PIPER SANDLER COMPANIES

For the three months ended March 31, 2025, our provision for income taxes was a benefit of $7.3 million, which included $25.4 million of tax benefits related to stock-based compensation awards vesting at values greater than the grant price and accrued forfeitable dividends paid on vested restricted stock related to acquisitions. Excluding the impact of these benefits and noncontrolling interests, our effective tax rate was 31.4 percent. The effective tax rate was impacted by non-deductible employee compensation expense, including limitations on the deduction of employee compensation expense enacted with the American Rescue Plan Act of 2021.

For the three months ended March 31, 2024, our provision for income taxes was $2.8 million, which included $10.6 million of tax benefits related to stock-based compensation awards vesting at values greater than the grant price and accrued forfeitable dividends paid on vested restricted stock related to acquisitions. Excluding the impact of these benefits and noncontrolling interests, our effective tax rate was 29.7 percent.