse contingency should become probable or resolved for an amount in excess of the established reserves, 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. 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. |
Restructuring and Integration C
Restructuring and Integration Costs | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Integration Costs | Restructuring and Integration Costs The Company incurred restructuring and integration costs for the three months ended September 30, 2021, related to its announced acquisition of Cornerstone Macro, as discussed in Note 20. The Company incurred restructuring and integration costs for the nine months ended September 30, 2021, primarily associated with its vacated leased office space in conjunction with its acquisitions of TRS and Valence. The Company incurred restructuring and integration costs for the three and nine months ended September 30, 2020, primarily in conjunction with its acquisitions of Sandler O'Neill and Valence. Three Months Ended Nine Months Ended September 30, September 30, (Amounts in thousands) 2021 2020 2021 2020 Vacated leased office space $ — $ 1,820 $ 3,404 $ 1,908 Severance, benefits and outplacement — 6 — 2,927 Contract termination — (123) — (590) Total restructuring costs — 1,703 3,404 4,245 Integration costs 314 (111) 478 2,973 Total restructuring and integration costs $ 314 $ 1,592 $ 3,882 $ 7,218 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Share Repurchases Effective January 1, 2020, the Company's board of directors authorized the repurchase of up to $150.0 million in common shares through December 31, 2021. During the nine months ended September 30, 2021, the Company repurchased 417,903 shares at an average price of $125.03 per share for an aggregate purchase price of $52.3 million related to this authorization. During the nine months ended September 30, 2020, the Company repurchased 188,319 shares at an average price of $69.72 per share for an aggregate purchase price of $13.1 million related to this authorization. At September 30, 2021, the Company had $84.6 million remaining under this authorization. The Company also purchases shares of common stock from restricted stock award recipients upon the award vesting or as recipients sell shares to meet their employment tax obligations. The Company purchased 145,683 shares and 102,556 shares, or $16.1 million and $8.6 million of the Company's common stock for these purposes during the nine months ended September 30, 2021 and 2020, respectively. 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 15. During the nine months ended September 30, 2021 and 2020, the Company issued 896,595 shares and 282,718 shares, respectively, related to these obligations. During the nine months ended September 30, 2020, the Company also issued 34,205 common shares out of treasury stock for Sandler O'Neill deal consideration, as discussed in Note 3. Dividends The Company's current dividend policy is intended to return a metric based on fiscal year net income. The board of directors determines the declaration and payment of dividends and is free to change the dividend policy at any time. During the nine months ended September 30, 2021, the Company declared and paid quarterly cash dividends on its common stock, aggregating $1.40 per share, and a special cash dividend on its common stock related to fiscal year 2020 results of $1.85 per share, totaling $49.1 million. On October 29, 2021, the board of directors declared both a quarterly and a special cash dividend on its common stock of $0.55 and $3.00 per share, respectively, to be paid on December 10, 2021, to shareholders of record as of the close of business on November 23, 2021. The special cash dividend relates to the Company's financial results for the nine months ended September 30, 2021. 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 indirectly, to Piper Sandler Companies. Noncontrolling interests primarily represent the minority equity holders' proportionate share of the equity in the Company's merchant banking funds. |
Compensation Plans
Compensation Plans | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Compensation Plans | Compensation Plans Stock-Based Compensation Plans The Company has three outstanding stock-based compensation plans: the Amended and Restated 2003 Annual and Long-Term Incentive Plan (the "Incentive Plan"), the 2019 Employment Inducement Award Plan (the "2019 Inducement Plan") and the 2020 Employment Inducement Award Plan (the "2020 Inducement Plan"). The Company's equity awards are recognized on the consolidated statements of operations at grant date fair value over the service period of the award, less forfeitures. The following table provides a summary of the Company's outstanding equity awards (in shares or units) as of September 30, 2021: Incentive Plan Restricted Stock Annual grants 533,024 Sign-on grants 92,245 625,269 2019 Inducement Plan Restricted Stock 96,000 2020 Inducement Plan Restricted Stock 1,277,958 Total restricted stock related to compensation plans 1,999,227 Restricted stock related to acquisitions (1) 1,816,211 Total restricted stock outstanding 3,815,438 Incentive Plan Restricted Stock Units 158,393 Incentive Plan Stock Options 81,667 (1) The Company issued restricted stock with service conditions in conjunction with the acquisitions of Sandler O'Neill, Valence and TRS. See Note 3 for further discussion. Incentive Plan The Incentive Plan permits the grant of equity awards, including restricted stock, restricted stock units and non-qualified stock options, to the Company's employees and directors for up t o 9.4 million shares of common stock (1.4 million shares remained available for future issuance under the Incentive Plan as of September 30, 2021). The Company believes that such awards help align the interests of employees and directors with those of shareholders and serve as an employee retention tool. The Incentive Plan provides for accelerated vesting of awards if there is a severance event, a change in control of the Company (as defined in the Incentive Plan), in the event of a participant's death, and at the discretion of the compensation committee of the Company's board of directors. Restricted Stock Awards Restricted stock grants are valued at the market price of the Company's common stock on the date of grant and are amortized over the requisite service period. The Company grants shares of restricted stock to employees as part of year-end compensation ("Annual Grants") and upon initial hiring or as a retention award ("Sign-on Grants"). The Company's Annual Grants are made each year in February. Annual Grants vest ratably over three years in equal installments. The Annual Grants provide for continued vesting after termination of employment, so long as the employee does not violate certain post-termination restrictions set forth in the award agreement or any agreements entered into upon termination. The Company determined the service inception date precedes the grant date for the Annual Grants, and that the post-termination restrictions do not meet the criteria for an in-substance service condition, as defined by FASB Accounting Standards Codification Topic 718, "Compensation — Stock Compensation." Accordingly, restricted stock granted as part of the Annual Grants is expensed in the one Sign-on Grants are used as a recruiting tool for new employees and are issued to current employees as a retention tool. These awards have both cliff and ratable vesting terms, and the employees must fulfill service requirements in exchange for rights to the awards. Compensation expense is amortized on a straight-line basis from the grant date over the requisite service period, generally three Annually, the Company grants stock to its non-employee directors. The stock-based compensation paid to non-employee directors is fully expensed on the grant date and included within outside services expense on the consolidated statements of operations. Restricted Stock Units The Company grants restricted stock units to its leadership team ("Leadership Grants"). Restricted stock units will vest and convert to shares of common stock at the end of each 36-month performance period only if the Company satisfies predetermined performance and/or market conditions over the performance period. Under the terms of these awards, the number of units that will actually vest and convert to shares will be based on the extent to which the Company achieves specified targets during each performance period. The maximum payout leverage under these grants is 150 percent. Up to 75 percent of the award can be earned based on the Company achieving certain average adjusted return on equity targets, as defined in the terms of the award agreements. The fair value of this portion of the award was based on the closing price of the Company's common stock on the grant date. If the Company determines that it is probable that the performance condition will be achieved, compensation expense is amortized on a straight-line basis over the 36-month performance period. The probability that the performance condition will be achieved is reevaluated each reporting period with changes in estimated outcomes accounted for using a cumulative effect adjustment to compensation expense. Compensation expense will be recognized only if the performance condition is met. Employees forfeit unvested restricted stock units upon termination of employment with a corresponding reversal of compensation expense. As of September 30, 2021, the Company has determined that the probability of achieving the performance condition for each award is as follows: Probability of Achieving Grant Year Performance Condition 2021 75% 2020 75% 2019 75% Up to 75 percent of the award can be earned based on the Company's total shareholder return relative to members of a predetermined peer group. The market condition must be met for the awards to vest and compensation cost will be recognized regardless if the market condition is satisfied. Compensation expense is amortized on a straight-line basis over the 36-month requisite service period. Employees forfeit unvested restricted stock units upon termination of employment with a corresponding reversal of compensation expense. For this portion of the awards, the fair value on the grant date was determined using a Monte Carlo simulation with the following assumptions: Risk-free Expected Stock Grant Year Interest Rate Price Volatility 2021 0.23% 43.2% 2020 1.40% 27.3% 2019 2.50% 31.9% 2018 2.40% 34.8% 2017 1.62% 35.9% Because the market condition portion of the awards vesting depend on the Company's total shareholder return relative to a peer group, the valuation modeled the performance of the peer group as well as the correlation between the Company and the peer group. The expected stock price volatility assumptions were determined using historical volatility, as correlation coefficients can only be developed through historical volatility. The risk-free interest rates were determined based on three-year U.S. Treasury bond yields. The compensation committee of the Company's board of directors included defined retirement provisions in its Leadership Grants, beginning with the February 2018 grant. Certain grantees meeting defined age and service requirements will be fully vested in the awards as long as performance and post-termination obligations are met throughout the performance period. These retirement-eligible grants are expensed in the period in which those awards are deemed to be earned, which is the calendar year preceding the February grant date. Stock Options On February 15, 2018, the Company granted options to certain executive officers. These options are expensed on a straight-line basis over the required service period of five years, based on the estimated fair value of the award on the date of grant. The exercise price per share is equal to the closing price on the date of grant plus ten percent. These options are subject to graded vesting, beginning on the third anniversary of the grant date, so long as the employee remains continuously employed by the Company. The maximum term of these stock options is ten years. The fair value of this stock option award was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: Risk-free interest rate 2.82 % Dividend yield 3.22 % Expected stock price volatility 37.20 % Expected life of options (in years) 7.0 Fair value of options granted (per share) $ 24.49 The risk-free interest rate assumption was based on the U.S. Treasury bond yield with a maturity equal to the expected life of the options. The dividend yield assumption was based on the assumed dividend payout over the expected life of the options. The expected stock price volatility assumption was determined using historical volatility, as correlation coefficients can only be developed through historical volatility. Inducement Plans Inducement plan awards are amortized as compensation expense on a straight-line basis over each respective vesting period. Employees forfeit unvested shares upon termination of employment and a reversal of compensation expense is recorded. The Company established the 2019 Inducement Plan in conjunction with its acquisition of Weeden & Co. L.P. ("Weeden & Co."). On August 2, 2019, the Company granted $7.3 million (97,752 shares) in restricted stock. These restricted shares are subject to graded vesting, generally beginning on the third anniversary of the grant date through August 2, 2023. The Company established the 2020 Inducement Plan in conjunction with its acquisition of Sandler O'Neill. On January 3, 2020, the Company granted $96.9 million (1,217,423 shares) in restricted stock. These restricted shares have both cliff and graded vesting terms with vesting periods of 18 months, three years or five years (with a weighted average service period of 3.7 years). On April 3, 2020, the Company granted $5.5 million (114,000 shares) in restricted stock under the 2020 Inducement Plan in conjunction with its acquisition of Valence. These restricted shares are subject to graded vesting, generally beginning on the third anniversary of the grant date through April 3, 2025. On December 31, 2020, the Company granted $2.9 million (29,194 shares) in restricted stock under the 2020 Inducement Plan in conjunction with its acquisition of TRS. These restricted shares are subject to ratable vesting over a three Stock-Based Compensation Activity The following table summarizes the Company's stock-based compensation activity: Three Months Ended Nine Months Ended September 30, September 30, (Amounts in millions) 2021 2020 2021 2020 Stock-based compensation expense $ 40.5 $ 29.9 $ 118.1 $ 79.5 Forfeitures 0.2 0.9 1.5 2.1 Tax benefit related to stock-based compensation expense 5.3 3.9 16.0 10.3 The following table summarizes the changes in the Company's unvested restricted stock: Unvested Weighted Average Restricted Stock Grant Date (in Shares) Fair Value December 31, 2020 4,312,557 $ 74.99 Granted 351,244 107.65 Vested (828,926) 80.87 Canceled (19,437) 89.83 September 30, 2021 3,815,438 $ 76.64 The following table summarizes the changes in the Company's unvested restricted stock units: Unvested Weighted Average Restricted Grant Date Stock Units Fair Value December 31, 2020 146,048 $ 85.60 Granted 62,569 103.69 Vested (50,224) 92.93 Canceled — — September 30, 2021 158,393 $ 90.43 As of September 30, 2021, there was $152.8 million of total unrecognized compensation cost related to restricted stock and restricted stock units expected to be recognized over a weighted average period of 2.5 years. The following table summarizes the changes in the Company's outstanding stock options: Weighted Average Weighted Remaining Options Average Contractual Term Aggregate Outstanding Exercise Price (in Years) Intrinsic Value December 31, 2020 81,667 $ 99.00 7.1 $ 155,167 Granted — — Exercised — — Canceled — — Expired — — September 30, 2021 81,667 $ 99.00 6.4 $ 3,222,580 Options exercisable at September 30, 2021 27,222 $ 99.00 6.4 $ 1,074,180 As of September 30, 2021, there was $0.5 million of unrecognized compensation cost related to stock options expected to be recognized over a weighted average period of 1.4 years. Deferred Compensation Plans The Company maintains various deferred compensation arrangements for employees. The Mutual Fund Restricted Share Investment Plan is a fully funded deferred compensation plan which allowed eligible employees to receive a portion of their incentive compensation in restricted mutual fund shares ("MFRS Awards") of investment funds. MFRS Awards are awarded to qualifying employees in February of each year, and represent a portion of their compensation for performance in the preceding year similar to the Company's Annual Grants. MFRS Awards vest ratably over three years in equal installments and provide for continued vesting after termination of employment so long as the employee does not violate certain post-termination restrictions set forth in the award agreement or any agreement entered into upon termination. Forfeitures are recorded as a reduction of compensation and benefits expense within the consolidated statements of operations. MFRS Awards are owned by employee recipients (subject to aforementioned vesting restrictions) and as such are not included on the consolidated statements of financial condition. The nonqualified deferred compensation plan is an unfunded plan which allows certain highly compensated employees, at their election, to defer a portion of their compensation. This plan was closed to future deferral elections by participants for performance periods beginning after December 31, 2017. The amounts deferred under this plan are held in a grantor trust. The Company invests, as a principal, in investments to economically hedge its obligation under the nonqualified deferred compensation plan. Investments in the grantor trust, consisting of mutual funds, totaled $18.8 million and $16.3 million as of September 30, 2021 and December 31, 2020, respectively, and are included in investments on the consolidated statements of financial condition. A corresponding deferred compensation liability is included in accrued compensation on the consolidated statements of financial condition. The compensation deferred by the employees was expensed in the period earned. Changes in the fair value of the investments made by the Company are reported in investment income and changes in the corresponding deferred compensation liability are reflected as compensation and benefits expense on the consolidated statements of operations. In addition to the 2019 Inducement Plan established in conjunction with its acquisition of Weeden & Co., the Company entered into acquisition-related compensation arrangements with certain Weeden & Co. equity owners, a portion of whom are now employees of the Company. Additional cash of up to $31.5 million was available to be earned if a net revenue target was achieved during the period from January 1, 2020 to June 30, 2021 ("Weeden Earnout"). The Company accrued $31.5 million related to this additional cash payment, which was paid in September 2021. Amounts payable to employees were recorded as compensation expense on the consolidated statements of operations over the requisite service period. Amounts payable to non-employee equity holders were recorded as a liability as of the acquisition date and adjusted through the statement of operations for any changes after the acquisition date. The Company recorded $2.2 million in non-interest expenses related to the Weeden Earnout for the three months ended September 30, 2021 and 2020, and $6.5 million and $22.0 million for the nine months ended September 30, 2021 and 2020, respectively. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share ("EPS") Basic earnings/(loss) per common share is computed by dividing net income/(loss) applicable to Piper Sandler Companies by the weighted average number of common shares outstanding for the period. Diluted earnings/(loss) per common share is calculated by adjusting the weighted average outstanding shares to assume conversion of all potentially dilutive stock options, restricted stock units and non-participating restricted shares. The computation of EPS is as follows: Three Months Ended Nine Months Ended September 30, September 30, (Amounts in thousands, except per share data) 2021 2020 2021 2020 Net income/(loss) applicable to Piper Sandler Companies $ 45,721 $ 11,617 $ 165,001 $ (1,656) Shares for basic and diluted calculations: Average shares used in basic computation 14,213 13,778 14,314 13,789 Stock options 17 — 9 — Restricted stock units 204 153 171 119 Non-participating restricted shares (1) 2,613 923 2,327 672 Average shares used in diluted computation 17,047 14,853 16,821 14,580 (2) Earnings/(loss) per common share: Basic $ 3.22 $ 0.84 $ 11.53 $ (0.12) Diluted $ 2.68 $ 0.78 $ 9.81 $ (0.12) (2) (1) Dividends on non-participating restricted shares are forfeitable until vested. (2) Earnings per diluted common share is calculated using the basic weighted average number of common shares outstanding for periods in which a loss is incurred. The anti-dilutive effects from stock options and non-participating restricted shares were immaterial for the nine months ended September 30, 2021. The average shares used in the diluted computation excluded anti-dilutive stock options and non-participating restricted shares of 0.8 million and 2.2 million for the three and nine months ended September 30, 2020, respectively. |
Revenues and Business Informati
Revenues and Business Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Revenues and Business Information | Revenues and Business Information The Company's activities as an investment bank and institutional securities firm constitute a single business segment. The substantial majority of the Company's net revenues and long-lived assets are located in the U.S. Reportable financial results are as follows: Three Months Ended Nine Months Ended September 30, September 30, (Amounts in thousands) 2021 2020 2021 2020 Investment banking Advisory services $ 214,165 $ 77,250 $ 615,682 $ 274,045 Corporate financing 79,065 99,528 297,602 208,152 Municipal financing 42,373 26,457 105,540 79,863 Total investment banking 335,603 203,235 1,018,824 562,060 Institutional brokerage Equity brokerage 34,062 33,439 112,169 121,936 Fixed income services 56,037 53,325 183,248 143,310 Total institutional brokerage 90,099 86,764 295,417 265,246 Interest income 1,485 2,095 5,215 11,225 Investment income 21,046 15,080 71,508 4,987 Total revenues 448,233 307,174 1,390,964 843,518 Interest expense 2,668 3,455 8,144 11,193 Net revenues 445,565 303,719 1,382,820 832,325 Non-interest expenses 369,855 279,070 1,110,183 834,308 Pre-tax income/(loss) $ 75,710 $ 24,649 $ 272,637 $ (1,983) Pre-tax margin 17.0 % 8.1 % 19.7 % (0.2) % |
Net Capital Requirements and Ot
Net Capital Requirements and Other Regulatory Matters | 9 Months Ended |
Sep. 30, 2021 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Net Capital Requirements and Other Regulatory Matters | Net Capital Requirements and Other Regulatory Matters Piper Sandler is registered as a securities broker dealer with the SEC and is a member of various SROs and securities exchanges. The Financial Industry Regulatory Authority, Inc. ("FINRA") serves as Piper Sandler's primary SRO. Piper Sandler is subject to the uniform net capital rule of the SEC and the net capital rule of FINRA. Piper Sandler has elected to use the alternative method permitted by the SEC rule which requires that it maintain minimum net capital of $1.0 million. Advances to affiliates, repayment of subordinated debt, dividend payments and other equity withdrawals by Piper Sandler are subject to certain approvals, notifications and other provisions of SEC and FINRA rules. At September 30, 2021, net capital calculated under the SEC rule was $279.4 million, and exceeded the minimum net capital required under the SEC rule by $278.4 million. The Company's committed short-term credit facility, revolving credit facility and its Notes with PIMCO include covenants requiring Piper Sandler to maintain minimum net capital of $120 million. The Company's fully disclosed clearing agreement with Pershing includes a covenant requiring Piper Sandler to maintain excess net capital of $120 million. Piper Sandler Ltd., a broker dealer subsidiary registered in the United Kingdom, is subject to the capital requirements of the Prudential Regulation Authority and the Financial Conduct Authority. As of September 30, 2021, Piper Sandler Ltd. was in compliance with the capital requirements of the Prudential Regulation Authority and the Financial Conduct Authority. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded income tax expense of $23.5 million and $5.7 million for the three months ended September 30, 2021 and 2020, respectively. The Company recorded income tax expense of $67.9 million and an income tax benefit of $1.4 million for the nine months ended September 30, 2021 and 2020, respectively. Income tax expense/(benefit) included a tax benefit of $2.3 million and $0.2 million for the nine months ended September 30, 2021 and 2020, respectively, related to stock-based compensation awards vesting at values greater than the grant price. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventOn October 14, 2021, the Company announced a definitive agreement to acquire Cornerstone Macro, an independent research firm focused on providing macro research and equity derivatives trading to institutional investors. The purchase price consists of cash consideration, and restricted stock will be granted for retention purposes. Additional cash consideration may be earned if certain revenue targets are achieved. The transaction is expected to close in the first quarter of 2022, subject to obtaining required regulatory approvals and other customary closing conditions. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Estimated fair values of assets acquired and liabilities assumed | The following table summarizes the estimated fair values of assets acquired and liabilities assumed at the date of the acquisition, including measurement period adjustments: (Amounts in thousands) Assets Cash and cash equivalents $ 27,420 Receivables from brokers, dealers and clearing organizations 192,675 Fixed assets 6,789 Goodwill 94,360 Intangible assets 157,800 Investments 685 Right-of-use lease asset 39,607 Other assets 9,628 Total assets acquired 528,964 Liabilities Accrued compensation 71,398 Accrued lease liability 39,613 Other liabilities and accrued expenses 16,441 Due to Sandler O'Neill (1) 40,673 Total liabilities assumed 168,125 Net assets acquired $ 360,839 (1) Represents the amount of excess tangible book value received by the Company on the date of acquisition. The following table summarizes the estimated fair values of assets acquired and liabilities assumed at the date of the acquisition: (Amounts in thousands) Assets Cash and cash equivalents $ 8,181 Fixed assets 256 Goodwill 33,300 Intangible assets 14,800 Right-of-use lease asset 3,279 Other assets 4,190 Total assets acquired 64,006 Liabilities Accrued lease liability 3,279 Other liabilities and accrued expenses 10,393 Total liabilities assumed 13,672 Net assets acquired $ 50,334 The following table summarizes the estimated fair values of assets acquired and liabilities assumed at the date of the acquisition, including measurement period adjustments: (Amounts in thousands) Assets Cash and cash equivalents $ 7 Goodwill 12,199 Intangible assets 5,300 Right-of-use lease asset 1,818 Other assets 6,215 Total assets acquired 25,539 Liabilities Accrued lease liability 1,818 Other liabilities and accrued expenses 7 Total liabilities assumed 1,825 Net assets acquired $ 23,714 |
Unaudited pro forma information | Three Months Ended Nine Months Ended (Amounts in thousands) September 30, 2020 September 30, 2020 Net revenues $ 314,415 $ 865,489 Net income applicable to Piper Sandler Companies 14,085 130 |
Financial Instruments and Oth_2
Financial Instruments and Other Inventory Positions Owned and Financial Instruments and Other Inventory Positions Sold, but Not Yet Purchased (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Financial Instruments Owned and Sold, Not yet Purchased [Abstract] | |
Financial Instruments and Other Inventory Positions Owned and Financial Instruments and Other Inventory Positions Sold, but Not Yet Purchased by Type | September 30, December 31, (Amounts in thousands) 2021 2020 Financial instruments and other inventory positions owned: Corporate securities: Equity securities $ 5,780 $ 1,349 Convertible securities 150,979 146,088 Fixed income securities 21,556 18,432 Municipal securities: Taxable securities 23,330 6,267 Tax-exempt securities 117,212 67,944 Short-term securities 56,486 28,592 Mortgage-backed securities 13 13 U.S. government agency securities 51,838 9,146 U.S. government securities 48 100,275 Derivative contracts 23,573 23,446 Total financial instruments and other inventory positions owned $ 450,815 $ 401,552 Financial instruments and other inventory positions sold, but not yet purchased: Corporate securities: Equity securities $ 62,407 $ 105,190 Fixed income securities 5,468 18,789 U.S. government securities 58,277 21,669 Derivative contracts 5,397 5,382 Total financial instruments and other inventory positions sold, but not yet purchased $ 131,549 $ 151,030 |
Schedule of Gross Fair Market Value and Total Absolute Notional Contract Amount | 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: September 30, 2021 December 31, 2020 (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 $ 167,273 $ 159,009 $ 1,727,396 $ 233,116 $ 223,218 $ 1,955,131 Trading securities 525 752 132,025 — 4,225 55,375 $ 167,798 $ 159,761 $ 1,859,421 $ 233,116 $ 227,443 $ 2,010,506 (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. |
Unrealized Gains/(Losses) on Derivative Instruments | The following table presents the Company's unrealized gains/(losses) on derivative instruments: Three Months Ended Nine Months Ended (Amounts in thousands) September 30, September 30, Derivative Category Operations Category 2021 2020 2021 2020 Interest rate derivative contract Investment banking $ (175) $ (232) $ (1,326) $ (1,164) Interest rate derivative contract Institutional brokerage 596 154 3,691 (1,439) Equity option derivative contracts Institutional brokerage (123) 228 — 228 $ 298 $ 150 $ 2,365 $ (2,375) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Information about Significant Unobservable Inputs used in Fair Value Measurement | 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 September 30, 2021: Valuation Weighted Technique Unobservable Input Range Average (1) Assets Financial instruments and other inventory positions owned: Municipal securities: Tax-exempt securities Discounted cash flow Expected recovery rate (% of par) (2) 0 - 25% 13.4% Derivative contracts: Interest rate locks Discounted cash flow Premium over the MMD curve in basis points ("bps") (2) 1 - 41 bps 17.1 bps Investments at fair value: Equity securities in private companies Market approach Revenue multiple (2) 2 - 7 times 4.4 times EBITDA multiple (2) 12 - 13 times 12.1 times Liabilities Financial instruments and other inventory positions sold, but not yet purchased: Derivative contracts: Interest rate locks Discounted cash flow Premium over the MMD curve in bps (3) 1 - 27 bps 14.3 bps Uncertainty of fair value measurements: (1) Unobservable inputs were weighted by the relative fair value of the financial instruments. (2) Significant increase/(decrease) in the unobservable input in isolation would have resulted in a significantly higher/(lower) fair value measurement. (3) Significant increase/(decrease) in the unobservable input in isolation would have resulted in a significantly lower/(higher) fair value measurement. |
Valuation of Financial Instruments by Pricing Observability Levels | 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 September 30, 2021: 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 $ 692 $ 5,088 $ — $ — $ 5,780 Convertible securities — 150,979 — — 150,979 Fixed income securities — 21,556 — — 21,556 Municipal securities: Taxable securities — 23,330 — — 23,330 Tax-exempt securities — 116,931 281 — 117,212 Short-term securities — 56,486 — — 56,486 Mortgage-backed securities — — 13 — 13 U.S. government agency securities — 51,838 — — 51,838 U.S. government securities 48 — — — 48 Derivative contracts — 166,682 1,116 (144,225) 23,573 Total financial instruments and other inventory positions owned 740 592,890 1,410 (144,225) 450,815 Cash equivalents 524,920 — — — 524,920 Investments at fair value (2) 21,330 44,718 157,405 — 223,453 Total assets $ 546,990 $ 637,608 $ 158,815 $ (144,225) $ 1,199,188 Liabilities Financial instruments and other inventory positions sold, but not yet purchased: Corporate securities: Equity securities $ 60,902 $ 1,505 $ — $ — $ 62,407 Fixed income securities — 5,468 — — 5,468 U.S. government securities 58,277 — — — 58,277 Derivative contracts — 158,900 861 (154,364) 5,397 Total financial instruments and other inventory positions sold, but not yet purchased $ 119,179 $ 165,873 $ 861 $ (154,364) $ 131,549 (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 $136.3 million primarily attributable to unrelated third party ownership in consolidated merchant banking funds. The following table summarizes the valuation of the Company's financial instruments by pricing observability levels defined in ASC 820 as of December 31, 2020: 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 $ 330 $ 1,019 $ — $ — $ 1,349 Convertible securities — 146,088 — — 146,088 Fixed income securities — 18,432 — — 18,432 Municipal securities: Taxable securities — 6,267 — — 6,267 Tax-exempt securities — 67,944 — — 67,944 Short-term securities — 28,592 — — 28,592 Mortgage-backed securities — — 13 — 13 U.S. government agency securities — 9,146 — — 9,146 U.S. government securities 100,275 — — — 100,275 Derivative contracts — 232,846 270 (209,670) 23,446 Total financial instruments and other inventory positions owned 100,605 510,334 283 (209,670) 401,552 Cash equivalents 468,091 — — — 468,091 Investments at fair value (2) 16,496 5,358 152,995 — 174,849 Total assets $ 585,192 $ 515,692 $ 153,278 $ (209,670) $ 1,044,492 Liabilities Financial instruments and other inventory positions sold, but not yet purchased: Corporate securities: Equity securities $ 102,013 $ 3,177 $ — $ — $ 105,190 Fixed income securities — 18,789 — — 18,789 U.S. government securities 21,669 — — — 21,669 Derivative contracts — 223,737 3,706 (222,061) 5,382 Total financial instruments and other inventory positions sold, but not yet purchased $ 123,682 $ 245,703 $ 3,706 $ (222,061) $ 151,030 (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 $94.9 million primarily attributable to unrelated third party ownership in consolidated merchant banking funds. |
Changes in Fair Value Associated with Level III Financial Instruments | The following tables summarize the changes in fair value associated with Level III financial instruments held at the beginning or end of the periods presented: Unrealized gains/ (losses) for assets/ Balance at Realized Unrealized Balance at liabilities held at June 30, Transfers Transfers gains/ gains/ September 30, September 30, (Amounts in thousands) 2021 Purchases Sales in out (losses) (losses) 2021 2021 Assets Financial instruments and other inventory positions owned: Municipal securities: Tax-exempt securities $ 528 $ — $ — $ — $ — $ — $ (247) $ 281 $ (247) Mortgage-backed securities 13 — — — — — — 13 — Derivative contracts 628 120 (450) — — 330 488 1,116 681 Total financial instruments and other inventory positions owned 1,169 120 (450) — — 330 241 1,410 434 Investments at fair value 135,035 4,000 (3,897) — (54) 1,091 21,230 157,405 20,202 Total assets $ 136,204 $ 4,120 $ (4,347) $ — $ (54) $ 1,421 $ 21,471 $ 158,815 $ 20,636 Liabilities Financial instruments and other inventory positions sold, but not yet purchased: Derivative contracts $ 968 $ (1,016) $ — $ — $ — $ 1,016 $ (107) $ 861 $ 245 Total financial instruments and other inventory positions sold, but not yet purchased $ 968 $ (1,016) $ — $ — $ — $ 1,016 $ (107) $ 861 $ 245 Unrealized gains/ (losses) for assets/ Balance at Realized Unrealized Balance at liabilities held at June 30, Transfers Transfers gains/ gains/ September 30, September 30, (Amounts in thousands) 2020 Purchases Sales in out (losses) (losses) 2020 2020 Assets Financial instruments and other inventory positions owned: Mortgage-backed securities $ 13 $ — $ — $ — $ — $ — $ — $ 13 $ — Derivative contracts 64 107 (310) — — 203 310 374 374 Total financial instruments and other inventory positions owned 77 107 (310) — — 203 310 387 374 Investments at fair value 120,615 15,850 (1,013) — — 1,013 9,807 146,272 9,807 Total assets $ 120,692 $ 15,957 $ (1,323) $ — $ — $ 1,216 $ 10,117 $ 146,659 $ 10,181 Liabilities Financial instruments and other inventory positions sold, but not yet purchased: Derivative contracts $ 3,212 $ (880) $ — $ — $ — $ 880 $ 157 $ 3,369 $ 679 Total financial instruments and other inventory positions sold, but not yet purchased $ 3,212 $ (880) $ — $ — $ — $ 880 $ 157 $ 3,369 $ 679 Unrealized gains/ (losses) for assets/ Balance at Realized Unrealized Balance at liabilities held at December 31, Transfers Transfers gains/ gains/ September 30, September 30, (Amounts in thousands) 2020 Purchases Sales in out (losses) (losses) 2021 2021 Assets Financial instruments and other inventory positions owned: Municipal securities: Tax-exempt securities $ — $ — $ — $ 528 $ — $ — $ (247) $ 281 $ (247) Mortgage-backed securities 13 — — — — — — 13 — Derivative contracts 270 143 (1,030) — — 888 845 1,116 1,116 Total financial instruments and other inventory positions owned 283 143 (1,030) 528 — 888 598 1,410 869 Investments at fair value 152,995 12,044 (24,784) — (42,671) 17,986 41,835 157,405 35,397 Total assets $ 153,278 $ 12,187 $ (25,814) $ 528 $ (42,671) $ 18,874 $ 42,433 $ 158,815 $ 36,266 Liabilities Financial instruments and other inventory positions sold, but not yet purchased: Derivative contracts $ 3,706 $ (4,444) $ 29 $ — $ — $ 4,414 $ (2,844) $ 861 $ 861 Total financial instruments and other inventory positions sold, but not yet purchased $ 3,706 $ (4,444) $ 29 $ — $ — $ 4,414 $ (2,844) $ 861 $ 861 Unrealized gains/ (losses) for assets/ Balance at Realized Unrealized Balance at liabilities held at December 31, Transfers Transfers gains/ gains/ September 30, September 30, (Amounts in thousands) 2019 Purchases Sales in out (losses) (losses) 2020 2020 Assets Financial instruments and other inventory positions owned: Mortgage-backed securities $ 13 $ — $ — $ — $ — $ — $ — $ 13 $ — Derivative contracts 8 857 (370) — — (487) 366 374 374 Total financial instruments and other inventory positions owned 21 857 (370) — — (487) 366 387 374 Investments at fair value 132,329 16,133 (1,178) — (130) (4,490) 3,608 146,272 (1,893) Total assets $ 132,350 $ 16,990 $ (1,548) $ — $ (130) $ (4,977) $ 3,974 $ 146,659 $ (1,519) Liabilities Financial instruments and other inventory positions sold, but not yet purchased: Derivative contracts $ 1,563 $ (13,627) $ 371 $ — $ — $ 13,256 $ 1,806 $ 3,369 $ 3,358 Total financial instruments and other inventory positions sold, but not yet purchased $ 1,563 $ (13,627) $ 371 $ — $ — $ 13,256 $ 1,806 $ 3,369 $ 3,358 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Items Included in Consolidated Statement of Financial Condition [Abstract] | |
Schedule of Consolidated Variable Interest Entities | The following table presents information about the carrying value of the assets and liabilities of the VIEs which are consolidated by the Company and included on the consolidated statements of financial condition at September 30, 2021. 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. One of these VIEs has $25.0 million of bank line financing available with an interest rate based on prime plus an applicable margin. The assets and liabilities are presented prior to consolidation, and thus a portion of these assets and liabilities are eliminated in consolidation. Alternative Asset (Amounts in thousands) Management Funds Assets Investments $ 201,789 Other assets 2,809 Total assets $ 204,598 Liabilities Other liabilities and accrued expenses $ 9,473 Total liabilities $ 9,473 |
Receivables from and Payables_2
Receivables from and Payables to Brokers, Dealers and Clearing Organizations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Brokers and Dealers [Abstract] | |
Schedule of Receivables from and Payables to Brokers, Dealers and Clearing Organizations | September 30, December 31, (Amounts in thousands) 2021 2020 Receivable from clearing organizations $ 192,460 $ 184,662 Receivable from brokers and dealers 29,862 33,514 Other 3,412 3,315 Total receivables from brokers, dealers and clearing organizations $ 225,734 $ 221,491 September 30, December 31, (Amounts in thousands) 2021 2020 Payable to brokers and dealers $ 8,590 $ 18,591 Total payables to brokers, dealers and clearing organizations $ 8,590 $ 18,591 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, All Other Investments [Abstract] | |
Schedule of Investments | September 30, December 31, (Amounts in thousands) 2021 2020 Investments at fair value $ 223,453 $ 174,849 Investments at cost 611 611 Investments accounted for under the equity method 11,149 7,719 Total investments 235,213 183,179 Less investments attributable to noncontrolling interests (1) (136,278) (94,900) $ 98,935 $ 88,279 (1) Noncontrolling interests are primarily attributable to unrelated third party ownership in consolidated merchant banking funds. |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | September 30, December 31, (Amounts in thousands) 2021 2020 Fee receivables $ 48,598 $ 38,840 Accrued interest receivables 1,483 1,474 Forgivable loans, net 11,313 5,526 Prepaid expenses 17,416 14,585 Income tax receivables 5,019 — Other 16,383 14,618 Total other assets $ 100,212 $ 75,043 |
Restructuring and Integration_2
Restructuring and Integration Costs (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Pre-tax Restructuring Costs | Three Months Ended Nine Months Ended September 30, September 30, (Amounts in thousands) 2021 2020 2021 2020 Vacated leased office space $ — $ 1,820 $ 3,404 $ 1,908 Severance, benefits and outplacement — 6 — 2,927 Contract termination — (123) — (590) Total restructuring costs — 1,703 3,404 4,245 Integration costs 314 (111) 478 2,973 Total restructuring and integration costs $ 314 $ 1,592 $ 3,882 $ 7,218 |
Compensation Plans (Tables)
Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Outstanding Equity Awards | The following table provides a summary of the Company's outstanding equity awards (in shares or units) as of September 30, 2021: Incentive Plan Restricted Stock Annual grants 533,024 Sign-on grants 92,245 625,269 2019 Inducement Plan Restricted Stock 96,000 2020 Inducement Plan Restricted Stock 1,277,958 Total restricted stock related to compensation plans 1,999,227 Restricted stock related to acquisitions (1) 1,816,211 Total restricted stock outstanding 3,815,438 Incentive Plan Restricted Stock Units 158,393 Incentive Plan Stock Options 81,667 (1) The Company issued restricted stock with service conditions in conjunction with the acquisitions of Sandler O'Neill, Valence and TRS. See Note 3 for further discussion. |
Schedule of RSU Performance Condition Probability | As of September 30, 2021, the Company has determined that the probability of achieving the performance condition for each award is as follows: Probability of Achieving Grant Year Performance Condition 2021 75% 2020 75% 2019 75% |
Schedule of RSU Valuation Assumptions | For this portion of the awards, the fair value on the grant date was determined using a Monte Carlo simulation with the following assumptions: Risk-free Expected Stock Grant Year Interest Rate Price Volatility 2021 0.23% 43.2% 2020 1.40% 27.3% 2019 2.50% 31.9% 2018 2.40% 34.8% 2017 1.62% 35.9% |
Schedule of Stock Options Valuation Assumptions | The fair value of this stock option award was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: Risk-free interest rate 2.82 % Dividend yield 3.22 % Expected stock price volatility 37.20 % Expected life of options (in years) 7.0 Fair value of options granted (per share) $ 24.49 |
Schedule of Stock-Based Compensation Expense | The following table summarizes the Company's stock-based compensation activity: Three Months Ended Nine Months Ended September 30, September 30, (Amounts in millions) 2021 2020 2021 2020 Stock-based compensation expense $ 40.5 $ 29.9 $ 118.1 $ 79.5 Forfeitures 0.2 0.9 1.5 2.1 Tax benefit related to stock-based compensation expense 5.3 3.9 16.0 10.3 |
Changes in Unvested Restricted Stock | The following table summarizes the changes in the Company's unvested restricted stock: Unvested Weighted Average Restricted Stock Grant Date (in Shares) Fair Value December 31, 2020 4,312,557 $ 74.99 Granted 351,244 107.65 Vested (828,926) 80.87 Canceled (19,437) 89.83 September 30, 2021 3,815,438 $ 76.64 |
Changes in Unvested Restricted Stock Units | The following table summarizes the changes in the Company's unvested restricted stock units: Unvested Weighted Average Restricted Grant Date Stock Units Fair Value December 31, 2020 146,048 $ 85.60 Granted 62,569 103.69 Vested (50,224) 92.93 Canceled — — September 30, 2021 158,393 $ 90.43 |
Changes in Outstanding Stock Options | The following table summarizes the changes in the Company's outstanding stock options: Weighted Average Weighted Remaining Options Average Contractual Term Aggregate Outstanding Exercise Price (in Years) Intrinsic Value December 31, 2020 81,667 $ 99.00 7.1 $ 155,167 Granted — — Exercised — — Canceled — — Expired — — September 30, 2021 81,667 $ 99.00 6.4 $ 3,222,580 Options exercisable at September 30, 2021 27,222 $ 99.00 6.4 $ 1,074,180 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Earnings per Share | The computation of EPS is as follows: Three Months Ended Nine Months Ended September 30, September 30, (Amounts in thousands, except per share data) 2021 2020 2021 2020 Net income/(loss) applicable to Piper Sandler Companies $ 45,721 $ 11,617 $ 165,001 $ (1,656) Shares for basic and diluted calculations: Average shares used in basic computation 14,213 13,778 14,314 13,789 Stock options 17 — 9 — Restricted stock units 204 153 171 119 Non-participating restricted shares (1) 2,613 923 2,327 672 Average shares used in diluted computation 17,047 14,853 16,821 14,580 (2) Earnings/(loss) per common share: Basic $ 3.22 $ 0.84 $ 11.53 $ (0.12) Diluted $ 2.68 $ 0.78 $ 9.81 $ (0.12) (2) (1) Dividends on non-participating restricted shares are forfeitable until vested. (2) Earnings per diluted common share is calculated using the basic weighted average number of common shares outstanding for periods in which a loss is incurred. |
Revenues and Business Informa_2
Revenues and Business Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Reportable Segment Financial Results | Reportable financial results are as follows: Three Months Ended Nine Months Ended September 30, September 30, (Amounts in thousands) 2021 2020 2021 2020 Investment banking Advisory services $ 214,165 $ 77,250 $ 615,682 $ 274,045 Corporate financing 79,065 99,528 297,602 208,152 Municipal financing 42,373 26,457 105,540 79,863 Total investment banking 335,603 203,235 1,018,824 562,060 Institutional brokerage Equity brokerage 34,062 33,439 112,169 121,936 Fixed income services 56,037 53,325 183,248 143,310 Total institutional brokerage 90,099 86,764 295,417 265,246 Interest income 1,485 2,095 5,215 11,225 Investment income 21,046 15,080 71,508 4,987 Total revenues 448,233 307,174 1,390,964 843,518 Interest expense 2,668 3,455 8,144 11,193 Net revenues 445,565 303,719 1,382,820 832,325 Non-interest expenses 369,855 279,070 1,110,183 834,308 Pre-tax income/(loss) $ 75,710 $ 24,649 $ 272,637 $ (1,983) Pre-tax margin 17.0 % 8.1 % 19.7 % (0.2) % |
Organization and Basis of Pre_2
Organization and Basis of Presentation - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2021segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Acquisitions - Acquisition of S
Acquisitions - Acquisition of SOP Holdings, LLC (Details) - USD ($) $ in Thousands | Jan. 03, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Business Acquisition | |||||
Transaction costs | $ 314 | $ (111) | $ 478 | $ 2,973 | |
Sandler O'Neill | |||||
Business Acquisition | |||||
Economic value at announcement | $ 485,000 | ||||
Amount of tangible book value the Company was entitled to receive | $ 100,000 | ||||
Shares granted in conjunction with the acquisition (in shares) | 1,568,670 | ||||
Value of shares granted in conjunction with the acquisition | $ 124,900 | ||||
Shares granted as equity consideration (in shares) | 34,205 | ||||
Equity consideration | $ 2,700 | ||||
Cash consideration | 358,100 | ||||
Net assets acquired | 360,839 | ||||
Acquisition-related compensation arrangements | 113,900 | ||||
Goodwill recorded | 94,400 | ||||
Goodwill, amount expected to be deductible for income tax purposes | 93,400 | ||||
Intangible assets | 157,800 | ||||
Transaction costs | $ 1,100 | ||||
Sandler O'Neill | Trade name | |||||
Business Acquisition | |||||
Intangible assets | 85,400 | ||||
Sandler O'Neill | Customer relationships | |||||
Business Acquisition | |||||
Intangible assets | 72,400 | ||||
Sandler O'Neill | Deal Consideration | |||||
Business Acquisition | |||||
Net assets acquired | $ 360,800 | ||||
Sandler O'Neill | Restricted Stock | |||||
Business Acquisition | |||||
Shares granted in conjunction with the acquisition (in shares) | 1,534,465 | ||||
Value of shares granted in conjunction with the acquisition | $ 122,200 | ||||
Vesting period | 3 years | ||||
Requisite service period | 3 years | ||||
Acquisition-related compensation arrangements | $ 96,900 | ||||
Sandler O'Neill | Restricted Stock | Weighted Average | |||||
Business Acquisition | |||||
Award vesting period in years | 3 years 8 months 12 days | ||||
Sandler O'Neill | Restricted Stock | 18 Month Vesting Period | |||||
Business Acquisition | |||||
Award vesting period in years | 18 months | ||||
Sandler O'Neill | Restricted Stock | Three Year Vesting Period | |||||
Business Acquisition | |||||
Award vesting period in years | 3 years | ||||
Sandler O'Neill | Restricted Stock | Five Year Vesting Period | |||||
Business Acquisition | |||||
Award vesting period in years | 5 years | ||||
Sandler O'Neill | Restricted cash | |||||
Business Acquisition | |||||
Acquisition-related compensation arrangements | $ 17,000 |
Acquisitions - Sandler O'Neill
Acquisitions - Sandler O'Neill Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Jan. 03, 2020 |
Assets | |||
Goodwill | $ 227,508 | $ 227,508 | |
Sandler O'Neill | |||
Assets | |||
Cash and cash equivalents | $ 27,420 | ||
Receivables from brokers, dealers and clearing organizations | 192,675 | ||
Fixed assets | 6,789 | ||
Goodwill | 94,360 | ||
Intangible assets | 157,800 | ||
Investments | 685 | ||
Right-of-use lease asset | 39,607 | ||
Other assets | 9,628 | ||
Total assets acquired | 528,964 | ||
Liabilities | |||
Accrued compensation | 71,398 | ||
Accrued lease liability | 39,613 | ||
Other liabilities and accrued expenses | 16,441 | ||
Due to Sandler O'Neill | 40,673 | ||
Total liabilities assumed | 168,125 | ||
Net Assets Acquired | |||
Net assets acquired | $ 360,839 |
Acquisitions - Acquisition of T
Acquisitions - Acquisition of The Valence Group (Details) - USD ($) $ in Thousands | Apr. 03, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Business Acquisition | |||||
Transaction costs | $ 314 | $ (111) | $ 478 | $ 2,973 | |
The Valence Group | |||||
Business Acquisition | |||||
Cash consideration | $ 30,300 | ||||
Unsecured promissory notes entered into as part of the purchase price | 20,000 | ||||
Net assets acquired | $ 50,334 | ||||
Earn out performance period (in years) | three | ||||
Goodwill recorded | $ 33,300 | ||||
Intangible assets | 14,800 | ||||
Transaction costs | $ 100 | $ 2,100 | |||
The Valence Group | Customer relationships | |||||
Business Acquisition | |||||
Intangible assets | $ 14,800 | ||||
The Valence Group | Revenue threshold | |||||
Business Acquisition | |||||
Amount accrued related to earnout | $ 10,000 | $ 10,000 | |||
The Valence Group | Restricted Stock | |||||
Business Acquisition | |||||
Shares granted in conjunction with the acquisition (in shares) | 647,268 | ||||
Value of shares granted in conjunction with the acquisition | $ 31,200 | ||||
Acquisition-related compensation arrangements | $ 5,500 | ||||
Vesting period | 5 years | ||||
The Valence Group | Restricted Stock | Five Year Vesting Period | |||||
Business Acquisition | |||||
Award vesting period in years | 5 years | ||||
The Valence Group | Deal Consideration | |||||
Business Acquisition | |||||
Net assets acquired | $ 50,300 |
Acquisitions - Valence Estimate
Acquisitions - Valence Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Apr. 03, 2020 |
Assets | |||
Goodwill | $ 227,508 | $ 227,508 | |
The Valence Group | |||
Assets | |||
Cash and cash equivalents | $ 8,181 | ||
Fixed assets | 256 | ||
Goodwill | 33,300 | ||
Intangible assets | 14,800 | ||
Right-of-use lease asset | 3,279 | ||
Other assets | 4,190 | ||
Total assets acquired | 64,006 | ||
Liabilities | |||
Accrued lease liability | 3,279 | ||
Other liabilities and accrued expenses | 10,393 | ||
Total liabilities assumed | 13,672 | ||
Net Assets Acquired | |||
Net assets acquired | $ 50,334 |
Acquisitions - Acquisition of_2
Acquisitions - Acquisition of TRS Advisors LLC (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Business Acquisition | |||||
Transaction costs | $ 314 | $ (111) | $ 478 | $ 2,973 | |
TRS Advisors, LLC | |||||
Business Acquisition | |||||
Cash consideration | $ 23,700 | ||||
Earn out performance period (in years) | three | ||||
Goodwill recorded | $ 12,200 | ||||
Intangible assets | 5,300 | ||||
Transaction costs | 100 | ||||
TRS Advisors, LLC | Customer relationships | |||||
Business Acquisition | |||||
Intangible assets | 5,300 | ||||
TRS Advisors, LLC | Revenue threshold | |||||
Business Acquisition | |||||
Additional cash consideration, maximum amount | $ 7,000 | ||||
Amount accrued related to earnout | $ 1,600 | $ 1,600 | |||
TRS Advisors, LLC | Restricted Stock | |||||
Business Acquisition | |||||
Shares granted in conjunction with the acquisition (in shares) | 145,952 | ||||
Value of shares granted in conjunction with the acquisition | $ 14,700 | ||||
Vesting period | 5 years | ||||
Acquisition-related compensation arrangements | $ 2,900 | ||||
TRS Advisors, LLC | Restricted Stock | Three Year Vesting Period | |||||
Business Acquisition | |||||
Award vesting period in years | 3 years |
Acquisitions - TRS Estimated Fa
Acquisitions - TRS Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Goodwill | $ 227,508 | $ 227,508 |
TRS Advisors, LLC | ||
Assets | ||
Cash and cash equivalents | 7 | |
Goodwill | 12,199 | |
Intangible assets | 5,300 | |
Right-of-use lease asset | 1,818 | |
Other assets | 6,215 | |
Total assets acquired | 25,539 | |
Liabilities | ||
Accrued lease liability | 1,818 | |
Other liabilities and accrued expenses | 7 | |
Total liabilities assumed | 1,825 | |
Net Assets Acquired | ||
Net assets acquired | $ 23,714 |
Acquisitions - Pro Forma Financ
Acquisitions - Pro Forma Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Net revenues | $ 314,415 | $ 865,489 |
Net income applicable to Piper Sandler Companies | $ 14,085 | $ 130 |
Financial Instruments and Oth_3
Financial Instruments and Other Inventory Positions Owned and Financial Instruments and Other Inventory Positions Sold, but Not Yet Purchased - Schedule of Financial Instruments Owned and Financial Instruments Sold, but Not Yet Purchased by Type (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financial instruments and other inventory positions owned: | ||
Equity securities | $ 5,780 | $ 1,349 |
Convertible securities | 150,979 | 146,088 |
Fixed income securities | 21,556 | 18,432 |
Taxable securities | 23,330 | 6,267 |
Tax-exempt securities | 117,212 | 67,944 |
Short-term securities | 56,486 | 28,592 |
Mortgage-backed securities | 13 | 13 |
U.S. government agency securities | 51,838 | 9,146 |
U.S. government securities | 48 | 100,275 |
Derivative contracts | 23,573 | 23,446 |
Total financial instruments and other inventory positions owned | 450,815 | 401,552 |
Financial instruments and other inventory positions sold, but not yet purchased: | ||
Equity securities | 62,407 | 105,190 |
Fixed income securities | 5,468 | 18,789 |
U.S. government securities | 58,277 | 21,669 |
Derivative contracts | 5,397 | 5,382 |
Total financial instruments and other inventory positions sold, but not yet purchased | 131,549 | 151,030 |
Financial instruments and other inventory positions owned and pledged as collateral | $ 117,615 | $ 130,703 |
Financial Instruments and Oth_4
Financial Instruments and Other Inventory Positions Owned and Financial Instruments and Other Inventory Positions Sold, but Not Yet Purchased - Schedule of Gross Fair Market Value and Total Absolute Notional Contract Amount (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Notional amount | $ 1,859,421 | $ 2,010,506 |
Financial instruments and other inventory positions owned | ||
Derivative [Line Items] | ||
Derivative Assets | 167,798 | 233,116 |
Financial instruments and other inventory positions sold, but not yet purchased | ||
Derivative [Line Items] | ||
Derivative Liabilities | 159,761 | 227,443 |
Customer matched-book | Interest rate | ||
Derivative [Line Items] | ||
Notional amount | 1,727,396 | 1,955,131 |
Customer matched-book | Interest rate | Financial instruments and other inventory positions owned | ||
Derivative [Line Items] | ||
Derivative Assets | 167,273 | 233,116 |
Customer matched-book | Interest rate | Financial instruments and other inventory positions sold, but not yet purchased | ||
Derivative [Line Items] | ||
Derivative Liabilities | 159,009 | 223,218 |
Trading securities | Interest rate | ||
Derivative [Line Items] | ||
Notional amount | 132,025 | 55,375 |
Trading securities | Interest rate | Financial instruments and other inventory positions owned | ||
Derivative [Line Items] | ||
Derivative Assets | 525 | 0 |
Trading securities | Interest rate | Financial instruments and other inventory positions sold, but not yet purchased | ||
Derivative [Line Items] | ||
Derivative Liabilities | $ 752 | $ 4,225 |
Financial Instruments and Oth_5
Financial Instruments and Other Inventory Positions Owned and Financial Instruments and Other Inventory Positions Sold, but Not Yet Purchased - Unrealized Gains/(Losses) on Derivative Instruments (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized gains/(losses) on derivative instruments | $ 298 | $ 150 | $ 2,365 | $ (2,375) |
Interest rate derivative contract | Investment banking | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized gains/(losses) on derivative instruments | (175) | (232) | (1,326) | (1,164) |
Interest rate derivative contract | Institutional brokerage | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized gains/(losses) on derivative instruments | 596 | 154 | 3,691 | (1,439) |
Equity options | Institutional brokerage | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized gains/(losses) on derivative instruments | $ (123) | $ 228 | $ 0 | $ 228 |
Financial Instruments and Oth_6
Financial Instruments and Other Inventory Positions Owned and Financial Instruments and Other Inventory Positions Sold, but Not Yet Purchased - Additional Information (Details) - Maximum risk of loss $ in Millions | Sep. 30, 2021USD ($) |
Counterparties not required to post collateral | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Uncollateralized credit exposure | $ 19.8 |
Notional contract amount | 159.7 |
One unnamed financial institutional not required to post collateral | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Uncollateralized credit exposure | $ 16.4 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Information about Significant Unobservable Inputs used in Fair Value Measurement (Details) - Level III | Sep. 30, 2021basis_points |
Financial instruments and other inventory positions sold, but not yet purchased | Interest rate locks | Discounted cash flow | Premium over the MMD curve | Minimum | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Derivative liability contracts, measurement input | 1 |
Financial instruments and other inventory positions sold, but not yet purchased | Interest rate locks | Discounted cash flow | Premium over the MMD curve | Maximum | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Derivative liability contracts, measurement input | 27 |
Financial instruments and other inventory positions sold, but not yet purchased | Interest rate locks | Discounted cash flow | Premium over the MMD curve | Weighted Average | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Derivative liability contracts, measurement input | 14.3 |
Financial instruments and other inventory positions owned | Tax-exempt municipal securities | Discounted cash flow | Expected recovery rate | Minimum | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Tax-exempt securities, measurement input | 0 |
Financial instruments and other inventory positions owned | Tax-exempt municipal securities | Discounted cash flow | Expected recovery rate | Maximum | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Tax-exempt securities, measurement input | 0.25 |
Financial instruments and other inventory positions owned | Tax-exempt municipal securities | Discounted cash flow | Expected recovery rate | Weighted Average | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Tax-exempt securities, measurement input | 0.134 |
Financial instruments and other inventory positions owned | Interest rate locks | Discounted cash flow | Premium over the MMD curve | Minimum | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Derivative asset contracts, measurement input | 1 |
Financial instruments and other inventory positions owned | Interest rate locks | Discounted cash flow | Premium over the MMD curve | Maximum | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Derivative asset contracts, measurement input | 41 |
Financial instruments and other inventory positions owned | Interest rate locks | Discounted cash flow | Premium over the MMD curve | Weighted Average | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Derivative asset contracts, measurement input | 17.1 |
Investments | Equity investment in private company | Market approach | Revenue multiple | Minimum | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Investments at fair value, measurement input | 2 |
Investments | Equity investment in private company | Market approach | Revenue multiple | Maximum | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Investments at fair value, measurement input | 7 |
Investments | Equity investment in private company | Market approach | Revenue multiple | Weighted Average | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Investments at fair value, measurement input | 4.4 |
Investments | Equity investment in private company | Market approach | EBITDA multiple | Minimum | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Investments at fair value, measurement input | 12 |
Investments | Equity investment in private company | Market approach | EBITDA multiple | Maximum | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Investments at fair value, measurement input | 13 |
Investments | Equity investment in private company | Market approach | EBITDA multiple | Weighted Average | |
Fair Value Inputs Assets and Liabilities Quantitative Information [Line Items] | |
Investments at fair value, measurement input | 12.1 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Valuation of Financial Instruments by Pricing Observability Levels (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Equity securities | $ 5,780,000 | $ 1,349,000 |
Convertible securities | 150,979,000 | 146,088,000 |
Fixed income securities | 21,556,000 | 18,432,000 |
Taxable securities | 23,330,000 | 6,267,000 |
Tax-exempt securities | 117,212,000 | 67,944,000 |
Short-term securities | 56,486,000 | 28,592,000 |
Mortgage-backed securities | 13,000 | 13,000 |
U.S. government agency securities | 51,838,000 | 9,146,000 |
U.S. government securities | 48,000 | 100,275,000 |
Derivative contracts | 23,573,000 | 23,446,000 |
Total financial instruments and other inventory positions owned | 450,815,000 | 401,552,000 |
Liabilities | ||
Equity securities | 62,407,000 | 105,190,000 |
Fixed income securities | 5,468,000 | 18,789,000 |
U.S. government securities | 58,277,000 | 21,669,000 |
Derivative contracts | 5,397,000 | 5,382,000 |
Total financial instruments and other inventory positions sold, but not yet purchased | 131,549,000 | 151,030,000 |
Securities posted as collateral | 0 | 0 |
Level III | ||
Assets | ||
Total assets | 158,800,000 | 153,300,000 |
Measured on a recurring basis | ||
Assets | ||
Equity securities | 5,780,000 | 1,349,000 |
Convertible securities | 150,979,000 | 146,088,000 |
Fixed income securities | 21,556,000 | 18,432,000 |
Taxable securities | 23,330,000 | 6,267,000 |
Tax-exempt securities | 117,212,000 | 67,944,000 |
Short-term securities | 56,486,000 | 28,592,000 |
Mortgage-backed securities | 13,000 | 13,000 |
U.S. government agency securities | 51,838,000 | 9,146,000 |
U.S. government securities | 48,000 | 100,275,000 |
Derivative contracts | 23,573,000 | 23,446,000 |
Derivative contracts - counterparty and collateral netting | (144,225,000) | (209,670,000) |
Total financial instruments and other inventory positions owned | 450,815,000 | 401,552,000 |
Cash equivalents | 524,920,000 | 468,091,000 |
Investments at fair value (2) | 223,453,000 | 174,849,000 |
Total assets | 1,199,188,000 | 1,044,492,000 |
Liabilities | ||
Equity securities | 62,407,000 | 105,190,000 |
Fixed income securities | 5,468,000 | 18,789,000 |
U.S. government securities | 58,277,000 | 21,669,000 |
Derivative contracts | 5,397,000 | 5,382,000 |
Derivative contracts - counterparty and collateral netting | (154,364,000) | (222,061,000) |
Total financial instruments and other inventory positions sold, but not yet purchased | 131,549,000 | 151,030,000 |
Measured on a recurring basis | Investments attributable to noncontrolling interests | ||
Assets | ||
Investments at fair value (2) | 136,300,000 | 94,900,000 |
Measured on a recurring basis | Level I | ||
Assets | ||
Equity securities | 692,000 | 330,000 |
U.S. government securities | 48,000 | 100,275,000 |
Total financial instruments and other inventory positions owned | 740,000 | 100,605,000 |
Cash equivalents | 524,920,000 | 468,091,000 |
Investments at fair value (2) | 21,330,000 | 16,496,000 |
Total assets | 546,990,000 | 585,192,000 |
Liabilities | ||
Equity securities | 60,902,000 | 102,013,000 |
U.S. government securities | 58,277,000 | 21,669,000 |
Total financial instruments and other inventory positions sold, but not yet purchased | 119,179,000 | 123,682,000 |
Measured on a recurring basis | Level II | ||
Assets | ||
Equity securities | 5,088,000 | 1,019,000 |
Convertible securities | 150,979,000 | 146,088,000 |
Fixed income securities | 21,556,000 | 18,432,000 |
Taxable securities | 23,330,000 | 6,267,000 |
Tax-exempt securities | 116,931,000 | 67,944,000 |
Short-term securities | 56,486,000 | 28,592,000 |
U.S. government agency securities | 51,838,000 | 9,146,000 |
Derivative contracts | 166,682,000 | 232,846,000 |
Total financial instruments and other inventory positions owned | 592,890,000 | 510,334,000 |
Investments at fair value (2) | 44,718,000 | 5,358,000 |
Total assets | 637,608,000 | 515,692,000 |
Liabilities | ||
Equity securities | 1,505,000 | 3,177,000 |
Fixed income securities | 5,468,000 | 18,789,000 |
Derivative contracts | 158,900,000 | 223,737,000 |
Total financial instruments and other inventory positions sold, but not yet purchased | 165,873,000 | 245,703,000 |
Measured on a recurring basis | Level III | ||
Assets | ||
Tax-exempt securities | 281,000 | |
Mortgage-backed securities | 13,000 | 13,000 |
Derivative contracts | 1,116,000 | 270,000 |
Total financial instruments and other inventory positions owned | 1,410,000 | 283,000 |
Investments at fair value (2) | 157,405,000 | 152,995,000 |
Total assets | 158,815,000 | 153,278,000 |
Liabilities | ||
Derivative contracts | 861,000 | 3,706,000 |
Total financial instruments and other inventory positions sold, but not yet purchased | $ 861,000 | $ 3,706,000 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | $ 54 | $ 0 | $ 42,671 | $ 130 | |
Level III | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Total assets | $ 158,800 | $ 158,800 | $ 153,300 | ||
Percentage of Level III assets to financial instruments measured at fair value | 13.20% | 13.20% | 14.70% | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | $ 42,700 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Changes in Fair Value Associated with Level III Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 136,204 | $ 120,692 | $ 153,278 | $ 132,350 |
Purchases | 4,120 | 15,957 | 12,187 | 16,990 |
Sales | (4,347) | (1,323) | (25,814) | (1,548) |
Transfers in | 0 | 0 | 528 | 0 |
Transfers out | (54) | 0 | (42,671) | (130) |
Realized gains/(losses) | 1,421 | 1,216 | 18,874 | (4,977) |
Unrealized gains/(losses) | 21,471 | 10,117 | 42,433 | 3,974 |
Ending balance | 158,815 | 146,659 | 158,815 | 146,659 |
Unrealized gains/ (losses) for assets held at period end | 20,636 | 10,181 | 36,266 | (1,519) |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 968 | 3,212 | 3,706 | 1,563 |
Purchases | (1,016) | (880) | (4,444) | (13,627) |
Sales | 0 | 0 | 29 | 371 |
Transfers in | 0 | 0 | 0 | 0 |
Transfers out | 0 | 0 | 0 | 0 |
Realized gains/(losses) | 1,016 | 880 | 4,414 | 13,256 |
Unrealized gains/(losses) | (107) | 157 | (2,844) | 1,806 |
Ending balance | 861 | 3,369 | 861 | 3,369 |
Unrealized gains/(losses) for liabilities held at period end | 245 | 679 | 861 | 3,358 |
Financial instruments and other inventory positions sold, but not yet purchased | Derivative contracts | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 968 | 3,212 | 3,706 | 1,563 |
Purchases | (1,016) | (880) | (4,444) | (13,627) |
Sales | 0 | 0 | 29 | 371 |
Transfers in | 0 | 0 | 0 | 0 |
Transfers out | 0 | 0 | 0 | 0 |
Realized gains/(losses) | 1,016 | 880 | 4,414 | 13,256 |
Unrealized gains/(losses) | (107) | 157 | (2,844) | 1,806 |
Ending balance | 861 | 3,369 | 861 | 3,369 |
Unrealized gains/(losses) for liabilities held at period end | 245 | 679 | 861 | 3,358 |
Financial instruments and other inventory positions owned | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 1,169 | 77 | 283 | 21 |
Purchases | 120 | 107 | 143 | 857 |
Sales | (450) | (310) | (1,030) | (370) |
Transfers in | 528 | |||
Transfers out | 0 | 0 | 0 | 0 |
Realized gains/(losses) | 330 | 203 | 888 | (487) |
Unrealized gains/(losses) | 241 | 310 | 598 | 366 |
Ending balance | 1,410 | 387 | 1,410 | 387 |
Unrealized gains/ (losses) for assets held at period end | 434 | 374 | 869 | 374 |
Financial instruments and other inventory positions owned | Tax-exempt municipal securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 528 | |||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Transfers in | 0 | 528 | ||
Transfers out | 0 | 0 | ||
Realized gains/(losses) | 0 | 0 | ||
Unrealized gains/(losses) | (247) | (247) | ||
Ending balance | 281 | 281 | ||
Unrealized gains/ (losses) for assets held at period end | (247) | (247) | ||
Financial instruments and other inventory positions owned | Mortgage-backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 13 | 13 | 13 | 13 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Transfers in | 0 | 0 | 0 | 0 |
Transfers out | 0 | 0 | 0 | 0 |
Realized gains/(losses) | 0 | 0 | 0 | 0 |
Unrealized gains/(losses) | 0 | 0 | 0 | 0 |
Ending balance | 13 | 13 | 13 | 13 |
Unrealized gains/ (losses) for assets held at period end | 0 | 0 | 0 | 0 |
Financial instruments and other inventory positions owned | Derivative contracts | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 628 | 64 | 270 | 8 |
Purchases | 120 | 107 | 143 | 857 |
Sales | (450) | (310) | (1,030) | (370) |
Transfers in | 0 | 0 | 0 | 0 |
Transfers out | 0 | 0 | 0 | 0 |
Realized gains/(losses) | 330 | 203 | 888 | (487) |
Unrealized gains/(losses) | 488 | 310 | 845 | 366 |
Ending balance | 1,116 | 374 | 1,116 | 374 |
Unrealized gains/ (losses) for assets held at period end | 681 | 374 | 1,116 | 374 |
Investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 135,035 | 120,615 | 152,995 | 132,329 |
Purchases | 4,000 | 15,850 | 12,044 | 16,133 |
Sales | (3,897) | (1,013) | (24,784) | (1,178) |
Transfers in | 0 | 0 | 0 | 0 |
Transfers out | (54) | 0 | (42,671) | (130) |
Realized gains/(losses) | 1,091 | 1,013 | 17,986 | (4,490) |
Unrealized gains/(losses) | 21,230 | 9,807 | 41,835 | 3,608 |
Ending balance | 157,405 | 146,272 | 157,405 | 146,272 |
Unrealized gains/ (losses) for assets held at period end | $ 20,202 | $ 9,807 | $ 35,397 | $ (1,893) |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of Consolidated Variable Interest Entities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Investments | $ 235,213 | $ 183,179 |
Other assets | 100,212 | 75,043 |
Assets | 2,194,153 | 1,997,140 |
Other liabilities and accrued expenses | 62,286 | 84,547 |
Total liabilities | 1,080,057 | $ 1,071,058 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investments | 201,789 | |
Other assets | 2,809 | |
Assets | 204,598 | |
Other liabilities and accrued expenses | 9,473 | |
Total liabilities | $ 9,473 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Assets related to VIEs | $ 2,194,153,000 | $ 1,997,140,000 |
Liabilities related to VIEs | 1,080,057,000 | 1,071,058,000 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Available bank line financing | 25,000,000 | |
Assets related to VIEs | 204,598,000 | |
Liabilities related to VIEs | 9,473,000 | |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Assets related to VIEs | 1,800,000,000 | 1,800,000,000 |
Variable interest entities, exposure to loss | 9,100,000 | |
Liabilities related to VIEs | $ 0 | $ 0 |
Receivables from and Payables_3
Receivables from and Payables to Brokers, Dealers and Clearing Organizations - Schedule of Receivables from and Payables to Brokers, Dealers and Clearing Organizations (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Receivables from Brokers-Dealers and Clearing Organizations [Abstract] | ||
Receivable from clearing organizations | $ 192,460 | $ 184,662 |
Receivable from brokers and dealers | 29,862 | 33,514 |
Other | 3,412 | 3,315 |
Total receivables from brokers, dealers and clearing organizations | 225,734 | 221,491 |
Broker-Dealer, Payable to Other Broker-Dealer and Clearing Organization [Abstract] | ||
Payable to brokers and dealers | 8,590 | 18,591 |
Total payables to brokers, dealers and clearing organizations | $ 8,590 | $ 18,591 |
Receivables from and Payables_4
Receivables from and Payables to Brokers, Dealers and Clearing Organizations - Additional Information (Details) | Sep. 30, 2021USD ($) |
Pershing clearing arrangement | |
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | |
Excess net capital required | $ 120,000,000 |
Investments - Schedule of Inves
Investments - Schedule of Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of Equity Method Investments [Line Items] | ||
Investments at fair value | $ 223,453 | $ 174,849 |
Investments at cost | 611 | 611 |
Investments accounted for under the equity method | 11,149 | 7,719 |
Total investments | 235,213 | 183,179 |
Investments attributable to noncontrolling interests | (136,278) | (94,900) |
Investments excluding investments attributable to noncontrolling interests | 98,935 | $ 88,279 |
Level III | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments at cost | $ 600 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Fee receivables | $ 48,598 | $ 38,840 |
Accrued interest receivables | 1,483 | 1,474 |
Forgivable loans, net | 11,313 | 5,526 |
Prepaid expenses | 17,416 | 14,585 |
Income tax receivables | 5,019 | 0 |
Other | 16,383 | 14,618 |
Total other assets | $ 100,212 | $ 75,043 |
Short-Term Financing - Addition
Short-Term Financing - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Revolving credit facility | |
Short-term Debt [Line Items] | |
Line of credit, maximum borrowing capacity | $ 65,000,000 |
Minimum net capital required | 120,000,000 |
Short-term financing | 0 |
Credit facility | |
Short-term Debt [Line Items] | |
Line of credit, maximum borrowing capacity | 100,000,000 |
Minimum net capital required | 120,000,000 |
Short-term financing | $ 0 |
Debt term | 1 year |
Long-Term Financing (Details)
Long-Term Financing (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Apr. 03, 2020 |
Debt Instrument [Line Items] | |||
Long-term financing | $ 175,000,000 | $ 195,000,000 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term financing | 175,000,000 | ||
Senior Notes | Class A Fixed Rate Senior Notes Due October 2021 | |||
Debt Instrument [Line Items] | |||
Long-term financing | $ 50,000,000 | ||
Annual fixed rate | 4.74% | ||
Senior Notes | Class B Fixed Rate Senior Notes Due October 2023 | |||
Debt Instrument [Line Items] | |||
Long-term financing | $ 125,000,000 | ||
Annual fixed rate | 5.20% | ||
Unsecured promissory notes | The Valence Group | |||
Debt Instrument [Line Items] | |||
Long-term financing | $ 20,000,000 |
Restructuring and Integration_3
Restructuring and Integration Costs - Schedule of Pre-tax Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 0 | $ 1,703 | $ 3,404 | $ 4,245 |
Integration costs | 314 | (111) | 478 | 2,973 |
Restructuring and integration costs | 314 | 1,592 | 3,882 | 7,218 |
Vacated leased office space | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0 | 1,820 | 3,404 | 1,908 |
Severance, benefits and outplacement | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0 | 6 | 0 | 2,927 |
Contract termination | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 0 | $ (123) | $ 0 | $ (590) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) | Oct. 29, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jan. 01, 2020 |
Equity, Class of Treasury Stock [Line Items] | ||||||
Aggregate purchase price of share repurchases | $ 68,368,000 | $ 21,721,000 | ||||
Shares of common stock purchased from restricted stock award related to recipients' employment tax obligations (in shares) | 145,683 | 102,556 | ||||
Repurchase of common stock for employee tax withholding | $ 16,100,000 | $ 8,600,000 | ||||
Reissuance of treasury shares as a result of employee vesting (in shares) | 896,595 | 282,718 | ||||
Issuance of treasury shares for deal consideration (in shares) | 34,205 | |||||
Cash dividends paid | $ 49,100,000 | |||||
Dividends declared per common share (in dollars per share) | $ 0.55 | $ 0.30 | $ 3.25 | $ 1.63 | ||
Other comprehensive income or loss attributed to noncontrolling interests | $ 0 | $ 0 | ||||
Quarterly dividend | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Cash dividends paid (amount per share) | $ 1.40 | |||||
Quarterly dividend | Subsequent Event | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Dividends declared per common share (in dollars per share) | $ 0.55 | |||||
Special cash dividend | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Cash dividends paid (amount per share) | $ 1.85 | |||||
Special cash dividend | Subsequent Event | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Dividends declared per common share (in dollars per share) | $ 3 | |||||
Share repurchase program, authorized 2020 | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Repurchase of common stock, authorized amount | $ 150,000,000 | |||||
Shares repurchased (in shares) | 417,903 | 188,319 | ||||
Average price of repurchases (in dollars per share) | $ 125.03 | $ 69.72 | ||||
Aggregate purchase price of share repurchases | $ 52,300,000 | $ 13,100,000 | ||||
Amount remaining under share repurchase authorization | $ 84,600,000 | $ 84,600,000 |
Compensation Plans - Summary of
Compensation Plans - Summary of Outstanding Equity Awards (Details) - shares | Sep. 30, 2021 | Dec. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Options (in shares) | 81,667 | 81,667 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock outstanding (in shares) | 3,815,438 | 4,312,557 |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock outstanding (in shares) | 158,393 | 146,048 |
Restricted stock related to compensation plans | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock outstanding (in shares) | 1,999,227 | |
Restricted stock related to acquisitions | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock outstanding (in shares) | 1,816,211 | |
Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Options (in shares) | 81,667 | |
Incentive Plan | Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock outstanding (in shares) | 158,393 | |
Incentive Plan | Restricted stock related to compensation plans | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock outstanding (in shares) | 625,269 | |
Incentive Plan | Restricted stock related to compensation plans | Restricted Stock | Annual grants | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock outstanding (in shares) | 533,024 | |
Incentive Plan | Restricted stock related to compensation plans | Restricted Stock | Sign-on grants | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock outstanding (in shares) | 92,245 | |
2019 Inducement Plan | Restricted stock related to compensation plans | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock outstanding (in shares) | 96,000 | |
2020 Inducement Plan | Restricted stock related to compensation plans | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock outstanding (in shares) | 1,277,958 |
Compensation Plans - Schedule o
Compensation Plans - Schedule of RSU Performance Condition Probability (Details) - Restricted stock units - Average adjusted return on equity targets - Probability of achieving performance condition | 9 Months Ended |
Sep. 30, 2021 | |
2021 | |
Schedule of Share-based Payment Awards, Equity Instruments Other Than Options, Performance Condition [Line Items] | |
Award vesting percentage | 75.00% |
2020 | |
Schedule of Share-based Payment Awards, Equity Instruments Other Than Options, Performance Condition [Line Items] | |
Award vesting percentage | 75.00% |
2019 | |
Schedule of Share-based Payment Awards, Equity Instruments Other Than Options, Performance Condition [Line Items] | |
Award vesting percentage | 75.00% |
Compensation Plans - Schedule_2
Compensation Plans - Schedule of RSU Valuation Assumptions (Details) - Restricted stock units | 9 Months Ended |
Sep. 30, 2021 | |
2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 0.23% |
Expected Stock Price Volatility | 43.20% |
2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 1.40% |
Expected Stock Price Volatility | 27.30% |
2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 2.50% |
Expected Stock Price Volatility | 31.90% |
2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 2.40% |
Expected Stock Price Volatility | 34.80% |
2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free Interest Rate | 1.62% |
Expected Stock Price Volatility | 35.90% |
Compensation Plans - Schedule_3
Compensation Plans - Schedule of Stock Options Valuation Assumptions (Details) - Stock options | 9 Months Ended |
Sep. 30, 2021$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 2.82% |
Dividend yield | 3.22% |
Expected stock price volatility | 37.20% |
Expected life of options (in years) | 7 years |
Fair value of options granted (per share) | $ 24.49 |
Compensation Plans - Schedule_4
Compensation Plans - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | ||||
Stock-based compensation expense | $ 40.5 | $ 29.9 | $ 118.1 | $ 79.5 |
Forfeitures | 0.2 | 0.9 | 1.5 | 2.1 |
Tax benefit related to stock-based compensation expense | $ 5.3 | $ 3.9 | $ 16 | $ 10.3 |
Compensation Plans - Changes in
Compensation Plans - Changes in Unvested Restricted Stock (Details) - Restricted Stock | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Unvested Restricted Stock or Stock Units | |
Beginning Balance (in shares) | shares | 4,312,557 |
Granted (in shares) | shares | 351,244 |
Vested (in shares) | shares | (828,926) |
Canceled (in shares) | shares | (19,437) |
Ending Balance (in shares) | shares | 3,815,438 |
Weighted Average Grant Date Fair Value (in dollars per share) | |
Beginning Balance (in dollars per share) | $ / shares | $ 74.99 |
Granted (in dollars per share) | $ / shares | 107.65 |
Vested (in dollars per share) | $ / shares | 80.87 |
Canceled (in dollars per share) | $ / shares | 89.83 |
Ending Balance (in dollars per share) | $ / shares | $ 76.64 |
Compensation Plans - Changes _2
Compensation Plans - Changes in Unvested Restricted Stock Units (Details) - Restricted stock units | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Unvested Restricted Stock or Stock Units | |
Beginning Balance (in shares) | shares | 146,048 |
Granted (in shares) | shares | 62,569 |
Vested (in shares) | shares | (50,224) |
Canceled (in shares) | shares | 0 |
Ending Balance (in shares) | shares | 158,393 |
Weighted Average Grant Date Fair Value (in dollars per share) | |
Beginning Balance (in dollars per share) | $ / shares | $ 85.60 |
Granted (in dollars per share) | $ / shares | 103.69 |
Vested (in dollars per share) | $ / shares | 92.93 |
Canceled (in dollars per share) | $ / shares | 0 |
Ending Balance (in dollars per share) | $ / shares | $ 90.43 |
Compensation Plans - Changes _3
Compensation Plans - Changes in Outstanding Stock Options (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Options Outstanding | ||
Beginning Balance (in shares) | 81,667 | |
Granted (in shares) | 0 | |
Exercised (in shares) | 0 | |
Cancelled (in shares) | 0 | |
Expired (in shares) | 0 | |
Ending Balance (in shares) | 81,667 | 81,667 |
Weighted Average Exercise Price (in dollars per share) | ||
Beginning Balance (in dollars per share) | $ 99 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 0 | |
Cancelled (in dollars per share) | 0 | |
Expired (in dollars per share) | 0 | |
Ending Balance (in dollars per share) | $ 99 | $ 99 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures | ||
Number of Exercisable Options (in shares) | 27,222 | |
Weighted Average Exercise Price of Options Exercisable | $ 99 | |
Weighted Average Remaining Contractual Term for Options Exercisable | 6 years 4 months 24 days | |
Aggregate Intrinsic Value of Options Exercisable | $ 1,074,180 | |
Weighted Average Remaining Contractual Term of Stock Options Outstanding (in Years) | 6 years 4 months 24 days | 7 years 1 month 6 days |
Aggregate Intrinsic Value of Stock Options Outstanding | $ 3,222,580 | $ 155,167 |
Compensation Plans - Additional
Compensation Plans - Additional Information (Details) $ in Millions | Dec. 31, 2020USD ($)shares | Apr. 03, 2020USD ($)shares | Jan. 03, 2020USD ($)shares | Aug. 02, 2019USD ($)shares | Sep. 30, 2021USD ($)planshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of stock-based compensation plans | plan | 3 | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted shares granted in conjunction with the acquisition (in shares) | 351,244 | ||||
Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance period for restricted stock units | 36 months | ||||
Number of years risk free interest rate | 3 years | ||||
Restricted shares granted in conjunction with the acquisition (in shares) | 62,569 | ||||
Restricted stock units | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 150.00% | ||||
Restricted stock and restricted stock units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost related to equity awards | $ | $ 152.8 | ||||
Weighted average period over which equity award expense expected to be recognized | 2 years 6 months | ||||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grant requisite service period | 5 years | ||||
Share based compensation option exercise price | 10.00% | ||||
Unrecognized compensation cost related to equity awards | $ | $ 0.5 | ||||
Weighted average period over which equity award expense expected to be recognized | 1 year 4 months 24 days | ||||
Stock options | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Term of stock options | 10 years | ||||
Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity award grants authorized (in shares) | 9,400,000 | ||||
Shares available for future issuance (in shares) | 1,400,000 | ||||
Average adjusted return on equity targets | Restricted stock units | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 75.00% | ||||
Total shareholder return relative to members of a predetermined peer group | Restricted stock units | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 75.00% | ||||
Weeden & Co. | 2019 Inducement Plan | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Value of restricted stock granted | $ | $ 7.3 | ||||
Restricted shares granted in conjunction with the acquisition (in shares) | 97,752 | ||||
Sandler O'Neill | Restricted Stock | 18 Month Vesting Period | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period in years | 18 months | ||||
Sandler O'Neill | Restricted Stock | Three Year Vesting Period | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period in years | 3 years | ||||
Sandler O'Neill | Restricted Stock | Five Year Vesting Period | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period in years | 5 years | ||||
Sandler O'Neill | Restricted Stock | Weighted Average | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period in years | 3 years 8 months 12 days | ||||
Sandler O'Neill | 2020 Inducement Plan | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Value of restricted stock granted | $ | $ 96.9 | ||||
Restricted shares granted in conjunction with the acquisition (in shares) | 1,217,423 | ||||
Sandler O'Neill | 2020 Inducement Plan | Restricted Stock | 18 Month Vesting Period | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period in years | 18 months | ||||
Sandler O'Neill | 2020 Inducement Plan | Restricted Stock | Three Year Vesting Period | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period in years | 3 years | ||||
Sandler O'Neill | 2020 Inducement Plan | Restricted Stock | Five Year Vesting Period | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period in years | 5 years | ||||
Sandler O'Neill | 2020 Inducement Plan | Restricted Stock | Weighted Average | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period in years | 3 years 8 months 12 days | ||||
The Valence Group | Restricted Stock | Five Year Vesting Period | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period in years | 5 years | ||||
The Valence Group | 2020 Inducement Plan | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Value of restricted stock granted | $ | $ 5.5 | ||||
Restricted shares granted in conjunction with the acquisition (in shares) | 114,000 | ||||
TRS Advisors, LLC | Restricted Stock | Three Year Vesting Period | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period in years | 3 years | ||||
TRS Advisors, LLC | 2020 Inducement Plan | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period in years | 3 years | ||||
Value of restricted stock granted | $ | $ 2.9 | ||||
Restricted shares granted in conjunction with the acquisition (in shares) | 29,194 | ||||
Annual grants | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period in years | 3 years | ||||
Annual grant expense period | 1 year | ||||
Sign-on grants | Restricted Stock | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grant requisite service period | 3 years | ||||
Sign-on grants | Restricted Stock | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grant requisite service period | 5 years |
Compensation Plans - Deferred C
Compensation Plans - Deferred Compensation Plans (Details) - USD ($) $ in Millions | Aug. 02, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Weeden & Co. | Net revenue target | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Additional cash consideration, maximum amount | $ 31.5 | |||||
Amount accrued related to earnout | $ 31.5 | $ 31.5 | ||||
Non-interest expense recorded related to earnout | 2.2 | $ 2.2 | $ 6.5 | $ 22 | ||
Mutual Fund Restricted Shares | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Award Vesting Period | 3 years | |||||
Nonqualified Deferred Compensation Plan | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Plan Assets | 18.8 | $ 18.8 | $ 16.3 | |||
Plan Liabilities | $ 18.8 | $ 18.8 | $ 16.3 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income/(loss) applicable to Piper Sandler Companies | $ 45,721 | $ 11,617 | $ 165,001 | $ (1,656) |
Shares for basic and diluted calculations: | ||||
Average shares used in basic computation (in shares) | 14,213 | 13,778 | 14,314 | 13,789 |
Average shares used in diluted computation (in shares) | 17,047 | 14,853 | 16,821 | 14,580 |
Earnings/(loss) per common share: | ||||
Basic | $ 3.22 | $ 0.84 | $ 11.53 | $ (0.12) |
Diluted | $ 2.68 | $ 0.78 | $ 9.81 | $ (0.12) |
Stock options | ||||
Shares for basic and diluted calculations: | ||||
Dilutive impact of securities (in shares) | 17 | 0 | 9 | 0 |
Restricted stock units | ||||
Shares for basic and diluted calculations: | ||||
Dilutive impact of securities (in shares) | 204 | 153 | 171 | 119 |
Non-participating restricted shares | ||||
Shares for basic and diluted calculations: | ||||
Dilutive impact of securities (in shares) | 2,613 | 923 | 2,327 | 672 |
Stock options and restricted shares | ||||
Earnings/(loss) per common share: | ||||
Shares excluded from diluted EPS (in shares) | 800 | 2,200 |
Revenues and Business Informa_3
Revenues and Business Information - Revenues and Business Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Investment banking | $ 335,603 | $ 203,235 | $ 1,018,824 | $ 562,060 |
Institutional brokerage | 90,099 | 86,764 | 295,417 | 265,246 |
Interest income | 1,485 | 2,095 | 5,215 | 11,225 |
Investment income | 21,046 | 15,080 | 71,508 | 4,987 |
Total revenues | 448,233 | 307,174 | 1,390,964 | 843,518 |
Interest expense | 2,668 | 3,455 | 8,144 | 11,193 |
Net revenues | 445,565 | 303,719 | 1,382,820 | 832,325 |
Non-interest expenses | 369,855 | 279,070 | 1,110,183 | 834,308 |
Pre-tax income/(loss) | $ 75,710 | $ 24,649 | $ 272,637 | $ (1,983) |
Pre-tax margin | 17.00% | 8.10% | 19.70% | (0.20%) |
Advisory services | ||||
Segment Reporting Information [Line Items] | ||||
Investment banking | $ 214,165 | $ 77,250 | $ 615,682 | $ 274,045 |
Corporate financing | ||||
Segment Reporting Information [Line Items] | ||||
Investment banking | 79,065 | 99,528 | 297,602 | 208,152 |
Municipal financing | ||||
Segment Reporting Information [Line Items] | ||||
Investment banking | 42,373 | 26,457 | 105,540 | 79,863 |
Equity brokerage | ||||
Segment Reporting Information [Line Items] | ||||
Institutional brokerage | 34,062 | 33,439 | 112,169 | 121,936 |
Fixed income services | ||||
Segment Reporting Information [Line Items] | ||||
Institutional brokerage | $ 56,037 | $ 53,325 | $ 183,248 | $ 143,310 |
Net Capital Requirements and _2
Net Capital Requirements and Other Regulatory Matters - Additional Information (Details) | Sep. 30, 2021USD ($) |
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | |
Minimum net capital requirement | $ 1,000,000 |
Net capital | 279,400,000 |
Excess net capital | 278,400,000 |
Pershing clearing arrangement | |
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | |
Excess net capital required | 120,000,000 |
Senior Notes | |
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | |
Minimum net capital required | 120,000,000 |
Committed credit facility | |
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | |
Minimum net capital required | 120,000,000 |
Revolving credit facility | |
Schedule Of Compliance With Regulatory Capital Requirements For Broker Dealer [Line Items] | |
Minimum net capital required | $ 120,000,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Note [Line Items] | ||||
Income tax expense/(benefit) | $ 23,512 | $ 5,674 | $ 67,852 | $ (1,400) |
Tax benefit for stock-based compensation awards vesting during the period | 2,300 | $ 200 | ||
Effective Income Tax Rate at Federal Statutory Income Tax Rate Prior to Tax Cuts and Jobs Act, Percent | 35.00% | |||
Income tax benefits, CARES Act | $ 2,400 | |||
Domestic and Foreign Tax Authority | ||||
Income Tax Note [Line Items] | ||||
Income tax expense/(benefit) | $ 23,500 | $ 5,700 | $ 67,900 | $ (1,400) |