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Piper depository analyst moves to i-banking side of the biz

Veteran equity research analyst Peyton Green has moved to Piper Jaffray Cos.' investment banking side, according to two sources familiar with the matter.

Green will cover banks and thrifts in the Southeast, a region he covered as an equity analyst, a company source who asked not to be named told S&P Global Market Intelligence. An Oct. 5 Piper Jaffray research report noted that William Curtiss assumed coverage of Southeast banks; an Oct. 6 report noted that analyst Nathan Race took over coverage of Midwest depositories that Green covered.

Piper Jaffray had depository investment banking coverage of the Southeast when it added Michael Perry in 2016. But Perry is no longer with the company, according to an outside source who asked not to be named. Perry was based in New York, but Green will remain based in Nashville, Tenn.

It is not common for senior-level equity research analysts to join the investment banking side of the business, but it is not unprecedented for such a move to occur. Two examples in the bank coverage space are Ramsey Gregg, a D.A. Davidson & Co. investment banking managing director who left an equity research analyst position at FIG Partners LLC in 2007, and Jon Burke, a principal with The Burke Group who led the banking and financial institution research effort at The Robinson-Humphrey Co. Inc. before forming his own firm in 1995.

Green was previously with Sterne Agee & Leach Inc. and joined Piper Jaffray in 2015 when the company started expanding its financial institutions group. Green was one of many employees who covered depositories and became available after Sterne Agee announced a sale to Stifel Financial Corp., which did not want to add the target's investment banking and equities business because of overlap concerns.

A number of Sterne Agee i-bankers who covered banks and thrifts also went to Stephens Inc., which worked out a deal with Stifel and Sterne Agee to take on some personnel. Since expanding coverage of depositories, Stephens and Piper Jaffray have gained traction in the space. From Jan. 1, 2016, through Sept. 30, 2017, Stephens has landed 23 pending or completed whole bank or thrift M&A deals while Piper Jaffray has landed 12, according to SNL Financial data.

Piper Jaffray's depository investment banking team includes Kalan MacGinley and C.K. Lee who were added to cover the West and Southwest, respectively. Steven Kent and David Olson cover the Midwest and joined Piper Jaffray when the company bought River Branch Holdings LLC in 2015. Robert Hutchinson, the head of FIG investment banking at Piper Jaffray, along with Michael Barry have advised on many depository transactions in the Northeast.

Green is not the first bank equity research analyst to join a different part of the business at Piper Jaffray. Matthew Kelley, a former depository analyst, is now a sector specialist with Piper Jaffray's equities sales team.

Many analysts in the industry have found that the dynamics in the research industry have changed with the equities business facing challenges that include lower trading volumes, declining commissions and passive investment strategies taking share from active managers. Given the pressures on the equity research industry, it would not be surprising to see more veteran analysts try their hands in different parts of the business.

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