PIPER SANDLER COMPANIES
For the period ended Mar 31, 2025. Filed May 8, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 8, 2025
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Leverage
The following table presents total assets, adjusted assets, total shareholders' equity and tangible common shareholders' equity with the resulting leverage ratios:
| March 31, | December 31, | |
|---|---|---|
| (Dollars in thousands) | 2025 | 2024 |
| Total assets | $1,820,501 | $2,255,936 |
| Deduct: Goodwill and intangible assets | (417,248) | (419,528) |
| Deduct: Right-of-use lease assets | (78,402) | (66,618) |
| Deduct: Assets attributable to noncontrolling interests | (172,287) | (197,600) |
| Adjusted assets | $1,152,564 | $1,572,190 |
| Total shareholders' equity | $1,378,110 | $1,415,773 |
| Deduct: Goodwill and intangible assets | (417,248) | (419,528) |
| Deduct: Noncontrolling interests | (164,637) | (187,943) |
| Tangible common shareholders' equity | $796,225 | $808,302 |
| Leverage ratio (1) | 1.3 | 1.6 |
| Adjusted leverage ratio (2) | 1.4 | 1.9 |
(1)Leverage ratio equals total assets divided by total shareholders' equity.
(2)Adjusted leverage ratio equals adjusted assets divided by tangible common shareholders' equity.
Adjusted assets and tangible common shareholders' equity are non-GAAP financial measures. Goodwill and intangible assets are subtracted from total assets and total shareholders' equity in determining adjusted assets and tangible common shareholders' equity, respectively, as we believe that goodwill and intangible assets do not constitute operating assets that can be deployed in a liquid manner. Right-of-use lease assets are also subtracted from total assets in determining adjusted assets as these are not operating assets that can be deployed in a liquid manner. Amounts attributable to noncontrolling interests are subtracted from total assets and total shareholders' equity in determining adjusted assets and tangible common shareholders' equity, respectively, as they represent assets and equity interests in consolidated entities that are not attributable, either directly or indirectly, to Piper Sandler Companies. We view the resulting measure of adjusted leverage, also a non-GAAP financial measure, as a more relevant measure of financial risk when comparing financial services companies. Our adjusted leverage ratio decreased from December 31, 2024, primarily due to a decline in cash and cash equivalents driven by the payment of annual incentive compensation in the first quarter of 2025.
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