8-K
STIFEL FINANCIAL CORP false 0000720672 0000720672 2024-04-24 2024-04-24 0000720672 us-gaap:CommonStockMember 2024-04-24 2024-04-24 0000720672 us-gaap:SeriesBPreferredStockMember 2024-04-24 2024-04-24 0000720672 us-gaap:SeriesCPreferredStockMember 2024-04-24 2024-04-24 0000720672 us-gaap:SeriesDPreferredStockMember 2024-04-24 2024-04-24 0000720672 us-gaap:SeniorNotesMember 2024-04-24 2024-04-24
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant To Section 13 OR 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 24, 2024
STIFEL FINANCIAL CORP.
(Exact name of registrant as specified in its charter)
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| Delaware |
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001-09305 |
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43-1273600 |
| (State of incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.) |
501 N. Broadway, St. Louis, Missouri 63102-2188
(Address of principal executive offices and zip code)
(314) 342-2000
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
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| Title of Each Class |
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Trading
Symbol(s) |
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Name of Each Exchange
on Which Registered |
| Common Stock, $0.15 par value per share |
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SF |
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New York Stock Exchange |
| Depository Shares, each representing 1/1,000th interest in a share of 6.25% Non-Cumulative Preferred Stock, Series B |
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SF-PB |
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New York Stock Exchange |
| Depository Shares, each representing 1/1,000th interest in a share of 6.125% Non-Cumulative Preferred Stock, Series C |
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SF-PC |
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New York Stock Exchange |
| Depository Shares, each representing 1/1,000th interest in a share of 4.50% Non-Cumulative Preferred Stock, Series D |
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SF-PD |
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New York Stock Exchange |
| 5.20% Senior Notes due 2047 |
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SFB |
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New York Stock Exchange |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On April 24, 2024, Stifel Financial Corp. (the “Company”) reported its financial results for the quarter ended March 31, 2024. A copy of the press release containing this information is attached as Exhibit 99.1 to this Report on Form 8-K.
In addition, a copy of the Company’s Financial Supplement for the quarter ended March 31, 2024 is attached as Exhibit 99.2 to this Report on Form 8-K.
On Wednesday, April 24, 2024, at 9:30 a.m. Eastern time, the Company will hold a conference call to discussion its financial results and other related matters. A copy of the presentation for the conference call is attached as Exhibit 99.3 to this Report on Form 8-K.
The exhibits are being furnished pursuant to Item 2.02, and the information contained therein shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.
| Item 9.01 |
Financial Statements and Exhibits. |
(d) Exhibits.
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
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STIFEL FINANCIAL CORP. (Registrant) |
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| Date: April 24, 2024 |
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By: |
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/s/ James M. Marischen |
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Name: |
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James M. Marischen |
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Title: |
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Chief Financial Officer |
3
Exhibit 99.1
Stifel Reports First Quarter 2024 Results
ST. LOUIS, MO, April 24, 2024 – Stifel Financial Corp. (NYSE: SF) today reported net revenues of $1.2 billion for the
three months ended March 31, 2024, compared with $1.1 billion a year ago. Net income available to common shareholders was $154.3 million, or $1.40 per diluted common share, compared with $148.2 million, or $1.28 per diluted
common share for the first quarter of 2023. Non-GAAP net income available to common shareholders was $163.3 million, or $1.49 per diluted common share for the first quarter of 2024.
Ronald J. Kruszewski, Chairman and Chief Executive Officer, said “Total net revenue of more than $1.16 billion was our second highest
quarterly net revenue ever, as the momentum we highlighted at the end of 2023 carried into the first quarter. Record Global Wealth Management revenue and improving market conditions for our Institutional Group drove our top and bottom line growth
from the same period a year ago. While the outlook for the remainder of 2024 is not without risk, I remain cautiously optimistic that our diversified business will continue to generate strong returns for this year and beyond.”
Highlights
| • |
|
The Company reported net revenues of $1.2 billion, the second best quarter in its history, driven by higher asset management revenues, transactional revenues, and capital raising revenues. |
| • |
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Non-GAAP net income available to common shareholders of $1.49 per diluted common share. |
| • |
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Record asset management revenues, up 16% over the year-ago quarter. |
| • |
|
Capital raising revenues increased 56% over the year-ago quarter. |
| • |
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Record client assets of $467.7 billion, up 15% over the year-ago quarter. |
| • |
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Recruited 22 financial advisors during the quarter, including 4 experienced employee advisors and 11 experienced independent advisors. |
| • |
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Credit rating upgrade from S&P Global Ratings to BBB, from BBB-, with a stable outlook. |
| • |
|
Non-GAAP pre-tax margin of 19.8% as the Company maintained its focus on expense discipline, while continuing to invest in the business.
|
| • |
|
Annualized return on tangible common equity (ROTCE) (5) of 21%. |
| • |
|
Tangible book value per common share (7) of $30.67, up 2% from prior year.
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| Financial Summary (Unaudited) |
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| (000s) |
|
1Q 2024 |
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|
1Q 2023 |
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| GAAP Financial Highlights: |
|
| Net revenues |
|
$ |
1,163,038 |
|
|
$ |
1,106,793 |
|
| Net income (1) |
|
$ |
154,255 |
|
|
$ |
148,219 |
|
| Diluted EPS (1) |
|
$ |
1.40 |
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|
$ |
1.28 |
|
| Comp. ratio |
|
|
58.4 |
% |
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|
58.8 |
% |
| Non-comp. ratio |
|
|
22.8 |
% |
|
|
22.2 |
% |
| Pre-tax margin |
|
|
18.8 |
% |
|
|
19.0 |
% |
| Non-GAAP Financial Highlights: |
|
| Net revenues |
|
$ |
1,163,038 |
|
|
$ |
1,106,790 |
|
| Net income (1) (2) |
|
$ |
163,346 |
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|
$ |
161,268 |
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| Diluted EPS (1) (2) |
|
$ |
1.49 |
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|
$ |
1.40 |
|
| Comp. ratio (2) |
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|
58.0 |
% |
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|
58.0 |
% |
| Non-comp. ratio (2) |
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|
22.2 |
% |
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21.5 |
% |
| Pre-tax margin (3) |
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19.8 |
% |
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20.5 |
% |
| ROCE (4) |
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|
14.3 |
% |
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13.9 |
% |
| ROTCE (5) |
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20.9 |
% |
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19.9 |
% |
| Global Wealth
Management (assets and loans in millions) |
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| Net revenues |
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$ |
790,500 |
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|
$ |
757,186 |
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| Pre-tax net income |
|
$ |
290,748 |
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$ |
316,109 |
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| Total client assets |
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$ |
467,697 |
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$ |
405,988 |
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| Fee-based client assets |
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$ |
177,108 |
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$ |
149,541 |
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| Bank loans (6) |
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$ |
19,484 |
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|
$ |
20,935 |
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| Institutional
Group |
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| Net revenues |
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$ |
351,376 |
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$ |
332,613 |
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| Equity |
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$ |
206,417 |
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$ |
214,572 |
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| Fixed Income |
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$ |
144,959 |
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$ |
118,041 |
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| Pre-tax net
income |
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$ |
37,109 |
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|
$ |
33,720 |
|
Media Contact: Neil Shapiro
(212) 271-3447 | Investor Contact: Joel Jeffrey (212) 271- 3610 | www.stifel.com/investor-relations
Global Wealth Management
Global Wealth Management reported record net revenues
of $790.5 million for the three months ended March 31, 2024 compared with $757.2 million during the first quarter of 2023. Pre-tax net income was $290.7 million compared with
$316.1 million in the first quarter of 2023.
Highlights
| • |
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Recruited 22 financial advisors during the quarter, including 4 experienced employee advisors, and 11 experienced independent advisors, with total trailing 12 month production of $7 million. |
| • |
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Client assets of $467.7 billion, up 15% over the year-ago quarter. |
| • |
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Fee-based client assets of $177.1 billion, up 18% over the year-ago quarter. |
Net revenues increased 4% from a year ago:
| • |
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Transactional revenues increased 13% over the year-ago quarter reflecting an increase in client activity. |
| • |
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Asset management revenues increased 17% over the year-ago quarter reflecting higher asset values. |
| • |
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Net interest income decreased 16% over the year-ago quarter driven by changes in deposit mix, partially offset by higher interest rates. |
Total Expenses:
| • |
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Compensation expense as a percent of net revenues increased to 49.3% primarily as a result of higher compensable revenues. |
| • |
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Provision for credit losses was primarily impacted by changes in the outlook for macroeconomic conditions. |
| • |
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Non-compensation operating expenses as a percent of net revenues increased to 13.9% primarily as a result of higher litigation-related and FDIC insurance expense, partially offset
by revenue growth over the year-ago quarter.
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| Summary Results of Operations |
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| (000s) |
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1Q 2024 |
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1Q 2023 |
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| Net revenues |
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$ |
790,500 |
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$ |
757,186 |
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| Transactional revenues |
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|
181,753 |
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|
161,255 |
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| Asset management |
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367,450 |
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315,537 |
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| Net interest income |
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236,269 |
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281,932 |
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| Investment banking |
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4,280 |
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4,158 |
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| Other income |
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|
748 |
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(5,696 |
) |
| Total expenses |
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$ |
499,752 |
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$ |
441,077 |
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| Compensation expense |
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389,536 |
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|
342,423 |
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| Provision for credit losses |
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4,968 |
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4,920 |
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| Non-comp. opex |
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|
105,248 |
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|
|
93,734 |
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| Pre-tax net income |
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$ |
290,748 |
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|
$ |
316,109 |
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| Compensation ratio |
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49.3 |
% |
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45.2 |
% |
| Non-compensation ratio |
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13.9 |
% |
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13.1 |
% |
| Pre-tax
margin |
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36.8 |
% |
|
|
41.7 |
% |
Stifel Financial
Corp. | Page 2
Institutional Group
Institutional Group reported net revenues of
$351.4 million for the three months ended March 31, 2024 compared with $332.6 million during the first quarter of 2023. Pre-tax net income was $37.1 million compared with $33.7 million
in the first quarter of 2023.
Highlights
Investment banking revenues increased 1% from a year ago:
| • |
|
Advisory revenues decreased 21% from the year-ago quarter driven by lower levels of completed advisory transactions. |
| • |
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Fixed income capital raising revenues increased 57% over the year-ago quarter primarily driven by higher bond issuances. |
| • |
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Equity capital raising revenues increased 63% over the year-ago quarter driven by higher volumes. |
Fixed income transactional revenues increased 24% from a year ago:
| • |
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Fixed income transactional revenues increased from the year-ago quarter driven by improved market conditions and increased client activity. |
Equity transactional revenues increased 3% from a year ago:
| • |
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Equity transactional revenues increased from the year-ago quarter primarily driven by higher trading gains. |
Total Expenses:
| • |
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Compensation expense as a percent of net revenues decreased to 61.4% primarily as a result of higher revenues. |
| • |
|
Non-compensation operating expenses as a percent of net revenues remained consistent with the year-ago quarter.
|
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|
| Summary Results of Operations |
|
| (000s) |
|
1Q 2024 |
|
|
1Q 2023 |
|
| Net revenues |
|
$ |
351,376 |
|
|
$ |
332,613 |
|
| Investment banking |
|
|
209,669 |
|
|
|
207,721 |
|
| Advisory |
|
|
119,252 |
|
|
|
151,063 |
|
| Fixed income capital raising |
|
|
50,116 |
|
|
|
31,986 |
|
| Equity capital raising |
|
|
40,301 |
|
|
|
24,672 |
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| Fixed income transactional |
|
|
88,654 |
|
|
|
71,428 |
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| Equity transactional |
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|
54,083 |
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|
52,389 |
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| Other |
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(1,030 |
) |
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|
1,075 |
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| Total expenses |
|
$ |
314,267 |
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|
$ |
298,893 |
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| Compensation expense |
|
|
215,749 |
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|
|
205,905 |
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| Non-comp. opex. |
|
|
98,518 |
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|
|
92,988 |
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| Pre-tax net income |
|
$ |
37,109 |
|
|
$ |
33,720 |
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| Compensation ratio |
|
|
61.4 |
% |
|
|
61.9 |
% |
| Non-compensation ratio |
|
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28.0 |
% |
|
|
28.0 |
% |
| Pre-tax
margin |
|
|
10.6 |
% |
|
|
10.1 |
% |
Stifel Financial
Corp. | Page 3
Other Matters
Highlights
| • |
|
The Company repurchased $159.3 million of its outstanding common stock during the first quarter, including $98.6 million in connection with net-share settlements under
its equity compensation plan. |
| • |
|
Weighted average diluted shares outstanding decreased primarily as a result of share repurchases. The Company has repurchased 6.6 million shares since the first quarter of 2023. |
| • |
|
Credit rating upgrade from S&P Global Ratings to BBB, from BBB-, with a stable outlook. |
| • |
|
The Board of Directors declared a $0.42 quarterly dividend per share payable on March 15, 2024 to common shareholders of record on March 1, 2024. |
| • |
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The Board of Directors declared a quarterly dividend on the outstanding shares of the Company’s preferred stock payable on March 15, 2024 to shareholders of record on March 1, 2024. |
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| |
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1Q 2024 |
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|
1Q 2023 |
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| Common stock
repurchases |
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| Repurchases (000s) |
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$ |
159,348 |
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$ |
171,527 |
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| Number of shares (000s) |
|
|
2,254 |
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|
2,752 |
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| Average price |
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$ |
70.71 |
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$ |
62.32 |
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| Period end shares (000s) |
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102,649 |
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|
106,172 |
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| Weighted average diluted shares outstanding (000s) |
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|
109,985 |
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|
115,390 |
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| Effective tax rate |
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25.2 |
% |
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24.9 |
% |
| Stifel Financial Corp. (8) |
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| Tier 1 common capital ratio |
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14.3 |
% |
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13.9 |
% |
| Tier 1 risk based capital ratio |
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17.3 |
% |
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16.8 |
% |
| Tier 1 leverage capital ratio |
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10.6 |
% |
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10.9 |
% |
| Tier 1 capital (MM) |
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$ |
3,911 |
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$ |
3,965 |
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| Risk weighted assets (MM) |
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$ |
22,588 |
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$ |
23,534 |
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| Average assets (MM) |
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$ |
37,018 |
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$ |
36,415 |
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| Quarter end assets (MM) |
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$ |
38,258 |
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$ |
38,598 |
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| Agency |
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Rating |
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Outlook |
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| Fitch Ratings |
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BBB+ |
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Stable |
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| S&P Global Ratings |
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BBB |
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Stable |
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Stifel Financial
Corp. | Page 4
Conference Call Information
Stifel Financial Corp. will host its first quarter 2024 financial results conference call on Wednesday, April 24, 2024,
at 9:30 a.m. Eastern Time. The conference call may include forward-looking statements.
All interested parties are invited to listen to
Stifel’s Chairman and CEO, Ronald J. Kruszewski, by dialing (866) 409-1555 and referencing conference ID 7408307. A live audio webcast of the call, as well as a presentation highlighting the
Company’s results, will be available through the Company’s web site, www.stifel.com. For those who cannot listen to the live broadcast, a replay of the broadcast will be available through the above-referenced web site beginning
approximately one hour following the completion of the call.
Company Information
Stifel Financial Corp. (NYSE: SF) is a financial services holding company headquartered in St. Louis, Missouri, that conducts its banking, securities, and
financial services business through several wholly owned subsidiaries. Stifel’s broker-dealer clients are served in the United States through Stifel, Nicolaus & Company, Incorporated, including its Eaton Partners and Miller Buckfire
business divisions; Keefe, Bruyette & Woods, Inc.; and Stifel Independent Advisors, LLC. The Company’s broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services
to individual investors, professional money managers, businesses, and municipalities. Stifel Bank and Stifel Bank & Trust offer a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. and Stifel Trust Company
Delaware, N.A. offer trust and related services. To learn more about Stifel, please visit the Company’s website at www.stifel.com. For global disclosures, please visit
www.stifel.com/investor-relations/press-releases.
A financial
summary follows. Financial, statistical and business-related information, as well as information regarding business and segment trends, is included in the financial supplement. Both the earnings release and the financial supplement are available
online in the Investor Relations section at www.stifel.com/investor-relations.
The information provided herein and in the financial supplement,
including information provided on the Company’s earnings conference calls, may include certain non-GAAP financial measures. The definition of such measures or reconciliation of such measures to the
comparable U.S. GAAP figures are included in this earnings release and the financial supplement, both of which are available online in the Investor Relations section at www.stifel.com/investor-relations.
Cautionary Note Regarding Forward-Looking Statements
This earnings release contains certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this earnings release not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking
statements in this earnings release are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. Factors that may cause actual results to differ materially from
those contemplated by such forward-looking statements include, among other things, the following possibilities: the ability to successfully integrate acquired companies or the branch offices and financial advisors; a material adverse change in
financial condition; the risk of borrower, depositor, and other customer attrition; a change in general business and economic conditions; changes in the interest rate environment, deposit flows, loan demand, real estate values, and competition;
changes in accounting principles, policies, or guidelines; changes in legislation and regulation; other economic, competitive, governmental, regulatory, geopolitical, and technological factors affecting the companies’ operations, pricing, and
services; and other risk factors referred to from time to time in filings made by Stifel Financial Corp. with the Securities and Exchange Commission. For information about the risks and important factors that could affect the Company’s future
results, financial condition and liquidity, see “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Forward-looking
statements speak only as to the date they are made. The Company disclaims any intent or obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
Stifel Financial
Corp. | Page 5
Summary Results of Operations (Unaudited)
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Three Months Ended |
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| (000s, except per share amounts) |
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3/31/2024 |
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3/31/2023 |
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|
% Change |
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|
12/31/2023 |
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|
% Change |
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| Revenues: |
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| Commissions |
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$ |
185,476 |
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$ |
169,550 |
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|
9.4 |
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$ |
173,614 |
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|
|
6.8 |
|
| Principal transactions |
|
|
139,014 |
|
|
|
115,522 |
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|
|
20.3 |
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|
|
154,377 |
|
|
|
(10.0 |
) |
| Investment banking |
|
|
213,949 |
|
|
|
211,879 |
|
|
|
1.0 |
|
|
|
205,664 |
|
|
|
4.0 |
|
| Asset management |
|
|
367,476 |
|
|
|
315,569 |
|
|
|
16.4 |
|
|
|
330,536 |
|
|
|
11.2 |
|
| Other income |
|
|
4,950 |
|
|
|
(2,293 |
) |
|
|
315.9 |
|
|
|
9,687 |
|
|
|
(48.9 |
) |
| Operating revenues |
|
|
910,865 |
|
|
|
810,227 |
|
|
|
12.4 |
|
|
|
873,878 |
|
|
|
4.2 |
|
| Interest revenue |
|
|
506,828 |
|
|
|
451,564 |
|
|
|
12.2 |
|
|
|
516,213 |
|
|
|
(1.8 |
) |
| Total revenues |
|
|
1,417,693 |
|
|
|
1,261,791 |
|
|
|
12.4 |
|
|
|
1,390,091 |
|
|
|
2.0 |
|
| Interest expense |
|
|
254,655 |
|
|
|
154,998 |
|
|
|
64.3 |
|
|
|
243,712 |
|
|
|
4.5 |
|
| Net revenues |
|
|
1,163,038 |
|
|
|
1,106,793 |
|
|
|
5.1 |
|
|
|
1,146,379 |
|
|
|
1.5 |
|
| Non-interest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Compensation and benefits |
|
|
679,695 |
|
|
|
651,190 |
|
|
|
4.4 |
|
|
|
674,437 |
|
|
|
0.8 |
|
| Non-compensation operating expenses |
|
|
264,652 |
|
|
|
245,720 |
|
|
|
7.7 |
|
|
|
265,947 |
|
|
|
(0.5 |
) |
| Total non-interest expenses |
|
|
944,347 |
|
|
|
896,910 |
|
|
|
5.3 |
|
|
|
940,384 |
|
|
|
0.4 |
|
| Income before income taxes |
|
|
218,691 |
|
|
|
209,883 |
|
|
|
4.2 |
|
|
|
205,995 |
|
|
|
6.2 |
|
| Provision for income taxes |
|
|
55,116 |
|
|
|
52,344 |
|
|
|
5.3 |
|
|
|
43,511 |
|
|
|
26.7 |
|
| Net income |
|
|
163,575 |
|
|
|
157,539 |
|
|
|
3.8 |
|
|
|
162,484 |
|
|
|
0.7 |
|
| Preferred dividends |
|
|
9,320 |
|
|
|
9,320 |
|
|
|
0.0 |
|
|
|
9,320 |
|
|
|
0.0 |
|
| Net income available to common shareholders |
|
$ |
154,255 |
|
|
$ |
148,219 |
|
|
|
4.1 |
|
|
$ |
153,164 |
|
|
|
0.7 |
|
| Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
1.48 |
|
|
$ |
1.36 |
|
|
|
8.8 |
|
|
$ |
1.47 |
|
|
|
0.7 |
|
| Diluted |
|
$ |
1.40 |
|
|
$ |
1.28 |
|
|
|
9.4 |
|
|
$ |
1.38 |
|
|
|
1.4 |
|
| Cash dividends declared per common share |
|
$ |
0.42 |
|
|
$ |
0.36 |
|
|
|
16.7 |
|
|
$ |
0.36 |
|
|
|
16.7 |
|
| Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
| Basic |
|
|
104,275 |
|
|
|
108,754 |
|
|
|
(4.1 |
) |
|
|
103,934 |
|
|
|
0.3 |
|
| Diluted |
|
|
109,985 |
|
|
|
115,390 |
|
|
|
(4.7 |
) |
|
|
111,330 |
|
|
|
(1.2 |
) |
Stifel Financial
Corp. | Page 6
Non-GAAP Financial Measures (9)
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
| (000s, except per share amounts) |
|
3/31/2024 |
|
|
3/31/2023 |
|
| GAAP net income |
|
$ |
163,575 |
|
|
$ |
157,539 |
|
| Preferred dividend |
|
|
9,320 |
|
|
|
9,320 |
|
| Net income available to common shareholders |
|
|
154,255 |
|
|
|
148,219 |
|
|
|
|
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
| Merger-related (10) |
|
|
12,154 |
|
|
|
17,386 |
|
| Provision for income taxes (11) |
|
|
(3,063 |
) |
|
|
(4,337 |
) |
| Total non-GAAP adjustments |
|
|
9,091 |
|
|
|
13,049 |
|
| Non-GAAP net income available to common
shareholders |
|
$ |
163,346 |
|
|
$ |
161,268 |
|
| Weighted average diluted shares outstanding |
|
|
109,985 |
|
|
|
115,390 |
|
|
|
|
| GAAP earnings per diluted common share |
|
$ |
1.48 |
|
|
$ |
1.36 |
|
| Non-GAAP adjustments |
|
|
0.09 |
|
|
|
0.12 |
|
| Non-GAAP earnings per diluted common share |
|
$ |
1.57 |
|
|
$ |
1.48 |
|
| GAAP earnings per diluted common share available to common shareholders |
|
$ |
1.40 |
|
|
$ |
1.28 |
|
| Non-GAAP adjustments |
|
|
0.09 |
|
|
|
0.12 |
|
| Non-GAAP
earnings per diluted common share available to common shareholders |
|
$ |
1.49 |
|
|
$ |
1.40 |
|
GAAP to Non-GAAP Reconciliation (9)
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
| (000s) |
|
3/31/2024 |
|
|
3/31/2023 |
|
| GAAP compensation and benefits |
|
$ |
679,695 |
|
|
$ |
651,190 |
|
| As a percentage of net revenues |
|
|
58.4 |
% |
|
|
58.8 |
% |
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
| Merger-related (10) |
|
|
(5,533 |
) |
|
|
(9,253 |
) |
| Non-GAAP compensation and benefits |
|
$ |
674,162 |
|
|
$ |
641,937 |
|
| As a percentage of non-GAAP net revenues |
|
|
58.0 |
% |
|
|
58.0 |
% |
|
|
|
| GAAP non-compensation expenses |
|
$ |
264,652 |
|
|
$ |
245,720 |
|
| As a percentage of net revenues |
|
|
22.8 |
% |
|
|
22.2 |
% |
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
| Merger-related (10) |
|
|
(6,621 |
) |
|
|
(8,136 |
) |
| Non-GAAP
non-compensation expenses |
|
$ |
258,031 |
|
|
$ |
237,584 |
|
| As a percentage of non-GAAP net revenues |
|
|
22.2 |
% |
|
|
21.5 |
% |
| Total merger-related expenses |
|
$ |
12,154 |
|
|
$ |
17,386 |
|
Stifel Financial
Corp. | Page 7
Footnotes
| (1) |
Represents available to common shareholders. |
| (2) |
Reconciliations of the Company’s GAAP results to these non-GAAP
measures are discussed within and under “Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliation.” |
| (3) |
Non-GAAP pre-tax margin is
calculated by adding total merger-related expenses (non-GAAP adjustments) and dividing it by non-GAAP net revenues. See
“Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliation.” |
| (4) |
Return on average common equity (“ROCE”) is calculated by dividing annualized net income applicable
to common shareholders by average common shareholders’ equity or, in the case of non-GAAP ROCE, calculated by dividing non-GAAP net income applicable to commons
shareholders by average common shareholders’ equity. |
| (5) |
Return on average tangible common equity (“ROTCE”) is calculated by dividing annualized net income
applicable to common shareholders by average tangible shareholders’ equity or, in the case of non-GAAP ROTCE, calculated by dividing non-GAAP net income applicable
to common shareholders by average tangible common equity. Tangible common equity, also a non-GAAP financial measure, equals total common shareholders’ equity less goodwill and identifiable intangible
assets and the deferred taxes on goodwill and intangible assets. Average deferred taxes on goodwill and intangible assets was $73.9 million and $62.3 million as of March 31, 2024 and 2023, respectively. |
| (6) |
Includes loans held for sale. |
| (7) |
Tangible book value per common share represents shareholders’ equity (excluding preferred stock) divided
by period end common shares outstanding. Tangible common shareholders’ equity equals total common shareholders’ equity less goodwill and identifiable intangible assets and the deferred taxes on goodwill and intangible assets.
|
| (8) |
Capital ratios are estimates at time of the Company’s earnings release, April 24, 2024.
|
| (9) |
The Company prepares its Consolidated Financial Statements using accounting principles generally accepted in
the United States (U.S. GAAP). The Company may disclose certain “non-GAAP financial measures” in the course of its earnings releases, earnings conference calls, financial presentations and otherwise.
The Securities and Exchange Commission defines a “non-GAAP financial measure” as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject
to adjustments that effectively exclude, or include, amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. Non-GAAP financial measures disclosed by the
Company are provided as additional information to analysts, investors and other stakeholders in order to provide them with greater transparency about, or an alternative method for assessing the Company’s financial condition or operating
results. These measures are not in accordance with, or a substitute for U.S. GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever the Company
refers to a non-GAAP financial measure, it will also define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of
the differences between the non-GAAP financial measure it references and such comparable U.S. GAAP financial measure. |
| (10) |
Primarily related to charges attributable to integration-related activities, signing bonuses, amortization of
restricted stock awards, debentures, and promissory notes issued as retention, additional earn-out expense, and amortization of intangible assets acquired. These costs were directly related to acquisitions of
certain businesses and are not representative of the costs of running the Company’s on-going business. |
| (11) |
Primarily represents the Company’s effective tax rate for the period applied to the non-GAAP adjustments. |
Stifel Financial
Corp. | Page 8
EX-99.2
Exhibit 99.2
First Quarter 2024 Earnings Results
|
|
|
| Quarterly Financial Supplement |
|
Page |
|
|
| Consolidated Financial Highlights |
|
2 |
|
|
| GAAP Consolidated Results of Operations |
|
3 |
|
|
| Non-GAAP Consolidated Results of Operations |
|
4 |
|
|
| Consolidated Financial Summary |
|
5 |
|
|
| Consolidated Financial Information and Metrics |
|
6 |
|
|
| Regulatory Capital |
|
7 |
|
|
| Global Wealth Management - Summary Results of Operations |
|
8 |
|
|
| Global Wealth Management - Statistical Information |
|
9 |
|
|
| Institutional Group - Summary Results of Operations |
|
10 |
|
|
| Stifel Bancorp - Financial Information and Credit Metrics |
|
11 |
|
|
| Stifel Bancorp - Loan and Investment Portfolio |
|
12 |
|
|
| Loans and Lending Commitments - Allowance for Credit Losses |
|
13 |
|
|
| Consolidated Net Interest Income |
|
14 |
|
|
| Stifel Bancorp Net Interest Income |
|
15 |
|
|
| GAAP to Core Reconciliation |
|
16 |
|
|
| Footnotes |
|
17 |
|
|
| Disclaimer and Legal Notice |
|
18 |
|
|
|
| Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release |
|
Page 1 of 18 |
Consolidated Financial Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
| (Unaudited, 000s, except per share information) |
|
3/31/2024 |
|
|
3/31/2023 |
|
|
% Change |
|
|
12/31/2023 |
|
|
% Change |
|
| Net revenues |
|
$ |
1,163,038 |
|
|
$ |
1,106,793 |
|
|
|
5.1 |
% |
|
$ |
1,146,379 |
|
|
|
1.5 |
% |
| Net income |
|
$ |
163,575 |
|
|
$ |
157,539 |
|
|
|
3.8 |
% |
|
$ |
162,484 |
|
|
|
0.7 |
% |
| Preferred dividends |
|
|
9,320 |
|
|
|
9,320 |
|
|
|
0.0 |
% |
|
|
9,320 |
|
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income available to common shareholders |
|
$ |
154,255 |
|
|
$ |
148,219 |
|
|
|
4.1 |
% |
|
$ |
153,164 |
|
|
|
0.7 |
% |
| Earnings per diluted common share |
|
$ |
1.49 |
|
|
$ |
1.36 |
|
|
|
9.6 |
% |
|
$ |
1.46 |
|
|
|
2.1 |
% |
| Earnings per diluted common share available to common shareholders |
|
$ |
1.40 |
|
|
$ |
1.28 |
|
|
|
9.4 |
% |
|
$ |
1.38 |
|
|
|
1.4 |
% |
| Non-GAAP financial summary (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net revenues |
|
$ |
1,163,038 |
|
|
$ |
1,106,790 |
|
|
|
5.1 |
% |
|
$ |
1,146,419 |
|
|
|
1.4 |
% |
| Net income |
|
$ |
172,666 |
|
|
$ |
170,588 |
|
|
|
1.2 |
% |
|
$ |
175,907 |
|
|
|
(1.8 |
%) |
| Preferred dividends |
|
|
9,320 |
|
|
|
9,320 |
|
|
|
0.0 |
% |
|
|
9,320 |
|
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income available to common shareholders |
|
$ |
163,346 |
|
|
|
161,268 |
|
|
|
1.3 |
% |
|
|
166,587 |
|
|
|
(1.9 |
%) |
| Earnings per diluted common share |
|
$ |
1.57 |
|
|
$ |
1.48 |
|
|
|
6.1 |
% |
|
$ |
1.58 |
|
|
|
(0.6 |
%) |
| Earnings per diluted common share available to common shareholders |
|
$ |
1.49 |
|
|
$ |
1.40 |
|
|
|
6.4 |
% |
|
$ |
1.50 |
|
|
|
(0.7 |
%) |
|
|
|
|
|
| Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
104,275 |
|
|
|
108,754 |
|
|
|
(4.1 |
%) |
|
|
103,934 |
|
|
|
0.3 |
% |
| Diluted |
|
|
109,985 |
|
|
|
115,390 |
|
|
|
(4.7 |
%) |
|
|
111,330 |
|
|
|
(1.2 |
%) |
| Period end common shares outstanding |
|
|
102,649 |
|
|
|
106,172 |
|
|
|
(3.3 |
%) |
|
|
101,062 |
|
|
|
1.6 |
% |
| Cash dividends declared per common share |
|
$ |
0.42 |
|
|
$ |
0.36 |
|
|
|
16.7 |
% |
|
$ |
0.36 |
|
|
|
16.7 |
% |
|
|
|
| Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release |
|
Page 2 of 18 |
GAAP Consolidated Results of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
| (Unaudited, 000s, except per share information) |
|
3/31/2024 |
|
|
3/31/2023 |
|
|
% Change |
|
|
12/31/2023 |
|
|
% Change |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commissions |
|
$ |
185,476 |
|
|
$ |
169,550 |
|
|
|
9.4 |
% |
|
$ |
173,614 |
|
|
|
6.8 |
% |
| Principal transactions |
|
|
139,014 |
|
|
|
115,522 |
|
|
|
20.3 |
% |
|
|
154,377 |
|
|
|
(10.0 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Transactional revenues |
|
|
324,490 |
|
|
|
285,072 |
|
|
|
13.8 |
% |
|
|
327,991 |
|
|
|
(1.1 |
%) |
| Capital raising |
|
|
94,697 |
|
|
|
60,816 |
|
|
|
55.7 |
% |
|
|
76,286 |
|
|
|
24.1 |
% |
| Advisory |
|
|
119,252 |
|
|
|
151,063 |
|
|
|
(21.1 |
%) |
|
|
129,378 |
|
|
|
(7.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment banking |
|
|
213,949 |
|
|
|
211,879 |
|
|
|
1.0 |
% |
|
|
205,664 |
|
|
|
4.0 |
% |
| Asset management |
|
|
367,476 |
|
|
|
315,569 |
|
|
|
16.4 |
% |
|
|
330,536 |
|
|
|
11.2 |
% |
| Other income |
|
|
4,950 |
|
|
|
(2,293 |
) |
|
|
315.9 |
% |
|
|
9,687 |
|
|
|
(48.9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating revenues |
|
|
910,865 |
|
|
|
810,227 |
|
|
|
12.4 |
% |
|
|
873,878 |
|
|
|
4.2 |
% |
| Interest revenue |
|
|
506,828 |
|
|
|
451,564 |
|
|
|
12.2 |
% |
|
|
516,213 |
|
|
|
(1.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
1,417,693 |
|
|
|
1,261,791 |
|
|
|
12.4 |
% |
|
|
1,390,091 |
|
|
|
2.0 |
% |
| Interest expense |
|
|
254,655 |
|
|
|
154,998 |
|
|
|
64.3 |
% |
|
|
243,712 |
|
|
|
4.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net revenues |
|
|
1,163,038 |
|
|
|
1,106,793 |
|
|
|
5.1 |
% |
|
|
1,146,379 |
|
|
|
1.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Compensation and benefits |
|
|
679,695 |
|
|
|
651,190 |
|
|
|
4.4 |
% |
|
|
674,437 |
|
|
|
0.8 |
% |
| Occupancy and equipment rental |
|
|
88,712 |
|
|
|
82,140 |
|
|
|
8.0 |
% |
|
|
88,182 |
|
|
|
0.6 |
% |
| Communication and office supplies |
|
|
47,367 |
|
|
|
46,136 |
|
|
|
2.7 |
% |
|
|
47,332 |
|
|
|
0.1 |
% |
| Commissions and floor brokerage |
|
|
15,767 |
|
|
|
14,440 |
|
|
|
9.2 |
% |
|
|
15,379 |
|
|
|
2.5 |
% |
| Provision for credit losses |
|
|
5,268 |
|
|
|
4,920 |
|
|
|
7.1 |
% |
|
|
2,263 |
|
|
|
132.8 |
% |
| Investment banking expenses |
|
|
7,729 |
|
|
|
5,913 |
|
|
|
30.7 |
% |
|
|
6,601 |
|
|
|
17.1 |
% |
| Other operating expenses |
|
|
99,809 |
|
|
|
92,171 |
|
|
|
8.3 |
% |
|
|
106,190 |
|
|
|
(6.0 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total non-interest expenses |
|
|
944,347 |
|
|
|
896,910 |
|
|
|
5.3 |
% |
|
|
940,384 |
|
|
|
0.4 |
% |
| Income before income taxes |
|
|
218,691 |
|
|
|
209,883 |
|
|
|
4.2 |
% |
|
|
205,995 |
|
|
|
6.2 |
% |
| Provision for income taxes |
|
|
55,116 |
|
|
|
52,344 |
|
|
|
5.3 |
% |
|
|
43,511 |
|
|
|
26.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
|
163,575 |
|
|
|
157,539 |
|
|
|
3.8 |
% |
|
|
162,484 |
|
|
|
0.7 |
% |
| Preferred dividends |
|
|
9,320 |
|
|
|
9,320 |
|
|
|
0.0 |
% |
|
|
9,320 |
|
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income available to common shareholders |
|
$ |
154,255 |
|
|
$ |
148,219 |
|
|
|
4.1 |
% |
|
$ |
153,164 |
|
|
|
0.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
1.48 |
|
|
$ |
1.36 |
|
|
|
8.8 |
% |
|
$ |
1.47 |
|
|
|
0.7 |
% |
| Diluted |
|
$ |
1.40 |
|
|
$ |
1.28 |
|
|
|
9.4 |
% |
|
$ |
1.38 |
|
|
|
1.4 |
% |
| Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
104,275 |
|
|
|
108,754 |
|
|
|
(4.1 |
%) |
|
|
103,934 |
|
|
|
0.3 |
% |
| Diluted |
|
|
109,985 |
|
|
|
115,390 |
|
|
|
(4.7 |
%) |
|
|
111,330 |
|
|
|
(1.2 |
%) |
| Cash dividends declared per common share |
|
$ |
0.42 |
|
|
$ |
0.36 |
|
|
|
16.7 |
% |
|
$ |
0.36 |
|
|
|
16.7 |
% |
|
|
|
| Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release |
|
Page 3 of 18 |
Non-GAAP Consolidated Results of Operations (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
| (Unaudited, 000s, except per share information) |
|
3/31/2024 |
|
|
3/31/2023 |
|
|
% Change |
|
|
12/31/2023 |
|
|
% Change |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commissions |
|
$ |
185,476 |
|
|
$ |
169,550 |
|
|
|
9.4 |
% |
|
$ |
173,614 |
|
|
|
6.8 |
% |
| Principal transactions |
|
|
139,014 |
|
|
|
115,522 |
|
|
|
20.3 |
% |
|
|
154,377 |
|
|
|
(10.0 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Transactional revenues |
|
|
324,490 |
|
|
|
285,072 |
|
|
|
13.8 |
% |
|
|
327,991 |
|
|
|
(1.1 |
%) |
| Capital raising |
|
|
94,697 |
|
|
|
60,816 |
|
|
|
55.7 |
% |
|
|
76,286 |
|
|
|
24.1 |
% |
| Advisory |
|
|
119,252 |
|
|
|
151,063 |
|
|
|
(21.1 |
%) |
|
|
129,378 |
|
|
|
(7.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment banking |
|
|
213,949 |
|
|
|
211,879 |
|
|
|
1.0 |
% |
|
|
205,664 |
|
|
|
4.0 |
% |
| Asset management |
|
|
367,476 |
|
|
|
315,569 |
|
|
|
16.4 |
% |
|
|
330,536 |
|
|
|
11.2 |
% |
| Other income |
|
|
4,950 |
|
|
|
(2,293 |
) |
|
|
315.9 |
% |
|
|
9,726 |
|
|
|
(49.1 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating revenues |
|
|
910,865 |
|
|
|
810,227 |
|
|
|
12.4 |
% |
|
|
873,917 |
|
|
|
4.2 |
% |
| Interest revenue |
|
|
506,828 |
|
|
|
451,564 |
|
|
|
12.2 |
% |
|
|
516,213 |
|
|
|
(1.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
1,417,693 |
|
|
|
1,261,791 |
|
|
|
12.4 |
% |
|
|
1,390,130 |
|
|
|
2.0 |
% |
| Interest expense |
|
|
254,655 |
|
|
|
155,001 |
|
|
|
64.3 |
% |
|
|
243,711 |
|
|
|
4.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net revenues |
|
|
1,163,038 |
|
|
|
1,106,790 |
|
|
|
5.1 |
% |
|
|
1,146,419 |
|
|
|
1.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Compensation and benefits |
|
|
674,162 |
|
|
|
641,937 |
|
|
|
5.0 |
% |
|
|
665,234 |
|
|
|
1.3 |
% |
| Occupancy and equipment rental |
|
|
88,665 |
|
|
|
82,039 |
|
|
|
8.1 |
% |
|
|
88,127 |
|
|
|
0.6 |
% |
| Communication and office supplies |
|
|
47,364 |
|
|
|
46,134 |
|
|
|
2.7 |
% |
|
|
47,328 |
|
|
|
0.1 |
% |
| Commissions and floor brokerage |
|
|
15,767 |
|
|
|
14,440 |
|
|
|
9.2 |
% |
|
|
15,379 |
|
|
|
2.5 |
% |
| Provision for credit losses |
|
|
5,268 |
|
|
|
4,920 |
|
|
|
7.1 |
% |
|
|
2,263 |
|
|
|
132.8 |
% |
| Investment banking expenses |
|
|
7,729 |
|
|
|
5,913 |
|
|
|
30.7 |
% |
|
|
6,601 |
|
|
|
17.1 |
% |
| Other operating expenses |
|
|
93,238 |
|
|
|
84,138 |
|
|
|
10.8 |
% |
|
|
98,571 |
|
|
|
(5.4 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total non-interest expenses |
|
|
932,193 |
|
|
|
879,521 |
|
|
|
6.0 |
% |
|
|
923,503 |
|
|
|
0.9 |
% |
| Income before income taxes |
|
|
230,845 |
|
|
|
227,269 |
|
|
|
1.6 |
% |
|
|
222,916 |
|
|
|
3.6 |
% |
| Provision for income taxes |
|
|
58,179 |
|
|
|
56,681 |
|
|
|
2.6 |
% |
|
|
47,009 |
|
|
|
23.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
|
172,666 |
|
|
|
170,588 |
|
|
|
1.2 |
% |
|
|
175,907 |
|
|
|
(1.8 |
%) |
| Preferred dividends |
|
|
9,320 |
|
|
|
9,320 |
|
|
|
0.0 |
% |
|
|
9,320 |
|
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income available to common shareholders |
|
$ |
163,346 |
|
|
$ |
161,268 |
|
|
|
1.3 |
% |
|
$ |
166,587 |
|
|
|
(1.9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
1.57 |
|
|
$ |
1.48 |
|
|
|
6.1 |
% |
|
$ |
1.60 |
|
|
|
(1.9 |
%) |
| Diluted |
|
$ |
1.49 |
|
|
$ |
1.40 |
|
|
|
6.4 |
% |
|
$ |
1.50 |
|
|
|
(0.7 |
%) |
| Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
104,275 |
|
|
|
108,754 |
|
|
|
(4.1 |
%) |
|
|
103,934 |
|
|
|
0.3 |
% |
| Diluted |
|
|
109,985 |
|
|
|
115,390 |
|
|
|
(4.7 |
%) |
|
|
111,330 |
|
|
|
(1.2 |
%) |
| Cash dividends declared per common share |
|
$ |
0.42 |
|
|
$ |
0.36 |
|
|
|
16.7 |
% |
|
$ |
0.36 |
|
|
|
16.7 |
% |
|
|
|
| Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release |
|
Page 4 of 18 |
Consolidated Financial Summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
| (Unaudited, 000s) |
|
3/31/2024 |
|
|
3/31/2023 |
|
|
% Change |
|
|
12/31/2023 |
|
|
% Change |
|
| Net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Global Wealth Management |
|
$ |
790,500 |
|
|
$ |
757,186 |
|
|
|
4.4 |
% |
|
$ |
766,028 |
|
|
|
3.2 |
% |
| Institutional Group |
|
|
351,376 |
|
|
|
332,613 |
|
|
|
5.6 |
% |
|
|
359,292 |
|
|
|
(2.2 |
%) |
| Other |
|
|
21,162 |
|
|
|
16,994 |
|
|
|
24.5 |
% |
|
|
21,059 |
|
|
|
0.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total net revenues |
|
$ |
1,163,038 |
|
|
$ |
1,106,793 |
|
|
|
5.1 |
% |
|
$ |
1,146,379 |
|
|
|
1.5 |
% |
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Global Wealth Management |
|
$ |
499,752 |
|
|
$ |
441,077 |
|
|
|
13.3 |
% |
|
$ |
464,668 |
|
|
|
7.6 |
% |
| Institutional Group |
|
|
314,267 |
|
|
|
298,893 |
|
|
|
5.1 |
% |
|
|
351,521 |
|
|
|
(10.6 |
%) |
| Other |
|
|
130,328 |
|
|
|
156,940 |
|
|
|
(17.0 |
%) |
|
|
124,195 |
|
|
|
4.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total operating expenses |
|
$ |
944,347 |
|
|
$ |
896,910 |
|
|
|
5.3 |
% |
|
$ |
940,384 |
|
|
|
0.4 |
% |
| Operating contribution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Global Wealth Management |
|
$ |
290,748 |
|
|
$ |
316,109 |
|
|
|
(8.0 |
%) |
|
$ |
301,360 |
|
|
|
(3.5 |
%) |
| Institutional Group |
|
|
37,109 |
|
|
|
33,720 |
|
|
|
10.1 |
% |
|
|
7,771 |
|
|
|
377.5 |
% |
| Other |
|
|
(109,166 |
) |
|
|
(139,946 |
) |
|
|
(22.0 |
%) |
|
|
(103,136 |
) |
|
|
5.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before income taxes |
|
$ |
218,691 |
|
|
$ |
209,883 |
|
|
|
4.2 |
% |
|
$ |
205,995 |
|
|
|
6.2 |
% |
| Financial ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Compensation and benefits |
|
|
58.4 |
% |
|
|
58.8 |
% |
|
|
(40 |
) |
|
|
58.8 |
% |
|
|
(40 |
) |
| Non-compensation operating expenses |
|
|
22.8 |
% |
|
|
22.2 |
% |
|
|
60 |
|
|
|
23.2 |
% |
|
|
(40 |
) |
| Income before income taxes |
|
|
18.8 |
% |
|
|
19.0 |
% |
|
|
(20 |
) |
|
|
18.0 |
% |
|
|
80 |
|
| Effective tax rate |
|
|
25.2 |
% |
|
|
24.9 |
% |
|
|
30 |
|
|
|
21.1 |
% |
|
|
410 |
|
|
|
|
| Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release |
|
Page 5 of 18 |
Consolidated Financial Information and Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
As of and for the Three Months Ended |
|
| (Unaudited, 000s, except per share data) |
|
3/31/2024 |
|
|
3/31/2023 |
|
|
% Change |
|
|
12/31/2023 |
|
|
% Change |
|
| Financial Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
38,258,280 |
|
|
$ |
38,597,653 |
|
|
|
(0.9 |
%) |
|
$ |
37,727,460 |
|
|
|
1.4 |
% |
| Total shareholders’ equity |
|
$ |
5,273,941 |
|
|
$ |
5,327,392 |
|
|
|
(1.0 |
%) |
|
$ |
5,294,431 |
|
|
|
(0.4 |
%) |
| Total common equity |
|
$ |
4,588,941 |
|
|
$ |
4,642,392 |
|
|
|
(1.2 |
%) |
|
$ |
4,609,431 |
|
|
|
(0.4 |
%) |
| Goodwill and intangible assets |
|
$ |
(1,515,588 |
) |
|
$ |
(1,512,400 |
) |
|
|
0.2 |
% |
|
$ |
(1,521,522 |
) |
|
|
(0.4 |
%) |
| DTL on goodwill and intangible assets |
|
$ |
74,841 |
|
|
$ |
63,455 |
|
|
|
17.9 |
% |
|
$ |
72,927 |
|
|
|
2.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible common equity |
|
$ |
3,148,194 |
|
|
$ |
3,193,447 |
|
|
|
(1.4 |
%) |
|
$ |
3,160,836 |
|
|
|
(0.4 |
%) |
| Preferred equity |
|
$ |
685,000 |
|
|
$ |
685,000 |
|
|
|
0.0 |
% |
|
$ |
685,000 |
|
|
|
0.0 |
% |
|
|
|
|
|
|
| Financial Metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Book value per common share (2) |
|
$ |
44.71 |
|
|
$ |
43.73 |
|
|
|
2.2 |
% |
|
$ |
45.61 |
|
|
|
(2.0 |
%) |
| Tangible book value per common share (2) |
|
$ |
30.67 |
|
|
$ |
30.08 |
|
|
|
2.0 |
% |
|
$ |
31.28 |
|
|
|
(2.0 |
%) |
| Return on common equity (3) |
|
|
13.5 |
% |
|
|
12.7 |
% |
|
|
|
|
|
|
13.4 |
% |
|
|
|
|
| Non-GAAP return on common equity (1)(3) |
|
|
14.3 |
% |
|
|
13.9 |
% |
|
|
|
|
|
|
14.6 |
% |
|
|
|
|
| Return on tangible common equity (4) |
|
|
19.7 |
% |
|
|
18.3 |
% |
|
|
|
|
|
|
19.6 |
% |
|
|
|
|
| Non-GAAP return on tangible common equity
(1)(4) |
|
|
20.9 |
% |
|
|
19.9 |
% |
|
|
|
|
|
|
21.3 |
% |
|
|
|
|
| Pre-tax margin on net revenues |
|
|
18.8 |
% |
|
|
19.0 |
% |
|
|
|
|
|
|
18.0 |
% |
|
|
|
|
| Non-GAAP
pre-tax margin on net revenues (1) |
|
|
19.8 |
% |
|
|
20.5 |
% |
|
|
|
|
|
|
19.4 |
% |
|
|
|
|
| Effective tax rate |
|
|
25.2 |
% |
|
|
24.9 |
% |
|
|
|
|
|
|
21.1 |
% |
|
|
|
|
| Non-GAAP effective tax rate (1) |
|
|
25.2 |
% |
|
|
24.9 |
% |
|
|
|
|
|
|
21.1 |
% |
|
|
|
|
|
|
|
| Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release |
|
Page 6 of 18 |
Regulatory Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
As of and for the Three Months Ended |
|
| (Unaudited, 000s) |
|
3/31/2024 |
|
|
3/31/2023 |
|
|
% Change |
|
|
12/31/2023 |
|
|
% Change |
|
| SF Regulatory Capital (5): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common equity tier 1 capital |
|
$ |
3,225,964 |
|
|
$ |
3,280,309 |
|
|
|
(1.7 |
%) |
|
$ |
3,230,965 |
|
|
|
(0.2 |
%) |
| Tier 1 capital |
|
$ |
3,910,964 |
|
|
$ |
3,965,309 |
|
|
|
(1.4 |
%) |
|
$ |
3,915,965 |
|
|
|
(0.1 |
%) |
| Risk-weighted assets |
|
$ |
22,588,330 |
|
|
$ |
23,533,555 |
|
|
|
(4.0 |
%) |
|
$ |
22,748,215 |
|
|
|
(0.7 |
%) |
| Common equity tier 1 capital ratio |
|
|
14.3 |
% |
|
|
13.9 |
% |
|
|
|
|
|
|
14.2 |
% |
|
|
|
|
| Tier 1 risk based capital ratio |
|
|
17.3 |
% |
|
|
16.8 |
% |
|
|
|
|
|
|
17.2 |
% |
|
|
|
|
| Tier 1 leverage capital ratio |
|
|
10.6 |
% |
|
|
10.9 |
% |
|
|
|
|
|
|
10.5 |
% |
|
|
|
|
| Stifel Bank & Trust Regulatory Capital (5): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common equity tier 1 capital |
|
$ |
1,242,565 |
|
|
$ |
1,590,068 |
|
|
|
(21.9 |
%) |
|
$ |
1,344,589 |
|
|
|
(7.6 |
%) |
| Tier 1 capital |
|
$ |
1,242,565 |
|
|
$ |
1,590,068 |
|
|
|
(21.9 |
%) |
|
$ |
1,344,589 |
|
|
|
(7.6 |
%) |
| Risk-weighted assets |
|
$ |
11,502,316 |
|
|
$ |
14,462,065 |
|
|
|
(20.5 |
%) |
|
$ |
11,365,270 |
|
|
|
1.2 |
% |
| Common equity tier 1 capital ratio |
|
|
10.8 |
% |
|
|
11.0 |
% |
|
|
|
|
|
|
11.8 |
% |
|
|
|
|
| Tier 1 risk based capital ratio |
|
|
10.8 |
% |
|
|
11.0 |
% |
|
|
|
|
|
|
11.8 |
% |
|
|
|
|
| Tier 1 leverage capital ratio |
|
|
7.1 |
% |
|
|
7.5 |
% |
|
|
|
|
|
|
7.3 |
% |
|
|
|
|
| Stifel Bank Regulatory Capital (5): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common equity tier 1 capital |
|
$ |
838,002 |
|
|
$ |
596,152 |
|
|
|
40.6 |
% |
|
$ |
788,811 |
|
|
|
6.2 |
% |
| Tier 1 capital |
|
$ |
838,002 |
|
|
$ |
596,152 |
|
|
|
40.6 |
% |
|
$ |
788,811 |
|
|
|
6.2 |
% |
| Risk-weighted assets |
|
$ |
5,663,726 |
|
|
$ |
4,548,287 |
|
|
|
24.5 |
% |
|
$ |
6,622,892 |
|
|
|
(14.5 |
%) |
| Common equity tier 1 capital ratio |
|
|
14.8 |
% |
|
|
13.1 |
% |
|
|
|
|
|
|
11.9 |
% |
|
|
|
|
| Tier 1 risk based capital ratio |
|
|
14.8 |
% |
|
|
13.1 |
% |
|
|
|
|
|
|
11.9 |
% |
|
|
|
|
| Tier 1 leverage capital ratio |
|
|
7.2 |
% |
|
|
7.5 |
% |
|
|
|
|
|
|
7.2 |
% |
|
|
|
|
| Stifel Net Capital (5): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net capital |
|
$ |
446,400 |
|
|
$ |
514,500 |
|
|
|
(13.2 |
%) |
|
$ |
457,900 |
|
|
|
(2.5 |
%) |
| Excess net capital |
|
$ |
421,100 |
|
|
$ |
491,500 |
|
|
|
(14.3 |
%) |
|
$ |
435,900 |
|
|
|
(3.4 |
%) |
|
|
|
| Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release |
|
Page 7 of 18 |
Global Wealth Management - Summary Results of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
| (Unaudited, 000s) |
|
3/31/2024 |
|
|
3/31/2023 |
|
|
% Change |
|
|
12/31/2023 |
|
|
% Change |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commissions |
|
$ |
121,217 |
|
|
$ |
110,191 |
|
|
|
10.0 |
% |
|
$ |
112,622 |
|
|
|
7.6 |
% |
| Principal transactions |
|
|
60,536 |
|
|
|
51,064 |
|
|
|
18.5 |
% |
|
|
56,849 |
|
|
|
6.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Transactional revenues |
|
|
181,753 |
|
|
|
161,255 |
|
|
|
12.7 |
% |
|
|
169,471 |
|
|
|
7.2 |
% |
| Asset management |
|
|
367,450 |
|
|
|
315,537 |
|
|
|
16.5 |
% |
|
|
330,498 |
|
|
|
11.2 |
% |
| Net interest |
|
|
236,269 |
|
|
|
281,932 |
|
|
|
(16.2 |
%) |
|
|
257,920 |
|
|
|
(8.4 |
%) |
| Investment banking (6) |
|
|
4,280 |
|
|
|
4,158 |
|
|
|
2.9 |
% |
|
|
4,562 |
|
|
|
(6.2 |
%) |
| Other income |
|
|
748 |
|
|
|
(5,696 |
) |
|
|
113.1 |
% |
|
|
3,577 |
|
|
|
(79.1 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net revenues |
|
|
790,500 |
|
|
|
757,186 |
|
|
|
4.4 |
% |
|
|
766,028 |
|
|
|
3.2 |
% |
| Non-interest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Compensation and benefits |
|
|
389,536 |
|
|
|
342,423 |
|
|
|
13.8 |
% |
|
|
359,376 |
|
|
|
8.4 |
% |
| Non-compensation operating expenses |
|
|
110,216 |
|
|
|
98,654 |
|
|
|
11.7 |
% |
|
|
105,292 |
|
|
|
4.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total non-interest expenses |
|
|
499,752 |
|
|
|
441,077 |
|
|
|
13.3 |
% |
|
|
464,668 |
|
|
|
7.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before income taxes |
|
$ |
290,748 |
|
|
$ |
316,109 |
|
|
|
(8.0 |
%) |
|
$ |
301,360 |
|
|
|
(3.5 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| As a percentage of net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Compensation and benefits |
|
|
49.3 |
% |
|
|
45.2 |
% |
|
|
410 |
|
|
|
46.9 |
% |
|
|
240 |
|
| Non-compensation operating expenses |
|
|
13.9 |
% |
|
|
13.1 |
% |
|
|
80 |
|
|
|
13.8 |
% |
|
|
10 |
|
| Income before income taxes |
|
|
36.8 |
% |
|
|
41.7 |
% |
|
|
(490 |
) |
|
|
39.3 |
% |
|
|
(250 |
) |
|
|
|
| Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release |
|
Page 8 of 18 |
Global Wealth Management - Statistical Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
As of and for the Three Months Ended |
|
| (Unaudited, 000s, except financial advisors) |
|
3/31/2024 |
|
|
3/31/2023 |
|
|
% Change |
|
|
12/31/2023 |
|
|
% Change |
|
| Financial advisors (including independent contractors) (7) |
|
|
2,356 |
|
|
|
2,350 |
|
|
|
0.3 |
% |
|
|
2,386 |
|
|
|
(1.3 |
%) |
| Total client assets |
|
$ |
467,697,000 |
|
|
$ |
405,988,000 |
|
|
|
15.2 |
% |
|
$ |
444,318,000 |
|
|
|
5.3 |
% |
| Fee-based client assets |
|
$ |
177,108,000 |
|
|
$ |
149,541,000 |
|
|
|
18.4 |
% |
|
$ |
165,301,000 |
|
|
|
7.1 |
% |
| Transactional assets |
|
$ |
290,589,000 |
|
|
$ |
256,447,000 |
|
|
|
13.3 |
% |
|
$ |
279,017,000 |
|
|
|
4.1 |
% |
| Secured client lending (8) |
|
$ |
3,353,000 |
|
|
$ |
3,393,000 |
|
|
|
(1.2 |
%) |
|
$ |
3,064,000 |
|
|
|
9.4 |
% |
| Asset Management Revenue (000s): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Private Client Group (9) |
|
$ |
299,027 |
|
|
$ |
259,491 |
|
|
|
15.2 |
% |
|
$ |
275,405 |
|
|
|
8.6 |
% |
| Asset Management |
|
|
36,205 |
|
|
|
32,241 |
|
|
|
12.3 |
% |
|
|
33,938 |
|
|
|
6.7 |
% |
| Third-party Bank Sweep Program |
|
|
18,314 |
|
|
|
11,261 |
|
|
|
62.6 |
% |
|
|
8,821 |
|
|
|
107.6 |
% |
| Other (10) |
|
|
13,930 |
|
|
|
12,576 |
|
|
|
10.8 |
% |
|
|
12,372 |
|
|
|
12.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total asset management revenues |
|
$ |
367,476 |
|
|
$ |
315,569 |
|
|
|
16.4 |
% |
|
$ |
330,536 |
|
|
|
11.2 |
% |
| Fee-based Assets (millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Private Client Group (9) |
|
$ |
155,144 |
|
|
$ |
131,483 |
|
|
|
18.0 |
% |
|
$ |
145,513 |
|
|
|
6.6 |
% |
| Asset Management |
|
|
39,214 |
|
|
|
33,409 |
|
|
|
17.4 |
% |
|
|
36,085 |
|
|
|
8.7 |
% |
| Elimination (11) |
|
|
(17,250 |
) |
|
|
(15,351 |
) |
|
|
12.4 |
% |
|
|
(16,297 |
) |
|
|
5.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total fee-based assets |
|
$ |
177,108 |
|
|
$ |
149,541 |
|
|
|
18.4 |
% |
|
$ |
165,301 |
|
|
|
7.1 |
% |
| Third-party Bank Sweep Program |
|
$ |
1,172 |
|
|
$ |
915 |
|
|
|
28.1 |
% |
|
$ |
2,044 |
|
|
|
(42.7 |
%) |
| ROA (bps) (12): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Private Client Group (9) |
|
|
82.2 |
|
|
|
82.3 |
|
|
|
|
|
|
|
83.0 |
|
|
|
|
|
| Asset Management |
|
|
36.9 |
|
|
|
38.6 |
|
|
|
|
|
|
|
37.6 |
|
|
|
|
|
| Third-party Bank Sweep Program |
|
|
478.5 |
|
|
|
303.9 |
|
|
|
|
|
|
|
451.2 |
|
|
|
|
|
| Stifel Bancorp Deposits (millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Smart Rate Deposits |
|
$ |
15,561 |
|
|
$ |
10,778 |
|
|
|
44.4 |
% |
|
$ |
14,465 |
|
|
|
7.6 |
% |
| Sweep Deposits |
|
|
9,771 |
|
|
|
14,057 |
|
|
|
(30.5 |
%) |
|
|
9,642 |
|
|
|
1.3 |
% |
| Direct Wealth Management Deposits at Stifel Bancorp |
|
|
176 |
|
|
|
189 |
|
|
|
(6.9 |
%) |
|
|
402 |
|
|
|
(56.2 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Stifel Bancorp Wealth Management Deposits |
|
|
25,508 |
|
|
|
25,024 |
|
|
|
1.9 |
% |
|
|
24,509 |
|
|
|
4.1 |
% |
| Other Bank Deposits (13) |
|
|
2,046 |
|
|
|
3,301 |
|
|
|
(38.0 |
%) |
|
|
2,826 |
|
|
|
(27.6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Stifel Bancorp Deposits |
|
$ |
27,554 |
|
|
$ |
28,325 |
|
|
|
(2.7 |
%) |
|
$ |
27,335 |
|
|
|
0.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Short-term Treasuries (millions) (14) |
|
$ |
7,698 |
|
|
$ |
6,617 |
|
|
|
16.3 |
% |
|
$ |
7,855 |
|
|
|
(2.0 |
%) |
| Wealth Management Cash (millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stifel Bancorp Wealth Management Deposits |
|
$ |
25,508 |
|
|
$ |
25,024 |
|
|
|
1.9 |
% |
|
$ |
24,509 |
|
|
|
4.1 |
% |
| Third-party Bank Sweep Program |
|
|
1,172 |
|
|
|
915 |
|
|
|
28.1 |
% |
|
|
2,044 |
|
|
|
(42.7 |
%) |
| Other Sweep and Third-party Bank Cash |
|
|
620 |
|
|
|
252 |
|
|
|
146.0 |
% |
|
|
324 |
|
|
|
91.4 |
% |
| Money Market Mutual Funds |
|
|
9,879 |
|
|
|
7,434 |
|
|
|
32.9 |
% |
|
|
9,374 |
|
|
|
5.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Wealth Management Cash |
|
$ |
37,179 |
|
|
$ |
33,625 |
|
|
|
10.6 |
% |
|
$ |
36,251 |
|
|
|
2.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release |
|
Page 9 of 18 |
Institutional Group - Summary Results of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
| (Unaudited, 000s) |
|
3/31/2024 |
|
|
3/31/2023 |
|
|
% Change |
|
|
12/31/2023 |
|
|
% Change |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commissions |
|
$ |
64,259 |
|
|
$ |
59,359 |
|
|
|
8.3 |
% |
|
$ |
60,992 |
|
|
|
5.4 |
% |
| Principal transactions |
|
|
78,478 |
|
|
|
64,458 |
|
|
|
21.8 |
% |
|
|
97,528 |
|
|
|
(19.5 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Transactional revenues |
|
|
142,737 |
|
|
|
123,817 |
|
|
|
15.3 |
% |
|
|
158,520 |
|
|
|
(10.0 |
%) |
| Capital raising |
|
|
90,417 |
|
|
|
56,658 |
|
|
|
59.6 |
% |
|
|
71,724 |
|
|
|
26.1 |
% |
| Advisory |
|
|
119,252 |
|
|
|
151,063 |
|
|
|
(21.1 |
%) |
|
|
129,378 |
|
|
|
(7.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment banking |
|
|
209,669 |
|
|
|
207,721 |
|
|
|
0.9 |
% |
|
|
201,102 |
|
|
|
4.3 |
% |
| Other income (15) |
|
|
(1,030 |
) |
|
|
1,075 |
|
|
|
(195.8 |
%) |
|
|
(330 |
) |
|
|
(212.1 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net revenues |
|
|
351,376 |
|
|
|
332,613 |
|
|
|
5.6 |
% |
|
|
359,292 |
|
|
|
(2.2 |
%) |
| Non-interest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Compensation and benefits |
|
|
215,749 |
|
|
|
205,905 |
|
|
|
4.8 |
% |
|
|
248,970 |
|
|
|
(13.3 |
%) |
| Non-compensation operating expenses |
|
|
98,518 |
|
|
|
92,988 |
|
|
|
5.9 |
% |
|
|
102,551 |
|
|
|
(3.9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total non-interest expenses |
|
|
314,267 |
|
|
|
298,893 |
|
|
|
5.1 |
% |
|
|
351,521 |
|
|
|
(10.6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before income taxes |
|
$ |
37,109 |
|
|
$ |
33,720 |
|
|
|
10.1 |
% |
|
$ |
7,771 |
|
|
|
377.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| As a percentage of net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Compensation and benefits |
|
|
61.4 |
% |
|
|
61.9 |
% |
|
|
(50 |
) |
|
|
69.3 |
% |
|
|
(790 |
) |
| Non-compensation operating expenses |
|
|
28.0 |
% |
|
|
28.0 |
% |
|
|
— |
|
|
|
28.5 |
% |
|
|
(50 |
) |
| Income before income taxes |
|
|
10.6 |
% |
|
|
10.1 |
% |
|
|
50 |
|
|
|
2.2 |
% |
|
|
840 |
|
|
|
|
| Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release |
|
Page 10 of 18 |
Stifel Bancorp - Financial Information and Credit Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Unaudited, 000s) |
|
3/31/2024 |
|
|
3/31/2023 |
|
|
% Change |
|
|
12/31/2023 |
|
|
% Change |
|
| Stifel Bancorp Financial Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
29,800,815 |
|
|
$ |
30,701,371 |
|
|
|
(2.9 |
%) |
|
$ |
29,722,320 |
|
|
|
0.3 |
% |
| Total shareholder’s equity |
|
$ |
2,062,271 |
|
|
$ |
2,199,821 |
|
|
|
(6.3 |
%) |
|
$ |
2,154,839 |
|
|
|
(4.3 |
%) |
| Total loans, net (includes loans held for sale) |
|
$ |
19,484,389 |
|
|
$ |
20,935,133 |
|
|
|
(6.9 |
%) |
|
$ |
19,729,804 |
|
|
|
(1.2 |
%) |
| Residential real estate |
|
|
8,096,975 |
|
|
|
7,494,788 |
|
|
|
8.0 |
% |
|
|
8,047,647 |
|
|
|
0.6 |
% |
| Fund banking |
|
|
3,129,642 |
|
|
|
4,623,423 |
|
|
|
(32.3 |
%) |
|
|
3,633,126 |
|
|
|
(13.9 |
%) |
| Commercial and industrial |
|
|
3,541,770 |
|
|
|
4,755,664 |
|
|
|
(25.5 |
%) |
|
|
3,566,987 |
|
|
|
(0.7 |
%) |
| Securities-based loans |
|
|
2,302,250 |
|
|
|
2,558,343 |
|
|
|
(10.0 |
%) |
|
|
2,306,455 |
|
|
|
(0.2 |
%) |
| Construction and land |
|
|
1,167,300 |
|
|
|
644,800 |
|
|
|
81.0 |
% |
|
|
1,034,370 |
|
|
|
12.9 |
% |
| Commercial real estate |
|
|
655,355 |
|
|
|
663,325 |
|
|
|
(1.2 |
%) |
|
|
660,631 |
|
|
|
(0.8 |
%) |
| Other |
|
|
198,568 |
|
|
|
159,101 |
|
|
|
24.8 |
% |
|
|
192,251 |
|
|
|
3.3 |
% |
| Loans held for sale |
|
|
534,593 |
|
|
|
225,365 |
|
|
|
137.2 |
% |
|
|
423,999 |
|
|
|
26.1 |
% |
| Investment securities |
|
$ |
7,292,490 |
|
|
$ |
7,607,385 |
|
|
|
(4.1 |
%) |
|
$ |
7,439,109 |
|
|
|
(2.0 |
%) |
| Available-for-sale
securities, at fair value |
|
|
1,499,982 |
|
|
|
1,624,458 |
|
|
|
(7.7 |
%) |
|
|
1,551,686 |
|
|
|
(3.3 |
%) |
| Held-to-maturity
securities, at amortized cost |
|
|
5,792,508 |
|
|
|
5,982,927 |
|
|
|
(3.2 |
%) |
|
|
5,887,423 |
|
|
|
(1.6 |
%) |
| Unrealized losses on
available-for-sale securities |
|
|
(187,163 |
) |
|
|
(196,621 |
) |
|
|
(4.8 |
%) |
|
|
(175,943 |
) |
|
|
6.4 |
% |
| Total deposits |
|
$ |
27,554,411 |
|
|
$ |
28,325,327 |
|
|
|
(2.7 |
%) |
|
$ |
27,334,579 |
|
|
|
0.8 |
% |
| Demand deposits (interest-bearing) |
|
|
27,357,692 |
|
|
|
27,862,336 |
|
|
|
(1.8 |
%) |
|
|
27,111,072 |
|
|
|
0.9 |
% |
| Demand deposits (non-interest-bearing) |
|
|
196,717 |
|
|
|
456,091 |
|
|
|
(56.9 |
%) |
|
|
223,505 |
|
|
|
(12.0 |
%) |
| Certificates of deposit |
|
|
2 |
|
|
|
6,900 |
|
|
|
nm |
|
|
|
2 |
|
|
|
0.0 |
% |
|
|
|
|
|
|
| Credit Metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Allowance for credit losses |
|
$ |
163,936 |
|
|
$ |
152,906 |
|
|
|
7.2 |
% |
|
$ |
161,605 |
|
|
|
1.4 |
% |
| Allowance as a percentage of retained loans |
|
|
0.86 |
% |
|
|
0.73 |
% |
|
|
|
|
|
|
0.83 |
% |
|
|
|
|
| Net charge-offs as a percentage of average loans |
|
|
0.01 |
% |
|
|
0.00 |
% |
|
|
|
|
|
|
0.04 |
% |
|
|
|
|
| Total nonperforming assets |
|
$ |
59,429 |
|
|
$ |
10,749 |
|
|
|
452.9 |
% |
|
$ |
45,456 |
|
|
|
30.7 |
% |
| Nonperforming assets as a percentage of total assets |
|
|
0.20 |
% |
|
|
0.04 |
% |
|
|
|
|
|
|
0.15 |
% |
|
|
|
|
|
|
|
| Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release |
|
Page 11 of 18 |
Stifel Bancorp - Loan and Investment Portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Unaudited, millions) |
|
3/31/2024 |
|
|
% of Total
Portfolio |
|
|
|
|
|
|
|
|
|
| Loan Portfolio |
|
|
|
|
|
|
|
|
|
Commercial Portfolio by Major Sector |
|
|
|
|
|
|
|
|
| Residential real estate |
|
$ |
8,097 |
|
|
|
32 |
% |
|
Industrials |
|
$ |
873 |
|
|
|
25 |
% |
| Securities-based loans |
|
|
2,302 |
|
|
|
9 |
% |
|
Financials |
|
|
860 |
|
|
|
24 |
% |
| Home equity lines of credit and other |
|
|
199 |
|
|
|
1 |
% |
|
Information technology |
|
|
541 |
|
|
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total consumer |
|
|
10,598 |
|
|
|
42 |
% |
|
Consumer discretionary |
|
|
389 |
|
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fund banking |
|
|
3,130 |
|
|
|
12 |
% |
|
REITs |
|
|
227 |
|
|
|
6 |
% |
| Commercial and industrial |
|
|
3,542 |
|
|
|
14 |
% |
|
Materials |
|
|
167 |
|
|
|
5 |
% |
| Construction and land |
|
|
1,167 |
|
|
|
5 |
% |
|
Healthcare |
|
|
164 |
|
|
|
5 |
% |
| Commercial real estate |
|
|
655 |
|
|
|
3 |
% |
|
Hotel, leisure, restaurants |
|
|
132 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total commercial |
|
|
8,494 |
|
|
|
34 |
% |
|
Communication services |
|
|
80 |
|
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total loan portfolio |
|
|
19,092 |
|
|
|
76 |
% |
|
Consumer staples |
|
|
72 |
|
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unfunded commitments |
|
|
5,961 |
|
|
|
24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
25,053 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLO by Major Sector |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Healthcare & pharmaceuticals |
|
$ |
568 |
|
|
|
10 |
% |
| Investment Portfolio |
|
|
|
|
|
|
|
|
|
High tech industries |
|
|
554 |
|
|
|
10 |
% |
| CLO |
|
$ |
5,758 |
|
|
|
77 |
% |
|
Banking, finance, insurance, & real estate |
|
|
511 |
|
|
|
9 |
% |
| Agency MBS |
|
|
840 |
|
|
|
11 |
% |
|
Services: business |
|
|
511 |
|
|
|
9 |
% |
| Corporate bonds |
|
|
601 |
|
|
|
8 |
% |
|
Construction & building |
|
|
249 |
|
|
|
4 |
% |
| SBA |
|
|
116 |
|
|
|
2 |
% |
|
Chemicals, plastics, & rubber |
|
|
242 |
|
|
|
4 |
% |
| Student loan ARS |
|
|
92 |
|
|
|
1 |
% |
|
Hotel, gaming, & leisure |
|
|
239 |
|
|
|
4 |
% |
| CMBS |
|
|
70 |
|
|
|
1 |
% |
|
Media: broadcasting & subscription |
|
|
236 |
|
|
|
4 |
% |
| Other |
|
|
3 |
|
|
|
0 |
% |
|
Services: consumer |
|
|
235 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Portfolio |
|
$ |
7,480 |
|
|
|
100 |
% |
|
Telecommunications |
|
|
227 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release |
|
Page 12 of 18 |
Loans and Lending Commitments - Allowance for Credit Losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
March 31, 2024 |
|
|
|
|
|
|
|
| (Unaudited, 000s) |
|
Loans and Lending
Commitments |
|
|
ACL |
|
|
ACL % |
|
|
Q1 Provision (16) |
|
| Residential real estate |
|
$ |
8,096,975 |
|
|
$ |
12,507 |
|
|
|
0.15 |
% |
|
$ |
(1,348 |
) |
| Fund banking |
|
|
3,129,642 |
|
|
|
8,763 |
|
|
|
0.28 |
% |
|
|
(1,410 |
) |
| Commercial and industrial |
|
|
3,541,770 |
|
|
|
65,887 |
|
|
|
1.86 |
% |
|
|
1,447 |
|
| Securities-based loans |
|
|
2,302,250 |
|
|
|
3,068 |
|
|
|
0.13 |
% |
|
|
33 |
|
| Construction and land |
|
|
1,167,300 |
|
|
|
18,589 |
|
|
|
1.59 |
% |
|
|
6,772 |
|
| Commercial real estate |
|
|
655,355 |
|
|
|
20,689 |
|
|
|
3.16 |
% |
|
|
(697 |
) |
| Other |
|
|
198,568 |
|
|
|
710 |
|
|
|
0.36 |
% |
|
|
(239 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans held for investment, gross |
|
|
19,091,860 |
|
|
|
130,213 |
|
|
|
0.68 |
% |
|
|
4,558 |
|
| Loans held for sale |
|
|
534,593 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total loans, gross |
|
|
19,626,453 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lending-related commitments (unfunded) |
|
|
5,961,182 |
|
|
|
33,723 |
|
|
|
0.57 |
% |
|
|
410 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans and lending-related commitments |
|
$ |
25,587,635 |
|
|
$ |
163,936 |
|
|
|
|
|
|
$ |
4,968 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release |
|
Page 13 of 18 |
Consolidated Net Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
| |
|
March 31, 2024 |
|
|
March 31, 2023 |
|
|
December 31, 2023 |
|
| (Unaudited, millions) |
|
Average
balance |
|
|
Interest
income/expense |
|
|
Average
interest
rate |
|
|
Average
balance |
|
|
Interest
income/expense |
|
|
Average
interest
rate |
|
|
Average
balance |
|
|
Interest
income/expense |
|
|
Average
interest
rate |
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and federal funds sold |
|
$ |
4,060.3 |
|
|
$ |
54.3 |
|
|
|
5.35 |
% |
|
$ |
1,989.5 |
|
|
$ |
22.7 |
|
|
|
4.57 |
% |
|
$ |
2,956.9 |
|
|
$ |
40.1 |
|
|
|
5.42 |
% |
| Financial instruments owned |
|
|
911.7 |
|
|
|
4.9 |
|
|
|
2.13 |
% |
|
|
877.7 |
|
|
|
3.7 |
|
|
|
1.70 |
% |
|
|
962.2 |
|
|
|
4.0 |
|
|
|
1.65 |
% |
| Margin balances |
|
|
699.8 |
|
|
|
14.2 |
|
|
|
8.12 |
% |
|
|
831.2 |
|
|
|
14.9 |
|
|
|
7.16 |
% |
|
|
750.0 |
|
|
|
15.3 |
|
|
|
8.14 |
% |
| Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Asset-backed securities |
|
|
6,011.1 |
|
|
|
109.1 |
|
|
|
7.26 |
% |
|
|
6,202.4 |
|
|
|
98.8 |
|
|
|
6.37 |
% |
|
|
6,079.2 |
|
|
|
112.4 |
|
|
|
7.39 |
% |
| Mortgage-backed securities |
|
|
916.5 |
|
|
|
5.2 |
|
|
|
2.29 |
% |
|
|
986.6 |
|
|
|
5.4 |
|
|
|
2.18 |
% |
|
|
935.5 |
|
|
|
5.3 |
|
|
|
2.27 |
% |
| Corporate fixed income securities |
|
|
606.5 |
|
|
|
4.2 |
|
|
|
2.76 |
% |
|
|
637.5 |
|
|
|
4.1 |
|
|
|
2.61 |
% |
|
|
617.1 |
|
|
|
4.3 |
|
|
|
2.78 |
% |
| Other |
|
|
4.7 |
|
|
|
— |
|
|
|
2.55 |
% |
|
|
4.7 |
|
|
|
— |
|
|
|
2.55 |
% |
|
|
4.7 |
|
|
|
— |
|
|
|
2.55 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total investments |
|
|
7,538.8 |
|
|
|
118.5 |
|
|
|
6.29 |
% |
|
|
7,831.2 |
|
|
|
108.3 |
|
|
|
5.53 |
% |
|
|
7,636.5 |
|
|
|
122.0 |
|
|
|
6.39 |
% |
| Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Residential real estate |
|
|
8,060.6 |
|
|
|
67.8 |
|
|
|
3.37 |
% |
|
|
7,446.1 |
|
|
|
53.5 |
|
|
|
2.87 |
% |
|
|
8,027.0 |
|
|
|
69.4 |
|
|
|
3.46 |
% |
| Commercial and industrial |
|
|
3,527.5 |
|
|
|
81.3 |
|
|
|
9.21 |
% |
|
|
4,816.3 |
|
|
|
94.3 |
|
|
|
7.83 |
% |
|
|
4,073.9 |
|
|
|
90.5 |
|
|
|
8.89 |
% |
| Fund banking |
|
|
3,418.8 |
|
|
|
67.8 |
|
|
|
7.94 |
% |
|
|
4,396.4 |
|
|
|
76.3 |
|
|
|
6.94 |
% |
|
|
4,076.5 |
|
|
|
80.9 |
|
|
|
7.94 |
% |
| Securities-based loans |
|
|
2,297.1 |
|
|
|
41.6 |
|
|
|
7.25 |
% |
|
|
2,638.0 |
|
|
|
42.5 |
|
|
|
6.44 |
% |
|
|
2,318.7 |
|
|
|
42.5 |
|
|
|
7.33 |
% |
| Commercial real estate |
|
|
658.3 |
|
|
|
11.9 |
|
|
|
7.20 |
% |
|
|
666.8 |
|
|
|
10.9 |
|
|
|
6.57 |
% |
|
|
659.3 |
|
|
|
12.3 |
|
|
|
7.49 |
% |
| Construction and land |
|
|
1,099.9 |
|
|
|
22.9 |
|
|
|
8.34 |
% |
|
|
612.6 |
|
|
|
11.5 |
|
|
|
7.49 |
% |
|
|
942.8 |
|
|
|
20.2 |
|
|
|
8.57 |
% |
| Loans held for sale |
|
|
489.3 |
|
|
|
9.0 |
|
|
|
7.36 |
% |
|
|
206.3 |
|
|
|
3.4 |
|
|
|
6.53 |
% |
|
|
254.0 |
|
|
|
4.7 |
|
|
|
7.40 |
% |
| Other |
|
|
191.7 |
|
|
|
3.8 |
|
|
|
7.92 |
% |
|
|
153.9 |
|
|
|
2.7 |
|
|
|
7.12 |
% |
|
|
186.9 |
|
|
|
3.7 |
|
|
|
7.90 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total loans |
|
|
19,743.2 |
|
|
|
306.1 |
|
|
|
6.20 |
% |
|
|
20,936.4 |
|
|
|
295.1 |
|
|
|
5.64 |
% |
|
|
20,539.1 |
|
|
|
324.2 |
|
|
|
6.31 |
% |
| Other interest-bearing assets |
|
|
755.0 |
|
|
|
8.8 |
|
|
|
4.63 |
% |
|
|
797.3 |
|
|
|
6.9 |
|
|
|
3.45 |
% |
|
|
812.3 |
|
|
|
10.6 |
|
|
|
5.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total interest-bearing assets/ interest income |
|
|
33,708.8 |
|
|
|
506.8 |
|
|
|
6.01 |
% |
|
|
33,263.3 |
|
|
|
451.6 |
|
|
|
5.43 |
% |
|
|
33,657.0 |
|
|
|
516.2 |
|
|
|
6.13 |
% |
| Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Senior notes |
|
|
1,115.7 |
|
|
|
12.5 |
|
|
|
4.48 |
% |
|
|
1,114.6 |
|
|
|
12.5 |
|
|
|
4.49 |
% |
|
|
1,115.5 |
|
|
|
12.5 |
|
|
|
4.48 |
% |
| Deposits |
|
|
27,607.8 |
|
|
|
230.1 |
|
|
|
3.33 |
% |
|
|
27,138.0 |
|
|
|
137.3 |
|
|
|
2.02 |
% |
|
|
27,457.7 |
|
|
|
218.0 |
|
|
|
3.18 |
% |
| Other interest-bearing liabilities |
|
|
1,385.8 |
|
|
|
12.1 |
|
|
|
3.49 |
% |
|
|
1,170.5 |
|
|
|
5.2 |
|
|
|
1.78 |
% |
|
|
1,384.6 |
|
|
|
13.2 |
|
|
|
3.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total interest-bearing liabilities/ interest expense |
|
$ |
30,109.3 |
|
|
|
254.7 |
|
|
|
3.38 |
% |
|
$ |
29,423.1 |
|
|
|
155.0 |
|
|
|
2.11 |
% |
|
$ |
29,957.8 |
|
|
|
243.7 |
|
|
|
3.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income/margin |
|
|
|
|
|
$ |
252.1 |
|
|
|
2.99 |
% |
|
|
|
|
|
$ |
296.6 |
|
|
|
3.57 |
% |
|
|
|
|
|
$ |
272.5 |
|
|
|
3.24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release |
|
Page 14 of 18 |
Stifel Bancorp Net Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
| |
|
March 31, 2024 |
|
|
March 31, 2023 |
|
|
December 31, 2023 |
|
| (Unaudited, millions) |
|
Average
balance |
|
|
Interest
income/expense |
|
|
Average
interest
rate |
|
|
Average
balance |
|
|
Interest
income/expense |
|
|
Average
interest
rate |
|
|
Average
balance |
|
|
Interest
income/expense |
|
|
Average
interest
rate |
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and federal funds sold |
|
$ |
2,845.9 |
|
|
$ |
39.6 |
|
|
|
5.56 |
% |
|
$ |
916.1 |
|
|
$ |
11.2 |
|
|
|
4.91 |
% |
|
$ |
1,841.8 |
|
|
$ |
26.4 |
|
|
|
5.73 |
% |
| Investments |
|
|
7,538.8 |
|
|
|
118.5 |
|
|
|
6.29 |
% |
|
|
7,831.2 |
|
|
|
108.3 |
|
|
|
5.53 |
% |
|
|
7,636.5 |
|
|
|
122.0 |
|
|
|
6.39 |
% |
| Loans |
|
|
19,743.2 |
|
|
|
306.1 |
|
|
|
6.20 |
% |
|
|
20,936.4 |
|
|
|
295.1 |
|
|
|
5.64 |
% |
|
|
20,539.1 |
|
|
|
324.2 |
|
|
|
6.31 |
% |
| Other interest-bearing assets |
|
|
62.7 |
|
|
|
0.8 |
|
|
|
4.71 |
% |
|
|
57.4 |
|
|
|
0.6 |
|
|
|
3.86 |
% |
|
|
64.7 |
|
|
|
0.7 |
|
|
|
4.55 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total interest-bearing assets/ interest income |
|
$ |
30,190.6 |
|
|
$ |
465.0 |
|
|
|
6.16 |
% |
|
$ |
29,741.1 |
|
|
$ |
415.2 |
|
|
|
5.58 |
% |
|
$ |
30,082.1 |
|
|
$ |
473.3 |
|
|
|
6.29 |
% |
| Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deposits |
|
$ |
27,607.8 |
|
|
$ |
230.1 |
|
|
|
3.33 |
% |
|
$ |
27,138.0 |
|
|
$ |
137.3 |
|
|
|
2.02 |
% |
|
$ |
27,457.7 |
|
|
$ |
218.0 |
|
|
|
3.18 |
% |
| Other interest-bearing liabilities |
|
|
55.1 |
|
|
|
1.0 |
|
|
|
7.61 |
% |
|
|
6.4 |
|
|
|
0.1 |
|
|
|
6.62 |
% |
|
|
73.2 |
|
|
|
1.4 |
|
|
|
7.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total interest-bearing liabilities/ interest expense |
|
$ |
27,662.9 |
|
|
|
231.1 |
|
|
|
3.34 |
% |
|
$ |
27,144.4 |
|
|
|
137.4 |
|
|
|
2.02 |
% |
|
$ |
27,530.9 |
|
|
|
219.4 |
|
|
|
3.19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income/margin |
|
|
|
|
|
$ |
233.9 |
|
|
|
3.10 |
% |
|
|
|
|
|
$ |
277.8 |
|
|
|
3.74 |
% |
|
|
|
|
|
$ |
253.9 |
|
|
|
3.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release |
|
Page 15 of 18 |
GAAP to Core Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
| (Unaudited, 000s) |
|
3/31/2024 |
|
|
3/31/2023 |
|
|
Change |
|
|
12/31/2023 |
|
|
Change |
|
| GAAP net revenues |
|
$ |
1,163,038 |
|
|
$ |
1,106,793 |
|
|
|
|
|
|
$ |
1,146,379 |
|
|
|
|
|
| Non-GAAP adjustments |
|
|
— |
|
|
|
(3 |
) |
|
|
|
|
|
|
40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP net revenues |
|
|
1,163,038 |
|
|
|
1,106,790 |
|
|
|
|
|
|
|
1,146,419 |
|
|
|
|
|
|
|
|
|
|
|
| GAAP compensation and benefits expense |
|
|
679,695 |
|
|
|
651,190 |
|
|
|
|
|
|
|
674,437 |
|
|
|
|
|
| Merger-related (17) |
|
|
(5,533 |
) |
|
|
(9,253 |
) |
|
|
|
|
|
|
(9,203 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP compensation and benefits expense |
|
|
674,162 |
|
|
|
641,937 |
|
|
|
|
|
|
|
665,234 |
|
|
|
|
|
|
|
|
|
|
|
| GAAP non-compensation operating expenses |
|
|
264,652 |
|
|
|
245,720 |
|
|
|
|
|
|
|
265,947 |
|
|
|
|
|
| Merger-related (17) |
|
|
(6,621 |
) |
|
|
(8,136 |
) |
|
|
|
|
|
|
(7,678 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP
non-compensation operating expenses |
|
|
258,031 |
|
|
|
237,584 |
|
|
|
|
|
|
|
258,269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total merger-related adjustments |
|
|
(12,154 |
) |
|
|
(17,386 |
) |
|
|
|
|
|
|
(16,921 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP provision for income taxes |
|
|
55,116 |
|
|
|
52,344 |
|
|
|
|
|
|
|
43,511 |
|
|
|
|
|
| Merger-related and other (17) |
|
|
3,063 |
|
|
|
4,337 |
|
|
|
|
|
|
|
3,498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP provision for income taxes |
|
|
58,179 |
|
|
|
56,681 |
|
|
|
|
|
|
|
47,009 |
|
|
|
|
|
|
|
|
|
|
|
| Financial ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Compensation and benefits |
|
|
58.0 |
% |
|
|
58.0 |
% |
|
|
— |
|
|
|
58.0 |
% |
|
|
— |
|
| Non-compensation operating expenses |
|
|
22.2 |
% |
|
|
21.5 |
% |
|
|
70 |
|
|
|
22.6 |
% |
|
|
(40 |
) |
| Income before income taxes |
|
|
19.8 |
% |
|
|
20.5 |
% |
|
|
(70 |
) |
|
|
19.4 |
% |
|
|
40 |
|
| Effective tax rate |
|
|
25.2 |
% |
|
|
24.9 |
% |
|
|
30 |
|
|
|
21.1 |
% |
|
|
410 |
|
|
|
|
| Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release |
|
Page 16 of 18 |
Footnotes
| (1) |
Please refer to the GAAP to Core Reconciliation for a reconciliation of the Company’s GAAP results to
these non-GAAP measures. |
| (2) |
Book value per common share represents shareholders’ equity (excluding preferred stock) divided by period
end common shares outstanding. Tangible book value per share represents tangible common shareholders’ equity (defined below) divided by period end common shares outstanding. |
| (3) |
Return on average common equity (“ROCE”) is calculated by dividing annualized net income applicable
to common shareholders by average common shareholders’ equity or, in the case of non-GAAP ROCE, calculated by dividing non-GAAP net income applicable to commons
shareholders by average common shareholders’ equity. |
| (4) |
Return on average tangible common equity (“ROTCE”) is calculated by dividing annualized net income
applicable to common shareholders by average tangible common equity or, in the case of non-GAAP ROTCE, calculated by dividing non-GAAP net income applicable to common
shareholders by average tangible common equity. Tangible common equity, also a non-GAAP financial measure, equals total common shareholders’ equity less goodwill and identifiable intangible assets and the
deferred taxes on goodwill and intangible assets. Average deferred taxes on goodwill and intangible assets was $73.9 million, $62.3 million, and $71.1 million, as of March 31, 2024 and 2023, and December 31, 2023,
respectively. |
| (5) |
Regulatory capital amounts and ratios are estimates as of the date of the Company’s earnings release,
April 24, 2024. |
| (6) |
Includes capital raising and advisory revenues. |
| (7) |
Includes independent contractors of 114, 102, and 108 as of March 31, 2024 and 2023, and December 31,
2023, respectively. |
| (8) |
Includes client margin balances held by the Company’s broker-dealer subsidiaries and securities-based
loans held at the Company’s bank subsidiaries. |
| (9) |
Includes Private Client Group and Trust Business. |
| (10) |
Includes fund networking fees, retirement fees, transaction/handling fees, and ACAT fees.
|
| (11) |
Asset management assets managed in Private Client Group or Trust accounts. |
| (12) |
Return on assets (ROA) is calculated based on prior period-end balances
for Private Client Group, period-end balances for Asset Management, and average daily balances for Individual Program Banks. Prior to Q4 2023, ROA for Individual Program Banks was calculated on average
quarterly balances. Prior periods have not been restated to reflect the change as the differences are immaterial. |
| (13) |
During the first quarter of 2024, the Company began sweeping certain commercial treasury deposits to
third-party banks. The March 31, 2024 balance excludes $1.3 billion of commercial treasury deposits sitting at third-party banks. |
| (14) |
Represents client assets in Treasury Securities with maturities of 52 weeks or less. |
| (15) |
Includes net interest, asset management, and other income. |
| (16) |
Provision for credit losses for the three months ended March 31, 2024 includes a reserve of
$0.3 million related to employee retention awards. |
| (17) |
Primarily related to charges attributable to integration-related activities, signing bonuses, amortization of
restricted stock awards, debentures, and promissory notes issued as retention, additional earn-out expense, and amortization of intangible assets acquired. These costs were directly related to acquisitions of
certain businesses and are not representative of the costs of running the Company’s on-going business. |
|
|
|
| Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release |
|
Page 17 of 18 |
Disclaimer and Legal Notice
Forward-Looking Statements
This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve
significant risks, assumptions, and uncertainties, including statements relating to the market opportunity and future business prospects of Stifel Financial Corp., as well as Stifel, Nicolaus & Company, Incorporated and its subsidiaries
(collectively, “SF” or the “Company”). These statements can be identified by the use of the words “may,” “will,” “should,” “could,” “would,” “plan,”
“potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” and similar expressions.
All statements not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements are subject to
risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. For information about the risks and important factors that could affect the Company’s future results, financial
condition and liquidity, see “Risk Factors” in Part I of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Forward-looking statements speak only as to the date
they are made. The Company disclaims any intent or obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
Use of Non-GAAP Financial Measures
The Company prepares its Consolidated Financial Statements using accounting principles generally accepted in the United States (U.S. GAAP). The Company may
disclose certain “non-GAAP financial measures” in the course of its earnings releases, earnings conference calls, financial presentations and otherwise. The Securities and Exchange Commission defines
a “non-GAAP financial measure” as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments that effectively exclude, or
include, amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. Non-GAAP financial measures disclosed by the Company are provided as additional information to
analysts, investors and other stakeholders in order to provide them with greater transparency about, or an alternative method for assessing the Company’s financial condition or operating results. These measures are not in accordance with, or a
substitute for U.S. GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever the Company refers to a non-GAAP
financial measure, it will also define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the
non-GAAP financial measure it references and such comparable U.S. GAAP financial measure.
Legal Notice
This Financial Supplement contains financial, statistical, and business-related information, as well as business and segment trends. The information
should be read in conjunction with the Company’s first quarter earnings release issued April 24, 2024.
|
|
|
| Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release |
|
Page 18 of 18 |
EX-99.3
Exhibit 99.3 First Quarter 2024 Financial Results Presentation April 24,
2024 Quarterly Earnings Report
First Quarter Snapshot 1Q24 RESULTS millions, except per share and
ratios NET REVENUE NET EARNINGS EPS 1Q24: GAAP & NON-GAAP $1,163 1Q24: GAAP $1.40 & NON-GAAP $1.49 1Q24: GAAP $164 & NON-GAAP $173 ANNUALIZED ROTCE* BOOK VALUE PER SHARE ANNUALIZED ROCE TBV $30.67 BV $44.71 1Q24:GAAP 13.5% & NON-GAAP
14.3% 1Q24:GAAP 19.7% & NON-GAAP 20.9% * Please see our definition of ROTCE in our first quarter 2024 earnings release HIGHLIGHTS Second Highest Credit Rating Upgrade Net Revenue By S&P Record Net Revenue Named U.S. Mid-Market Global Wealth
Management Equity House of the Year for 2023 Record Client Assets Repurchased Under Management 2.3 million Common Shares Quarterly Earnings Report 1
Variance to Consensus Estimates First Quarter Results Variance to
Consensus Estimates Commentary on Variance to Analyst Estimates (in Millions, except diluted EPS and share data) 1Q24 1Q24 Mean % Δ ■ Commissions & Principal Transactions: Revenues Operating* ANALYST Commissions + Principal
transactions $324 $319 2% ■ Stronger Revenue from Global Wealth Management & Investment banking $214 $185 16% Institutional Equities Asset management and service fees $367 $367 0% ■ Investment Banking: Net interest $252 $258 (2%) Net
revenues $1,163 $1,143 2% ■ Stronger Advisory Revenue Non-interest expenses ■ Stronger Equity & Fixed Income Underwriting Revenue Compensation and benefits 674 664 5% Compensation Ratio 58.0% 58.1% 10 bps ■ Net Interest Income
Non-compensation expenses 258 250 3% ■ Modest Cash Sorting Total non-interest expenses 932 914 2% Income before income taxes 231 229 1% ■ Non-compensation Expense: Provision for income taxes 58 58 1% ■ Higher Provision &
Investment Banking Gross Up Tax Rate 25.2% 25.3% 10 bps Net Income $173 $171 1% Diluted Operating EPS $1.49 $1.46 2% *Non-GAAP Quarterly Earnings Report 2
Highly Complimentary Business Lines Significant Operating Leverage
Benefits from Lower Interest Rates on Institutional Margins Significantly Outweigh Expected Decline in NII $350 $300 $250 $200 $150 $100 $50 $0 -$50 Institutional Group Pre-tax Income Net Interest Income Non-GAAP Pre-tax Margin Non-GAAP Return on
Tangible Common Equity 32.0% 30.9% 32.0% 23.9% 24.0% 21.7% 24.7% 24.6% 19.9% 19.8% 19.0% 19.2% 21.8% 24.0% 20.9% 18.7% 16.0% 16.0% 8.0% 8.0% 0.0% 0.0% 2019 2020 2021 2022 2023 2024* 2019 2020 2021 2022 2023 2024* *2024 based on results through
3/31/2024 *2024 based on results through 3/31/2024 Quarterly Earnings Report 3 millions 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24
First Quarter Results FINANCIAL RESULTS NET REVENUE Sequential millions
1Q24 Y/Y Change Change $1,400 Global Wealth Management $791 4% 3% $1,163 $1,146 $1,200 $1,107 Institutional 351 6% -2% $1,051 $1,045 Other 21 25% 0% $1,000 Net revenue 1,163 5% 1% $800 Compensation expense 674 5% 1% $600 1 Operating expense 253 9%
-1% 2 $400 57% 133% Provision for credit loss Pre-tax pre-provision income 236 2% 5% $200 Pre-tax income 231 2% 4% $0 1Q23 2Q23 3Q23 4Q23 1Q24 Taxes 58 3% 24% Net income 173 1% -2% Preferred dividends 9 0% 0% Net income available to common 163 1%
-2% shareholders Diluted EPS $1.49 6% -1% Compensation ratio 58.0% 0 bps 0 bps 3 Operating expense ratio 21.7% 70 bps -80 bps Pre-tax operating margin 19.8% -70 bps 40 bps Book value per share $44.71 2% -2% Tangible book value per share $30.67 2%
-2% 4 ROTCE 20.9% 100 bps -40 bps (1) Operating Expense = Non-Compensation Expense – Provision for Credit Loss (2) Provision for Credit Loss at bank subsidiary (3) Operating Expense Ratio excludes Provision for Credit Loss (4) Please see our
definition of ROTCE in our fourth quarter earnings release Quarterly Earnings Report 4 millions
Global Wealth Management HIGHLIGHTS GLOBAL WEALTH MANAGEMENT REVENUE
Sequential millions 1Q24 Y/Y Change ■ Record Quarterly Net Revenue Change Transactional $182 13% 7% ■ Record Quarterly Asset Management Revenue Asset Management 367 17% 11% ■ Record Client Assets Under Administration Net Interest
236 -16% -8% ■ Added 22 Financial Advisors, Including 15 Investment Banking 4 3% -6% Experienced with Total Trailing Twelve Month Other 1 nm nm Production of $6.8 million Total Global Wealth Management Net $791 4% 3% Revenue Comp. Ratio 49.3%
410 bps 240 bps Non-Comp. Ratio 13.9% 80 bps 10 bps Provision for credit loss $5 1% nm Pre-tax Margin 36.8% -490 bps -250 bps NET REVENUE & MARGIN Pre-tax Pre-provision Margin 37.4% -500 bps -190 bps $840 44% $815 FINANCIAL ADVISOR & CLIENT
ASSET METRICS $791 42% $769 $790 $766 Sequential $758 $757 millions 1Q24 Y/Y $765 40% Change 41.7% $740 Financial Advisors 2,242 0% -2% 38% 39.3% $715 39.6% 36% Independent Contractors 114 12% 6% 38.8% $690 36.8% $665 34% Total Financial Advisors
2,356 0% -1% $640 32% Client AUA $467,697 15% 5% $615 Fee-based Client Assets $177,108 18% 7% 30% $590 1Q23 2Q23 3Q23 4Q23 1Q24 Private Client Fee-based Client Assets $155,144 18% 7% Net Revenue Pre-tax Margin Quarterly Earnings Report 5 Margin Net
Revenue (millions)
Wealth Management: A Key Growth Driver CONSISTENT GROWTH $3,500 $3,000
$2,500 $2,000 $1,500 $1,000 $500 $0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Brokerage Asset Management & Service Fees Net Interest Investment Banking & Other *2024 GWM Net Revenue based on annualized results through 3/31/2024
INCREASING PERCENTAGE OF RECURRING REVENUE RECRUITING DRIVES REVENUE GROWTH 100% $500 750 90% 700 22% 23% 24% $450 34% 32% 32% 650 80% 39% 33% 46% $400 600 51% 55% 70% 550 $350 60% 500 50% $300 450 400 40% 78% $250 76% 77% 350 66% 66% 66% 64% 30%
60% 53% $200 300 47% 44% 20% 250 $150 200 10% $100 150 0% 100 $50 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50 $- 0 Net Interest Income & Asset Management Fees Transactional & Investment Banking 1Q19 1Q20 1Q21 1Q22 1Q23 1Q24
T-12 Cumulative Production Cumulative Gross FAs Quarterly Earnings Report 6 Net Revenue (millions) millions Financial Advisors
Strong Bank Fundamentals SLOWING CASH SORTING STRONG NIM DESPITE RISING
DEPOSIT COSTS 7.00% $2,068 $1,747 6.00% $1,080 $1,097 $905 $859 $726 $599 $614 $505 5.00% ($35) 3.57% 3.53% 4.00% 3.43% 3.24% 2.99% ($742) ($1,230) 3.00% ($2,022) 2.00% 1.00% ($3,640) 0.00% 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 Sweep
Smart Rate Ticketed MMF Net Interest Margin Deposit Costs Asset Yields ALLOWANCE FOR CREDIT LOSSES / TOTAL LOANS WELL CAPITALIZED UNDER STRESS SCENARIO 3.50% 12.0% 3.00% 11.0% 10.0% 2.50% 9.0% 2.00% 8.0% 1.50% 7.0% 0.89% 0.86% 0.85% 6.0% 0.80% 1.00%
0.75% 5.0% 0.50% 4.0% 0.00% 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 Tier 1 Ratio (ex. AOCI & HTM Losses) Tier 1 Ratio Well Capitalized Residential SBL CRE Construction C&I Unfunded / Other reserves* Total Reserve Ratio Quarterly
Earnings Report 7 millions
Institutional Group HIGHLIGHTS INSTITUTIONAL GROUP REVENUE Sequential
millions 1Q24 Y/Y Change Change ■ Named US Mid-Market Equity House for 2023 by Advisory $119 -21% -8% International Financing Review Capital Raising $90 60% 26% ■ Ranked #1 in Municipal Issuance in Number of Transactional $143 15% -10%
Issues in 2024 with 15.2% Market Share Total Institutional Revenue* $351 6% -2% ■ Increased Market Share in Equity Transactions Comp. Ratio 61.4% -50 bps -790 bps Non-Comp. Ratio 28.0% 0 bps -50 bps ■ Highest Equity & Fixed Income
Underwriting Pre-tax Margin 10.6% 50 bps 840 bps Revenue since 4Q21 * Includes net interest, asset management, and other income FIXED INCOME REVENUE EQUITIES REVENUE $142 $150 $139 $94 $100 $89 $77 $113 $80 $76 $103 $40 $110 $68 $92 $50 $32 $40 $25
$60 $21 $32 $30 $45 $25 $70 $40 $20 $30 $52 $46 $47 $57 $54 $71 $68 $67 $102 $89 $0 1Q23 2Q23 3Q23 4Q23 1Q24 -$10 1Q23 2Q23 3Q23 4Q23 1Q24 Transactional Underwriting Transactional Underwriting * 2021 revenue based on annualized results through
9/30/2021 Quarterly Earnings Report 8 millions millions
Expenses Non-GAAP EXPENSE RATIOS NON-GAAP EXPENSES & PRE-TAX INCOME
65% 35% millions 1Q24 1Q23 Y/Y Change 30% 63% 25% 61% Compensation $674 $642 5% 20% 59% Non-compensation Expense, 15% $245 $227 8% Ex. IB Gross Up & Credit Loss 57% 58.0% 58.0% 58.0% 58.0% 58.0% 10% Credit Loss Provision & IB Gross Up $13
$11 18% 55% 5% 53% 0% Non-compensation $258 $238 9% 1Q23 2Q23 3Q23 4Q23 1Q24 Pre-tax Income $231 $227 2% Non-compensation Operating Ratio IB Gross up & Loan Loss Provision Compensation Ratio ANNUAL GAAP to Non-GAAP RESULTS GAAP to Non-GAAP
RECONCILIATION $900 $800 (000s) 1Q24 $700 $600 GAAP Net Income $163,575 $500 $400 Preferred Dividend $9,320 $300 $200 Net Income available to common Shareholders $154,255 $100 $0 Non-GAAP After Tax Adjustments $9,091 2019 2020 2021 2022 2023 2024*
Non-GAAP Net Income Available to Common $163,346 Shareholders GAAP Net Income Available to Common Shareholders Non-GAAP After Tax Adjustments * For reconciliation of GAAP to non-GAAP expenses, refer to our first quarter 2024 earnings release. *2024
annual GAAP to non-GAAP results based on annualized results through 3/31/2024 Quarterly Earnings Report 9 millions Compensation Ratio Non-compensation Ratio
Capital Utilization HIGHLIGHTS FIRM-WIDE ASSETS & CAPITAL RATIOS
$40,000 $38,598 22.0% $38,258 ■ Repurchased 2.3 million Shares $37,878 $37,727 $37,298 $38,000 20.0% $36,000 ■ 11 million Shares in Total Authorization 18.0% $34,000 $32,000■ Total Assets Increased $531 million 17.2% 17.3% 17.3%
16.0% 16.9% 16.8% $30,000 14.0% ■ Bank Funding Increased at CAGR of 13% Since 2019 $28,000 $26,000 12.0% $24,000 10.0% 11.1% 10.9% 10.8% $22,000 10.6% 10.5% $20,000 8.0% 1Q23 2Q23 3Q23 4Q23 1Q24 Assets Tier 1 Leverage Tier 1 Risk Based Capital
$1,600,000 DEPLOYING EXCESS CAPITAL BANK FUNDING: A TRACK RECORD of GROWTH $1,400,000 $50,000 $1,200,000 $45,000 $40,000 $1,000,000 $35,000 $800,000 $30,000 $600,000 $25,000 $20,000 $400,000 $15,000 $200,000 $10,000 $5,000 $0 2019 2020 2021 2022
2023 2024* $0 ($200,000) 2019 2020 2021 2022 2023 2024* ($400,000) Capital Generated Bank Growth Common Stock Repurchases Dividends (Common & Preferred) Bank Deposits Available Funding Acquisitions *2024 Estimated Capital Generated based
annualized 1Q24 Net Income plus current capital in excess of regulatory minimum. *2024 based on results through 3/31/2024 Quarterly Earnings Report 10 (000s) millions millions
Concluding Remarks Quarterly Earnings Report
First Quarter 2024 Financial Results Presentation April 24, 2024
Quarterly Earnings Report
Disclaimer Forward-Looking Statements This presentation may contain
“forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks, assumptions, and uncertainties, including statements relating to the market opportunity and future
business prospects of Stifel Financial Corp., as well as Stifel, Nicolaus & Company, Incorporated and its subsidiaries (collectively, “SF” or the “Company”). These statements can be identified by the use of the words
“may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,”
“anticipate,” “expect,” and similar expressions. All statements not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. For information about the risks and important factors that could affect the Company’s future results, financial condition
and liquidity, see “Risk Factors” in Part I of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Forward-looking statements speak only as to the date they are made. The Company disclaims any intent or
obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. Use of Non-GAAP Financial Measures The Company prepares its Consolidated Financial Statements using
accounting principles generally accepted in the United States (U.S. GAAP). The Company may disclose certain “non-GAAP financial measures” in the course of its earnings releases, earnings conference calls, financial presentations and
otherwise. The Securities and Exchange Commission defines a “non-GAAP financial measure” as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments that
effectively exclude, or include, amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. Non-GAAP financial measures disclosed by the Company are provided as additional information to analysts,
investors and other stakeholders in order to provide them with greater transparency about, or an alternative method for assessing the Company’s financial condition or operating results. These measures are not in accordance with, or a
substitute for U.S. GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever the Company refers to a non-GAAP financial measure, it will also define it or present the most directly comparable
financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the non-GAAP financial measure it references and such comparable U.S. GAAP financial measure. Quarterly Earnings Report
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