Piper Sandler(PIPR) - 2024 Q4 - Annual Report

Financial Performance - Total revenues for 2024 reached $1,531,595, an increase of 12.7$1,358,113 in 2023[324] - Net income attributable to Piper Sandler Companies for 2024 was $181,114, representing a significant increase of 111.9$85,491 in 2023[324] - Earnings per diluted share rose to $10.24 in 2024, up 106.3$4.96 in 2023[324] - Comprehensive income attributable to Piper Sandler Companies for 2024 was $180,829, a 107.5$87,096 in 2023[326] - Net income for the year ended December 31, 2024, was $157,440,000, an increase of 59$98,973,000 in 2023[331] Assets and Liabilities - Total assets increased to $2,255.9 million as of December 31, 2024, compared to$2,140.9 million in 2023, reflecting a growth of approximately 5.4%[322] - Total shareholders' equity grew to $1,415.8 million, up from$1,299.5 million, marking an increase of 8.9%[322] - The company's total liabilities remained relatively stable at $840.2 million, compared to$841.5 million in the previous year[322] - The company reported a net deferred income tax asset of $161.6 million, down from$179.2 million, reflecting a decrease of 9.8%[322] - Noncontrolling interests in investments decreased to $187.6 million from$211.1 million, a decline of 11.1%[322] Cash Flow and Investments - Cash and cash equivalents rose to $482.8 million, up from$383.1 million, representing a significant increase of 26.1% year-over-year[322] - Net cash provided by operating activities increased to $313,255,000 in 2024 from$275,629,000 in 2023, reflecting a growth of 13.6%[331] - The company reported a net cash used in investing activities of $31,766,000 in 2024, compared to$10,051,000 in 2023, indicating increased investment activity[331] - The Company’s investments at fair value decreased to $267.3 million in 2024 from$285.9 million in 2023[466] Expenses - Compensation and benefits expenses increased to $1,004,173 in 2024, a rise of 12$897,034 in 2023[324] - Total non-interest expenses for 2024 were $1,307,502, an increase of 6.7$1,225,381 in 2023[324] - Interest expense decreased to $5,681 in 2024, down 44.4$10,146 in 2023[324] - Payment of cash dividends decreased to $73,726,000 in 2024 from$84,444,000 in 2023, a decline of 12.6%[331] Acquisitions - The Company completed the acquisition of Aviditi Capital Advisors, LLC on August 23, 2024, adding private capital advisory capabilities to its platform[389] - The economic value of the acquisition on the date was $70 million, which included cash consideration, equity consideration, contingent consideration, and various compensation obligations[390] - The acquisition of DBO Partners was completed for a purchase price of$66.3 million, including $64.6 million in cash and$1.7 million in contingent consideration[401] - Goodwill from the DBO Partners acquisition was recorded at $57.3 million, expected to be tax-deductible, with identifiable intangible assets valued at$10.4 million[403] - The acquisition of Cornerstone Macro had a purchase price of $34.1 million, with goodwill recorded at$9.6 million and identifiable intangible assets valued at $19.0 million[415] Financial Instruments - Financial instruments and other inventory positions owned totaled$425.7 million, slightly down from $434.6 million, indicating a decrease of 2.1$5,699,000 after netting effects, with a total liability of $76,982,000 for financial instruments sold but not yet purchased[441] - The total absolute notional contract amount of the Company's outstanding derivative instruments was$1.4 billion as of December 31, 2024, compared to $1.6 billion in 2023[462] Legal and Regulatory Matters - The Company is involved in various legal actions related to securities brokerage and investment banking activities, which could result in substantial damages[493]