Piper Sandler Companies (PIPR) 10 Feb 222021 Q4 Earnings call transcript

Good morning and welcome to the Piper Sandler Company's Conference Call to discuss the financial results for the Fourth Quarter and the Full Year of 2021.

During the question-and-answer session security industry professionals may ask questions of management. The company has asked that I remind you that the statements on this call that are not historical or current facts, including statements about beliefs and expectations are forward-looking statements that involve inherent risks and uncertainties. Factors that would cause actual results to differ materially from those anticipated are identified in the company's earnings release and reports on file with the SEC, which are available on the company's website at www.pipersandler.com. And on the SEC website at www.sec.gov. include certain also financial will call statements non-GAAP regarding measures. This accordance in measures of and in should non-GAAP addition financial GAAP. be prepared measure The for considered to substitute not performance with a these the company's most issued reconciliation to Please refer non-GAAP GAAP earnings measures measure. to financial comparable today release for of direct the and available website. SEC is release Relations earnings the the Investor page at of The on the company's website

Mr. the Chad And reminder, Mr. now being I call this over to like a may to As you recorded. turn Abraham. Abraham, begin call would call. is your

everyone. Thank you. CFO. am Good Schoneman, Deb our and morning, our I Carter, here with Tim President

revenues and We will We entered earnings year the delivered business up Piper reopen. including XXXX firm's partners dedication. of during the with go continued open performance the Sandler the like Clearly, our their as each the grew we was strong to performance through over of across in XX% my thank to and our a recently I'd began record and businesses. hard for our for another had global and then for growth in of We expectations exceptional and work XXXX acquired economy questions. strong lines, and remarks XXXX. call quarter momentum prepared exceeded business employee year our record some

records. a and XXXX. the XX% EPS During of quarterly a the from XX.X% generated I'd a fourth all full for adjusted was than EPS our higher operating of of XX.X% revenues, basis, On margin X adjusted quarterly quarter, $XXX previous Operating billion again, review records. highlights net generated $X.XX the was and few to like adjusted firm revenues, the adjusted record. margin firm million also the quarter of year $XX.XX, net

and firm despite successfully to clients. last We becoming strengthened lower activity, by our year. strong the on organic of investment of and of we driven corporate exceeding $X over we share market gains. we the We finance, fourth added last billion long-term compared from of We results share across highest net execution set Inclusion, record a advance up raising a record and headcount of over our X generated finishing an the revenues, brokerage year public Managing We the in and significantly financings, diverse quarter growing priority on basis nearly billion a further Director We number the record year banking year. X.X revenues record grew diversity last generated finished last, and investment for the our XXX We ninth our and the headcount advisory firm. history. and revenues target volumes underwrote volatility First, talent institutional consecutive X% full of Director economic strategic market market quarter, strong inclusive for of corporate X% XXXX. in banking our levels year with hired billion, in Diversity generated basis and by MDs grew And Board to in more XXX a billion revenues year. with

over platform. in of power I on sustainable the the our transformation the increased years, earnings business As significantly have our two reflect we last

productivity. size diversified. investment XX% We is significantly our and per grown employee, years, total the doubled and client revenues. that businesses, and platform higher And more product million than considerably firm flow brokerage headcount margins, operating the our we've XX%, revenue exceeded from more scale. significantly two its in We've increase enhanced X headcount by XX% of cash broader doubled generated We our last an the firm base capabilities. by and profitability, in with During a a our than grown MD creating larger banking, more

a number Macro, highly initiatives spaces research further an that on last the to best-in-class M&A specialist equity companies. food XXXX to beyond. investment over on energy added focused growth and beverage European including performance during drive record firm strengthened our and Stanford Boutique the of trading. offers years, research and expansion. the business focused derivatives acquisition Cornerstone Beyond advisory with We strategic of within healthcare independent execute continue renewable macro two remain We on we Partners, filling complementary announced technology, services, a white banking, European We and

expanded continue product And share continue our our finance institutional public identify by synergies. of advantage brokerage growth market in drive we depth to sectors. We to strengthen businesses taking to specialty our

for Our success, talent. choice remain destination we culture and a of resonate and marketplace tier the top in momentum

X.X revenues registering corporate XXXX, and billion record services, total with XXXX, sequentially broad-based financial XXXX XX% Sector years. year. all We and up for investment XX% Turning the from industrials last by our driven for million performance to services, and across were of banking chemicals of consumer, from generated fourth business. quarter of was fourth up the XX% performance banking our XXX technology, tremendous platform. of corporate investment diversified Revenues healthcare, quarter

and corporate XXXX. record contributed and Specific our underwriting M&A banking XXXX, debt previous the from equity investment of XX% generated quarter During second engagements revenues. restructuring quarter, fourth up XX% to services, revenues advisory produced the million and of XX% generated advisory XX% quarterly revenues, XXX during we in activity financings of of total

revenues driven for For history, we our advisory of absolute time strong the performance. billion by in first year, over the and generated X relative

completed XX% last For more than context, the compared increased year. M&A global market in to volumes

larger of continues XX% XXX% count was taking generating advisory taking advising to driver be and a increasing to advisory focus core up our Our on longer advisory key deal on average the our than revenues a strides fees rather transactions with with growth. larger more, trend

announced aggregate value. deals closed transaction over billion value, over XX with X or in During including deals XXXX, XXX XXX we in billion

be with for driver leading Our continues advisory work equity a market and private to us. firms growth

XXXX revenues and portfolio of roughly during sponsor advisory revenues were XXXX. to companies compared on XXXX, generated thirds clients our overall or XXX% were our our of counterparties clients During revenues. up advisory PE XX% driven two and

XXX our broader a were we XXX over the universe engaged increased sponsors. business of firms year times financial of to by scale PE highlighting our platform PE relevance the and the During of

be and a advisory the We contributing to With expect to businesses the public to activity. our activity largest velocity. middle amounts continue advisory secular the continue activity M&A record in capital. decrease growth firms witness a well PE positioned and of capital portfolio company of PE street, businesses to benefit valuations market deal in market. more the deal driver periods in from hold M&A deploy in are We high PE growth one of exit deal rival of will Private engage levels secular equity multiples company to on

second we in decline of advisory the we first activity meaningfully strong remain M&A relative expect rate do forward, to XXXX the close Looking high anticipate on given typical to fourth the during XXXX, of XXXX, seasonality. quarter our and revenues half half pipeline to

a growth, confidence deal to to availability level support high economic CEO expect capital activity. continue and we However, of

result, to supportive, revenues first As market advisory similar the we half will half at of remain a if first XXXX. levels conditions be believe our XXXX

as financing, quarter, of moderated corporate to Turning generated solid issuance fourth revenues. volumes we during but million XX the remained

completed equity year billion in Against average. was contributions equity the year, last relatively U.S. XXXX, time surpassed this first technology record services, we financings volumes the million XX than raising Investor healthcare, with and capital, from for demand combined double more XX% record full results. XXXXs stable we XXX healthy with XXX up XXXX. setting the consumer and backdrop, notable issuance and $XX our valuations, of The equity issuance favorable of billion record revenues, markets fee during XX For financial had rising from teams. drove pool

grown healthcare capital support team believe market clients. our Innovation, in levels that $X completed We have will number book three and market for corporate over We historical sub run healthcare doubled a second strength of investor ons of ranked financings. the for top us market investment finishing with structural For team The XX-year leading IPOs should consistently of growth for significant than billion healthcare had companies record money. year decade, billion has pool companies is and on raising healthcare led of in companies XX in follow XX of average. amounts less last financing demand our and were the benefit billion of raise trend. of cap X year, last there the bank our secular nearly X.X healthcare the XX The The XXXX activity size healthcare at transactions, based on to book long-term beef to billion the over change averages. a consecutive relative this higher team the capital standout requirements which market run, cap.

XX billion equity Another the run, we technology capital key growth which clients. priced for XX in raising book was XXXX our our of consumer where sectors, and were XX in financings, of driver at in performance

the XX billion the Our during also completed capital raising The year. very companies. team and financial debt capital active services XX was offerings, other group preferred and in stock markets financial banks services for of

Our of clients year. than more last was portfolio diverse

established several said, to substantially issuance That In years. of XXXX assist non-bank during decline we distribution the our capital from clients depositories, levels we in last the the record and addition our differentiated to two to leveraged leadership market market XXXX. presence raise expect to

in our Internet to by energy a automotive sponsor team adding our at We officer We platform. significantly to pharma and added healthcare added advisors expertise continued Turning services and platform team MDs and bolstered We finished Director and services. cover European of to XX technology franchise added We grow renewables our retail headcount, Managing adding XXX TRS talent industrial as Broadened the power our investment and Directors added to Managing strengthen consumer clean capabilities in the our European to energy industrials software year the to diversified our and with in coverage capabilities and banking addition we healthcare business and space direct-to-consumer practice. senior across up energy we We in built to coverage firms. our restructuring PE in the aftermarket. services. technology.

returns. Over the have and strategic and past vision decade, growth strong on shareholder we our delivered executed

was platform flow. industry Managing industrials scale, of care, expanded the we from consumer, banking sectors, margin and XX have XXX We four diversified have number and XXXX, health than a on built Directors with Since services verticals, four grown significant then, In investment and and our revenues. seven cash more diverse technology. industry business quadrupled to to dependent from

the of business economy. banking most investment covers now Our

more and relevant, flow offer resulted new added long-term I'd We our our a my enhanced sharing investment more scale and has growth. like breadth a base. provide client are more more larger, platform by opportunity The more capabilities to comments also in of diversed for stability. close target. meaningful business provide to firm capabilities This to product deal banking

to over Looking we With our banking call $X that, grow annual corporate and Deb ahead to businesses. will public discuss see to a to path the years, brokerage finance to next billion. turn I investment five revenues the

Thanks, Chad.

the with revenues prior driving begin update XX on saw quarter an and elevated the equity up from sequentially, fourth equity business. our of me X% million brokerage for Let quarter in brokerage the Equity volumes markets XX% and year. volatility

strong generated the For extreme benefited the in full down million volumes year, prior year. XXX volatility from brokerage year, revenues and early which equity the X% of pandemic-related from

In us addition for differentiators our our our to equity financing the key equity research of quality and capabilities, record trading in specialist supporting activity. salesforce are

And stocks For number small over the under based mid XXXX both have coverage. cap total, number are context, we coverage. in cap we on ranked of one companies under and

equity XXX were run, totaling equity which of XXX distribute the helped value. billion underwriting XX Our book deals, in salesforce

of research to excited research February team products we're and and our company's closed XXXX, specific have believe the macro, to to complementary forward on offer that somatic Macro high-quality our cross-selling We acquisition a Cornerstone on will platform. research quantitative look be X. we opportunities. range The wide As

high-quality XXX scale. are there side equity have capabilities opportunities of demonstrating and consolidate believe million as After full believe an towards integrate platform that full to to of for revenues. our and with share we continues the integration the we close in Additionally, the brokerage Cornerstone, cornerstone we platform, annual generate market will gains continue we buy firms can

quarter revenues financing quarter municipal with finance business to third public XX% the strong, fourth the of Turning the of a quarter extremely from XX strong million last XXXX our finished up XX% year. for from of financing, and year fourth

among specialty specialty other securities yielding housing, for high-yield execution, new robust built schools setting As took issuance construct which we in remained we building our drove quarter. municipal strong during senior client the transportation record highlighted quarter, last healthy low and Demands facilities, living assisted base, our we have as advantage clients sector and Municipal construct clients was higher been of governmental space improve through performance to charter things. rates. sector the

of firm We for negotiated market record interest last and economic of up billion XXX municipal a underwrote XX% XXXX, XXX nearly rates investor issuance XXXX market during year. our market revenues XX XX% year our of was full raising transactions, par record we generated reached for bonds, up billion was XXXX revenues, a For driven XXX Municipal the financing significantly over by municipal strong municipal for total million share. from year-over-year, of clients. With and we the that the low our essentially to flat, XXX grown relative and appetite have value billion.

We well geographic street, on as reach a as talent number market. of the sector premier par both in destination see one the we coverage. municipal ranking opportunity finance based for governmental our of value public have franchises to specialty our built two continued deals strength our and negotiated the business extend the in resonates and and franchise are largest externally based number number eight The on on of

With business. we historically our path building on specialty the the several our the next XXX franchise strong believe sectors, a to public with years. We finance over expanding we've combined made investments are governmental million

look are economic in continues experienced overall we turn money be declining. the Absent trend market XXXX. increasing we opportunities dramatic as levels ahead years new conditions, with refunding in continuation to to expect and issuance we expect consistent As two of last the a XXXX, a

Lastly, to our income business. turning fixed

during of and year. down the revenues, of breadth of sixth compared some fourth the as basis more bit softness performance For quarter over in outlook our governmental of a the quarter rate interest digested the we in quarter, XX been sequential they fixed fourth XXXX, highlighting solid consecutive on clients Client as changing XX policies. X% activity scale more the platform. quarter income cautious muted a the fourth uncertain generated quarter revenues the the fiscal Despite million was market, with and were has fourth million representing our last with to and XX%

XXXX, of base as a uptick In activity For liquidity surge saw activity followed products. million year. clients up for they as in in the strongest work client positioning firm full during during put client first a yield of and Activity an record year our interest rising flatten, the backed by quarter as from we we rates, client securities and last gradually resulting year then began XXX decreasing revenues, XX% from in produced XXXX, institution quarter the excess in higher to late was the fourth within loan rates. financial volumes mortgage and

sheets enabled Our deep their rate to us investing clients and expertise advise balance in repositioning a environment. banks has in changing on

new trading, distribution deals finance public XXXX our markets, income. within for Our over was differentiator salesforce XXXX raising clients. XX and over us active underwriting And is during debt fixed key for issue both and distributing very billion capital in a

an an sales as of XXXX, increase rate we everchanging performance navigating as specialization. two a expect in We bit continue the the the From reaction may [ph] platform, and increased clients will environment. volatility Inflation in to to and to generation changes think and perspective, rates. clients and to outlook invest reserve rising in client in I've rate targeted in client near vertical repeat interest last that made term, rate assist has federal react interest changing a XXXX strong hires which our interest the years we in several both revenue inject posturing we product more in increased depth In environment. uncertainty knowledge rates, [interest] trading in and volumes

use. provide review our to over the I results Now, on will and an update Tim financial capital call turn to

Thanks, Deb.

focused for from fourth adjusted the XX% XXXX, of fourth non-GAAP of revenues net increase As of comments of We be XX% third an my million year. and results. our financial from last quarter XXX quarter generated a on the reminder, will quarter the

revenues brokerage, financing brokerage was scale year. generating the the Chad have businesses. As business X strongest services demand activity both from year municipal driven banking, income, and XX% record in we totaled four over noted, an XXXX This investment Net for strong based platform our elevated sustained drove exceptional broad of record activity with as the was the and on increase and made as municipal record. revenues, financing, finish investments its performance transform combined and all basis. for a corporate from financing diversification advisory to on strongest second fixed have our by The services equity corporate record adding registering year billion quarters on with XXXX. well our prior to by solid during

Turning expenses margin. to operating and

our from from finish Our compensation for quarter to year, quarter the performance third ratio of for was the of XX.X% resulting strong down fourth XXXX, the this year. XX.X%

our compensation our robust in leverage business levels. at year, the XX% For the reflecting revenue was ratio these

continues balance philosophy and revenue to Our to considerations of be managing business compensation retention. investment levels mix, employee a performance,

increased professional higher deal well expect XXXX, in XXXX costs to expenses profitability. in fees to XXXX. of focused an ahead near deal by growth. X% with higher non-compensation on basis, demonstrating compared over was compensation for increase third a XX% increase we were up expenses our the a the revenues XX% expansion, XX% variable leverage basis, increase be on Looking full revenues ratio legal XX reimbursed costs fourth as travel our costs, to related and remain Non-compensation business associated to excluding million, This year The XXX million as the totaled business. to compares full of driven and On expenses excluding quarter year as investing for year-over-year, a significant quarter. we

and office disciplined environment of costs from Stanford. to and higher expenses expansion conditions. Cornerstone the expect additions non-compensation XXXX, and we increased the business adapting while to in continue managing and In We market stemming travel, be

per XX deal range expect our we excluding from to XX costs expenses to million factors, million these quarter. Given non-compensation

income generated quarter million margin and XXX fourth XXXX, operating of of we quarterly the of records. XX.X%, both an operating For

For of XXXX, an XXX over operating year. generated we million, XXX% prior income increase of the

meaningful XXXX. year the platform from increasing is The for a the profitability XX.X% increased margin XX.X%, in expanding of Our expansion of our platform. our margins our was scale and

the XX% averaged margin averaged context, and XXXX, For XX%. XXXX, period some additional XXXX XXXX during margin our and during and our

rate was year quarter and Our full adjusted the XX.X%. tax XXXX of for fourth

full our continue excluding we be impact of tax range expect XX% XX%, to targeted to any tax will our rate vestings. forward, within stock from Looking adjusted year

record million XXXX, XXX Turning fourth to quarter of diluted net for generated $X.XX. EPS the income earnings, we of of and

net to XXXX, EPS and and the than more income total Compared strong we diluted our driven was For EPS income demand XXX robust $XX.XX. diluted and million execution. year, doubled net market by

Let total with build drive growth. capital an model to me and our like can remain which finish help capital. update excess returning returns. capital drive future committed earnings, to on We With we our cash, to continue shareholders to business strong

equals of our capital and of Given earnings cash our dividend $X.XX including based position, full the to above a This level share our X% total the dividend XXXX XXXX represents increase year share on of dividend a XX% per a XXXX. approved strong dividend during related fiscal to for the $X.XX special per yield results, Board special XX% payout year and dividend our ratio. the slightly share our three-fold XXXX over price midpoint average

share. quarterly on addition, quarterly Both to approved will In March record X. close paid an business as of Board $X.XX to the the special of dividend the shareholders our be XX dividend of and March increase on per to

well we repurchase to as annual to In addition dilution continue related growth, accelerate shares capital deploy offset to to towards dividends, our any as grants. to acquisitions

shares, stock than an upon maturity. $XX approximately dividends. XX XXXX, million dilution or our which and million quarterly October stock maintain and common XXX XX. more repaid aggregate long-term our Class annual XX notes We we paid grants million maturing of A in of we from through We million XXX,XXX offset debt of special repurchased During of

for we're and of Lastly, and The to-date growing shareholder tremendous diversifying we strides business, our services the our repurchased shares the to XXXX our combined last results Sandler. slightly our by up the demand expansion advice the we two resulted of to have We've of Piper strategic businesses growth Overall plans years of metric. financial continue more common every open year historic XXXX. driven our first in of during excited for XX,XXX value. than with call drive made strong executing and great stock for quarter questions. during Thanks strategic can platform now marked

[Operator you. you. Thank Instructions] Thank

line of James Sachs. Our first Yaro question comes Goldman of from the

XXXX, on Thanks my about suggests congratulations first deals questions. quarter. lot a to hold. just those are on that And so I for seen taking pipeline. the we've in Everything wanted ask equity the of underwriting that, far

talk and just out? Or if of are you that it when canceled deals hold deals it to And those deals? volatility is, How being put entirely? they're on then to turn So how they're pushed former, being it market long being the canceled clients, indeed, pushed much out? the have more been that into is does take for

raising, the and few would start I and capital you is to go over deal to had a say, to back lasts, and little Good be year first more takes are to weeks and few sort there healthcare clients, out those then to mean, yes, for that years, it's a to most common Yes. after you good it a I relative side markets, see relative And IPOs. you happens six or follow-on before, equity, some over and you or transaction, mean, which not Thanks, quarter, Certainly test the results. would just and need slow of four is, ECM They relative But IPO got data what and logic of less backlogs say, slow. James. the five I periods. obviously, to a to get clients the then to the volatility it of we've stabilizes. that do has everybody market biotech. been capital market can want question. weeks you I and incredibly relevant the if five go. market, first see this clients the In get

money? Where raise the little going overall some did you a share take were of little a because related to bit of takes that back. So stock? market you that longer may what's come to of price the to longer that Some think it's

and just midst Okay. intense comp And that's we're there's obviously And cycle cost which and technology. a of well, is one I one, both other inflation obviously somewhat across long-term then, guess as in investment the occurring.

be roughly comp how when your Or guidance you whether is just this ratio adjusted impact XXXX for think environment. ‘XX I your competitive priorities on XX% one So more off? And for reflects know think longer expenses investment pressure And to is beyond XXXX? you continue likely curious about to of the hiring then, today. term, the the investment in

Yes, of I XX%, few combination the would the and commentary us, say, really around it's for things. a a

hire. wouldn't in But, grow. growth very in think the just we the on I and flow of support, sort say also, to the some continue all, to cash to some kind continue and of do think being return much had which things, I but ratio. First of of focused higher still we're we very some investment of with to I invest on sure shareholders. to people comp good drives lower levels, expenses, more areas, capability we a want tremendous those of And we're comp revenue inflationary mode, advantage income, leverage really to making got took obviously, just many And, to more one we've very there's revenues to we necessarily corporate grow. it's

Okay. sense. Thank questions. you for taking of That makes lot a my

Thank you.

Securities. of JMP Ryan comes of question Devin Next the line from

start for modeling phenomenal And if XXXX, in a terms pretty ended of bit But consistent out mean, digging I first push we just a a a little in how think appreciate the and a trends We just night a business. maybe little one outlook the [indiscernible] half maybe the activity of after there's XXXX, kind still more kind that already little of talk such M&A of I been last can to around as hear the a were of of completion. you outlook about just is business that accelerating? and market, I in from timing business with want the you for that's you year peer well. year bit on the just the did step tremendous the obviously, deal take back, tone bit

more term? is kind broadly, billion How to ability a intermediate there XXXX. of just get I'm versus in through revenues of that plus grow you're curious of dollar a that what back high So over and watermark much seeing or maybe an the kind

it Devin., I question the that business, to to drove place. relative good QX. obviously, Especially mean, the a still powder in of would certainly a didn't are to just transactions. XXXX I finance many sponsor say taking Thanks, advisory factors transactions, comes which lots I general that's in big say to the that ability close in would of longer such the business Yes. we fantastic when dry see of for lot

look majority at January, we expect to close. And QX, fact then lot is when look when in the for out, certainly In where approvals would what sponsor we not QX. of larger longer middle get of relative the that's to close, we're a of stuff had we pipeline a I of little just market and vast our started push I the sort our mean, seeing transactions, usually I of we what closed we say, at a the didn't few but to of list some take get going case.

So, start looked similar think year. very of has at industry of they where pipelines been the active when Obviously, would they sponsor I processes. market, half. in just it's relative that's a in PE the more business quite last weighted business time pipelines I sort are those this a say of our And lot always our to everybody sort us, team, by to back closes for we year to the trend, were that the back of half

relative are But calendars where pitch half going conditions. are we're the neck very the M&A out, our in. still is to good, years, there not going to come the relative stick market to So our several back fantastic pipelines last are to high,

benefit Okay, great through some then were I appreciate the business and think trying color. rates guess there. the I'm there, brokerage there that on did of And Deb Thanks, Chad. from just puts higher, income, as a fixed lower repositioning interest here that just takes lag as Very repositioning, securities business. to helpful. one period their is for and flush books. a -- I depositories rates move maybe but there's there's cash, with we're of the

more high as now, the that runs you're flushed was kind but I'm than it repositioned. brokerage to potentially may some transition they've in on income cash that handoffs the heading as And the then, volume, system. business, into very And depositories about other XXXX. the and right trying through other fixed is side, your diverse a with because expectation is So much of already aren't think of seeing it

think to a for particularly business thought term. pretty as what in about there I the of well, the trying just outlook puts positive given like the some near and So takes sounded

thanks, Devin. Yes,

I is to they couple transactions. lot maybe, rate to that was And you side of our more interest comments saying starts those I shift, rates of demand overall higher the other banks, they had start it's would volatility. as business. in a there and part for of good though it made invest. for to lending and will there's have that tend Specifically, around to by be start guess loan deposits more that overall very true The us obviously out when A happen more those things of lower

also a that derivatives advisory help do them volatility. really work and We trying to with manage banks through the lot of business

what's your is verticals other the very that, client on alluded part you second are the growing just which question and focused on the as other thing, other in side we to The well. of of

expand even volatility see. do that tend of that maybe so trading a the business you to but can of products, [ph] You financial be a that highlight ways institutions, looking of currently less to and we little with as the through volumes for with lot the business, [non-QCed] them day-to-day rightly might

So net-net business. fixed will higher help generally rates our income

seen, had We than year have as which be a outlook have declining but us the or prior seeing we the see spread just evenly as up the are would our noted, in around I the to comments, my start much pick year, year, likely to you quarter year revenues, XXXX. throughout we bit comments little started seen and gives to the this volumes had declining in fourth decent more for confidence in how we seen very overall some

Great. question things If well. out and round to could in one Tim a more give squeeze as I just

like redeployment generation, pay about some cash lot the special thinking dividend fantastic the even you and a a excess a Just ago? you to year, clearly all excess lot the a those After M&A special there's should a there. quantify relative and been bonuses. even year, the into don't of today cash actions, of of build about it there's to and think guess still year some also position, buyback. nice cash way after pay a but that after and we feels I I position great How

into moving about of just heading think your like the XXXX, to after even some you position you the some feel kind here. trying just So satisfy parts of and how cash of needs

Yes, Devin. Thanks.

we're dividends 'XX. I a year-over-year increase would is excess to after there You're less little position, and Obviously, right, and during some buybacks. capital You the say even active that cash

that terms we've the up corporate Stanford use deal now, things lined can for. done some In of and closed, we just Cornerstone deals cash but smaller got we've development,

continue corporate So, some payout having obviously, and be in we've position through the of over grow up can mean, dividend development continued to we that little to continue in a to I to that to puts business, move grow want up. But that, to cash good us excess we that active the midpoint, do a to to way. flex ratio the

you. Thank

of Michael line the of from comes question Next KBW. Brown

to operating wanted and the kind just maybe put So think commentary just margin of through together your of here. some

had think that to of again, like we and ratio non-comp lines. obviously, margin some together, if what at the XX.X. right Just the the think last operating way about a comp you and your business result But really a So strong beyond? get there? the a is about way right margin commentary for interesting some Is floor to year pull thoughts And here? kind still on you it XX% 'XX in

take XX% We had a I'll a that. sort margin talked maybe Mike, perspective about from of is hurdle this goal. Yes,

we've like moved feel certainly that. we've think, I past

I in bit term to could near XXs. the a in more now little mid the think, low that be

like, you of a it, at XX of more over given as look more to it's think long-term, kind think But plus idea we kind was that that and two of the from I you feel And unique a running getting last I benefited about the basis. XX.X, years think year. aspects the XX.X to different XX.X now higher in the mean, some certainly now, little on sustainable XXXX. I were

So that is term low that XXs. it's I in near the think to in more -- mid

for And $X wanted the to billion corporate banking. then Okay, target talk great. just investment Tim. about Thanks,

between go. to Chad, you appreciated where would helpful it years, guidepost Or about So, balance that and you growth put platform inorganic is And you you a there? there the over a fee growth? think I've can there, there is we the anything understand and the get the thought the longer just so how thinking term could adding organic growth side, bit your about to trajectory growth else But if simply little organic next always be I about more out five the increasing just size? overall should what's way hear be guys envies

obviously, Yes, timing. new was actually investment the on no, term offsite $X had years, for of productivity, got longer -- of number Directors. we involved of Managing have Utah these with of billion I've focused Managing I been talked just the target. you've run perfect in you've And Directors, about with same helping XXX a we XX our for stay to an I It's banking promotions Yes, combination in sort MD just targets investment things, got got you've a we banking, hiring, set growth. was

managing we've from headcount get to got to XXX. X the the keep clearly, billion, director growing to So

growth, organic We XX% pretty that development. have years last our look really and of XX%, -- close through you comes to if five that sort corporate back

target, do development. corporate plus believe will year So five that X through in of that that some we billion banking come for

And of look ways healthcare examples, about pushing have of healthcare, services some at market M&A maybe have we lots of it's you're in financial space, obvious opportunities a some And organic, think, good a just made areas themes, an hard to half both I in growth as And there's financial calls, two last about, we've services. great Once we've services, progress Corporate think Europe what had obviously it's in think, development, example. safe the big just we our a then we in as the we're I non-depositories those well. of that the how some you easier into sort then other and we themes really part specific and nice two businesses, through. of in potential sort several at about of sort we've think talked pretty we've year half as it biggest growth to then, green as to franchises, there. and And group. fantastic talked relative think grow, still, I some these been great there. technology franchises, we

we While nicely, have is tech last the to of business couple still our relative years, really undersized grown software the size the it market.

significant So opportunity. that's a

So tech about X brick opportunities, think opportunity. Europe, the strategy in in over there's larger it's There's next to our an years. few talked teams, I like by up you and of a we've a industry brick stacked billion five all so certainly

Thank you.

Mike of line Securities. of Northland the from comes Grondahl question Next

called Chad, in diversified a of understand financial, advisory on in quarter. industrials quarter from maybe Congrats care obviously health the question and about, just to the huge you guys. the quarter, contribution relative kind records trying out the consumer energy and

Yes.

every Obviously, the more transition think we clean prices and is business team, from to to renewable. starting had in for So, tech year, the industry energy and with I our frankly, frankly, recover except energy. oil records

energy we given the all So, are can we have optimistic the of business basis isn't to sponsor significant the our pretty to that almost the the think, in industry which were teams, frankly, Relative relative had QX, back business. big is really sponsors. XXXX. I a on XXX% a quarter, about in general, year of very in is had good half quarters, that, surprising diversified for and And year business tied industrials

had So in business frankly, a and first transactions to 'XX, some financial then good just year-over-year a services. Really in good close half the as far a still was the expected year, basis, well. we by here biggest advisory on of

and Europe out progress it. call five as that the billion to making And Got part what update of maybe then in on of lastly, estimate $X from might Europe? come And some any any rough there. just you're years, goal then,

fantastic couple impact, always relative made Yes. I of sort would hires of business, I just a is made a In we progress had mean, our to a in hire. significant from we we sponsors, year European been Valence a some that which Europe, in business. half had say, chemicals healthcare

mean, add market, of shoots middle to all Europe. So peers way on we're others relative basis in can green in definitely I underweighted still we that. our the the things seeing to a of we're

becomes don't there's million, I opportunity of so, $XXX growth lot or business, And but if $XXX there. million know that's for million a $XXX us

you. Thank

from Wolfe comes question line Research. Next Steven Chubak the of of

O'Brien with seemingly anti-trust crosshairs. filling Brendan To to pick rhetoric is This in in up banks start, the has for Steven. continued

in increased announced really could haven't the transact in at seen prolonged in impacted the sector you currently or backlog at whether time are deals more a bank willingness we your that maybe from that your has be any scrutiny that suggest would conversations to deals risk, all? to hearing anything are than action wondering take other regulators of However, on close. if late I was

fact certainly deals talked about, happening. QX, think Yes, We so I on can't the was less of lot activities noise which I little the closing, think there haven't in of because is, being it to and think even People do transactions still expect our and are are end continue. perfectly I you about they're characterized that, question, of high most longer. transactions, do to around larger still to a sort QX. in of point more And taking market. that, the it But that at closed a really of being keep I that rhetoric that talk the even going but transacting. frankly, scrutiny focused

significant That's finance business great you for million which run relative the see per XXX that. past this to color. that you year. public rate implies Thank growing growth mentioned to eventually, you pretty And year

you what as around growth. that was is was a provide is your levels see driving interest likely could moderate I once color bit more rise, hoping Given and issuance again, you rates record to that somewhat

I comments sort made Chad business am the banking of growth brick-by-brick. to this of echo corporate Yes, going our absolutely. investment in around

specialty If is look aspects, second businesses. being different one what business, call at from governmental two we it the you our our

for continue part opportunity this definite see there. is the holistically, still of areas to where to look Southeast geographies, market a in individual see grow talent brick-by-brick and and Pennsylvania, Eastern we States, lot leadership the of more in room in adding We different United the it's

So acquisitions, hires or be or small again, could hire. really individual team

relative on touching So the and just maybe brick-by-brick, governmental to environment. again, interest rate

seen have versus issuance the refinancing. We new money trend towards move

last was municipal XX and XX% of the refinancing about the issuance money's about down in refinancing XX%. new market, year, Over the

as out Then probably rate less to I interest something those our those. sensitive, tend build guess late like by see I in we're be, even in less here's special lot some little more a economy investor there. already which again, what's been that moved a recovers, XXXX, that we sensitive. is, we opportunity if business, a which of little our to you're shift hospitality, on as if businesses, larger take we current pick where more go district have nationally. and seeing in, up more for I focused tend just of my the rate senior out opportunity credit living and actually and there we're specialty and the businesses And interest think be a COVID outlook to come slightly somewhat the money, seeing point hurt of that businesses those new we So into see we which demand

So gaps. see we that's happy to business growing. fill in how any But other that

James from Sachs. Thank question Yaro A follow you. Goldman of up

end brokerage could number what asset Deb, means the and know I to headwind? be business, weaker being performance somewhat impact just the for a equity year-to-date of client that whether had of for curious managers among up one a of I'd

Yes.

watched over just the is years, our the true gaps we focused more building think brokerage the becoming market in I equity that and much a really closing relevant natural offering that and decline comment as which on and scale the you've why business been almost And wallet, it's to good a clients. overall, have product comment. in

XX%. the going in closed last believe we and that's now ability our our around heard you revenue commentary to grow Cornerstone So by Friday, about to with

to that which the on what those an building getting speak in So offset headwind to presence with $XXX of can some million on some our basis. market we feel is you run to in close these gaps, us filled rate overall. that going Having business clients annual be

which to market So means really share. that we continue gain to need

year, I that doing James, the add mean, But obviously really here some always you're of would start of I of I about the at hurt And talking people Yes. the was funds performance impacts pay. certain get think benefits still how that [ph] with accounts market see we can of [weed] from still more an the we of up getting of just and for some Cornerstone, opportunity and share make that there's lots

closing Mr. Thank over you. to There time. for the are no Abraham like turn at would this I Chad further call to And questions remarks.

operator. thanks, Okay,

work their to dedication close Thanks, clients. all employee thanking to forward our my partners everyone, a great hard strong Let for XXXX. very day. in momentum have and again, me maintaining by We look much and our

conference Ladies gentlemen, today's concludes and Thank you participating. call. this for

great now You may a Have day. disconnect.