STIFEL FINANCIAL CORP false 0000720672 0000720672 2023-07-26 2023-07-26 0000720672 us-gaap:CommonStockMember 2023-07-26 2023-07-26 0000720672 sf:DepositorySharesEachRepresentingOneByThousandthInterestInShareOfSixPointTwoFivePercentageNonCumulativePreferredStockSeriesBMember 2023-07-26 2023-07-26 0000720672 sf:DepositorySharesEachRepresentingOneByThousandthInterestInShareOfSixPointOneTwoFivePercentageNonCumulativePreferredStockSeriesCPreferredStockMember 2023-07-26 2023-07-26 0000720672 sf:DepositorySharesEachRepresentingOneByThousandthInterestInShareOfFourPointFiveZeroPercentageNonCumulativePreferredStockSeriesDPreferredStockMember 2023-07-26 2023-07-26 0000720672 sf:SeniorNotes520Due2047Member 2023-07-26 2023-07-26
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): July 26, 2023
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
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(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 July 26, 2023, Stifel Financial Corp. (“Stifel” or the “Company”) reported its financial results for the quarter ended June 30, 2023. 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 June 30, 2023 is attached as Exhibit 99.2 to this Report on Form 8-K.
On Wednesday, July 26, 2023, 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. |
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(Registrant) |
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Date: July 26, 2023 |
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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 Second Quarter 2023 Results
ST. LOUIS, MO, July 26, 2023 Stifel Financial Corp. (NYSE: SF) today reported net revenues of $1.1 billion for the three
months ended June 30, 2023, compared with $1.1 billion a year ago. Net income available to common shareholders was $125.0 million, or $1.10 per diluted common share, compared with $151.5 million, or $1.29 per diluted common share
for the second quarter of 2022. Non-GAAP net income available to common shareholders was $136.3 million, or $1.20 per diluted common share for the second quarter of 2023.
Ronald J. Kruszewski, Chairman and Chief Executive Officer, said Our results in the quarter reflect the benefits of Stifels diverse
business model. We were able to leverage another record quarter in our Global Wealth Management segment to partially offset the continued market challenges faced by our Institutional Group. Although the outlook remains uncertain, we are beginning to
see signs of improvement as our equity capital markets revenue improved both sequentially and year-on-year and we anticipate a pickup in advisory revenue in the second
half of the year. As markets normalize, I expect that Stifel will capitalize on its increased scale and continue the firms long history of profitable growth.
Highlights
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The Company reported net revenues of $1.1 billion as our business navigated an environment that remains challenging. |
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Non-GAAP net income available to common shareholders of $1.20. |
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Net interest income up $96.3 million, or 49%, over the year-ago quarter. |
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Recruited 46 financial advisors during the quarter, including 21 experienced employee advisors and 7 experienced independent advisors. |
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Bank loans up $1.3 billion, or 7%, from the prior year. |
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Non-GAAP pre-tax margin of 19% as the Company maintained its focus on expense discipline, while continuing to invest in the business. In
addition, the Company gained operating leverage as a result of the composition of revenues compared to the prior year. |
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Annualized return on tangible common equity (ROTCE) (5) of 17% in a volatile and uncertain market environment. |
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Tangible book value per common share (7) of $30.64, up 6% from prior year.
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Financial Summary (Unaudited) |
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(000s) |
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2Q 2023 |
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2Q 2022 |
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6m 2023 |
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6m 2022 |
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GAAP Financial Highlights: |
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Net revenues |
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$ |
1,050,721 |
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$ |
1,108,126 |
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$ |
2,157,514 |
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$ |
2,224,653 |
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Net income (1) |
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$ |
125,032 |
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$ |
151,495 |
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$ |
273,251 |
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$ |
315,724 |
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Diluted EPS (1) |
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$ |
1.10 |
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$ |
1.29 |
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$ |
2.38 |
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$ |
2.68 |
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Comp. ratio |
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58.6 |
% |
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58.9 |
% |
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58.7 |
% |
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59.6 |
% |
Non-comp. ratio |
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24.1 |
% |
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21.4 |
% |
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23.2 |
% |
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20.4 |
% |
Pre-tax margin |
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17.3 |
% |
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19.7 |
% |
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18.1 |
% |
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20.0 |
% |
Non-GAAP Financial Highlights: |
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Net revenues |
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$ |
1,050,721 |
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$ |
1,108,127 |
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$ |
2,157,511 |
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$ |
2,224,714 |
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Net income (1) (2) |
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$ |
136,256 |
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$ |
163,853 |
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$ |
297,524 |
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$ |
339,440 |
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Diluted EPS (1) (2) |
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$ |
1.20 |
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$ |
1.40 |
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$ |
2.59 |
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$ |
2.88 |
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Comp. ratio (2) |
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58.0 |
% |
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58.1 |
% |
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58.0 |
% |
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58.8 |
% |
Non-comp. ratio (2) |
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23.3 |
% |
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20.7 |
% |
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22.4 |
% |
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19.7 |
% |
Pre-tax margin (3) |
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18.7 |
% |
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21.2 |
% |
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19.6 |
% |
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21.5 |
% |
ROCE (4) |
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11.6 |
% |
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14.8 |
% |
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12.8 |
% |
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15.5 |
% |
ROTCE (5) |
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16.8 |
% |
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21.6 |
% |
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18.4 |
% |
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22.7 |
% |
Global Wealth
Management (assets and loans in millions) |
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Net revenues |
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$ |
758,190 |
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$ |
697,980 |
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$ |
1,515,376 |
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$ |
1,379,705 |
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Pre-tax net income |
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$ |
299,904 |
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$ |
245,152 |
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$ |
616,013 |
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$ |
470,565 |
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Total client assets |
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$ |
417,669 |
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$ |
377,591 |
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Fee-based client assets |
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$ |
154,538 |
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$ |
141,223 |
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Bank loans (6) |
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$ |
20,562 |
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$ |
19,272 |
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Institutional
Group |
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Net revenues |
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$ |
276,244 |
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$ |
411,364 |
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$ |
608,857 |
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$ |
842,727 |
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Equity |
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$ |
149,035 |
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$ |
241,063 |
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$ |
363,607 |
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$ |
492,327 |
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Fixed Income |
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$ |
127,209 |
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$ |
170,301 |
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$ |
245,250 |
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$ |
350,400 |
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Pre-tax net income/
(loss) |
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($ |
12,895 |
) |
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$ |
72,992 |
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$ |
20,825 |
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$ |
169,620 |
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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 $758.2 million for the three months ended June 30, 2023 compared with $698.0 million during the second quarter of 2022. Pre-tax net income was $299.9 million compared with
$245.2 million in the second quarter of 2022.
Highlights
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Recruited 46 financial advisors during the quarter, including 21 experienced employee advisors, and 7 experienced independent advisors, with total trailing 12 month production of $25 million. |
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Client assets of $417.7 billion, up 11% over the year-ago quarter. |
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Bank loans of $20.6 billion, up 7% over the year-ago quarter. |
Net revenues increased 9% from a year ago:
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Transactional revenues decreased 7% from the year-ago quarter reflecting a decrease in client activity. |
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Asset management revenues decreased 3% from the year-ago quarter primarily due to declines in the markets. |
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Net interest income increased 42% over the year-ago quarter driven by higher interest rates and loan growth. |
Total Expenses:
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Compensation expense as a percent of net revenues decreased to 46.7% primarily as a result of higher net interest income. |
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Provision for credit losses was primarily impacted by reserve reductions, partially offset by growth in the loan portfolio. |
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Non-compensation operating expenses as a percent of net revenues decreased to 13.7% primarily as a result of revenue growth, expense discipline, and a decrease in the provision
for credit losses over the year-ago quarter.
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Summary Results of Operations |
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(000s) |
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2Q 2023 |
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2Q 2022 |
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Net revenues |
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$ |
758,190 |
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$ |
697,980 |
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Transactional revenues |
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157,958 |
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170,470 |
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Asset management |
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320,238 |
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331,243 |
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Net interest income |
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277,345 |
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195,828 |
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Investment banking |
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4,065 |
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5,056 |
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Other income |
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(1,416 |
) |
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(4,617 |
) |
Total expenses |
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$ |
458,286 |
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$ |
452,828 |
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Compensation expense |
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354,086 |
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349,368 |
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Provision for credit losses |
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7,824 |
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12,785 |
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Non-comp. opex |
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96,376 |
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90,675 |
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Pre-tax net income |
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$ |
299,904 |
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$ |
245,152 |
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Compensation ratio |
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46.7 |
% |
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50.1 |
% |
Non-compensation ratio |
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13.7 |
% |
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14.8 |
% |
Pre-tax
margin |
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39.6 |
% |
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35.1 |
% |
Stifel Financial
Corp. | Page 2
Institutional Group
Institutional Group reported net revenues of
$276.2 million for the three months ended June 30, 2023 compared with $411.4 million during the second quarter of 2022. Institutional Group reported pre-tax net loss of $12.9 million for
the three months ended June 30, 2023 compared with pre-tax net income of $73.0 million in the second quarter of 2022.
Highlights
Investment banking revenues decreased 39% from a year ago:
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Advisory revenues of $86.6 million decreased 57% from the year-ago quarter driven by lower levels of completed advisory transactions. |
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Equity capital raising revenues increased 16% over the year-ago quarter driven by higher volumes. |
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Fixed income capital raising revenues increased 11% over the year-ago quarter driven by an increase in our corporate debt issuance business. |
Fixed income transactional revenues decreased 30% from a year ago:
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Fixed income transactional revenues decreased from the year-ago quarter driven by declines across most products as a result of lower volumes and lower market volatility compared
with elevated levels in the prior year period. |
Equity transactional revenues remained relatively consistent with a year ago:
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Equity transactional revenues declined slightly from the year-ago quarter driven by declines in equity markets and lower client activity, partially offset by lower trading losses.
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Total Expenses:
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Compensation expense as a percent of net revenues increased to 70.3% primarily as a result of lower net revenues. |
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Non-compensation operating expenses as a percent of net revenues increased to 34.4% as a result of lower net revenues, higher occupancy costs, and continued investments in
technology, partially offset by lower professional fees and clearing expenses.
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Summary Results of Operations |
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(000s) |
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2Q 2023 |
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2Q 2022 |
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Net revenues |
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$ |
276,244 |
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$ |
411,364 |
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Investment banking |
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161,481 |
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266,019 |
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Advisory |
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86,595 |
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199,556 |
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Equity capital raising |
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30,109 |
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25,993 |
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Fixed income capital raising |
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44,777 |
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40,470 |
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Fixed income transactional |
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67,508 |
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96,200 |
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Equity transactional |
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45,592 |
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45,614 |
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Other |
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1,663 |
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3,531 |
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Total expenses |
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$ |
289,139 |
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$ |
338,372 |
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Compensation expense |
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194,158 |
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244,711 |
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Non-comp. opex. |
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94,981 |
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93,661 |
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Pre-tax net income/(loss) |
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($ |
12,895 |
) |
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$ |
72,992 |
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Compensation ratio |
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70.3 |
% |
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59.5 |
% |
Non-compensation ratio |
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34.4 |
% |
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22.8 |
% |
Pre-tax
margin |
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(4.7 |
%) |
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17.7 |
% |
Stifel Financial
Corp. | Page 3
Other Matters
Highlights
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Total assets increased $821.8 million, or 2%, over the year-ago quarter. |
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The Company repurchased $86.8 million of its outstanding common stock during the second quarter. |
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Weighted average diluted shares outstanding decreased as a result of the Companys lower share price and increase in share repurchases over the comparable period. |
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The Board of Directors declared a $0.36 quarterly dividend per share payable on June 15, 2023 to common shareholders of record on June 1, 2023. |
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The Board of Directors declared a quarterly dividend on the outstanding shares of the Companys preferred stock payable on June 15, 2023 to shareholders of record on June 1, 2023.
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2Q 2023 |
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2Q 2022 |
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Common stock
repurchases |
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Repurchases (000s) |
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$ |
86,821 |
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$ |
30,666 |
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Number of shares (000s) |
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1,492 |
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505 |
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Average price |
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$ |
58.21 |
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$ |
60.68 |
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Period end shares (000s) |
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104,889 |
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106,166 |
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Weighted average diluted shares outstanding (000s) |
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113,864 |
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117,400 |
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Effective tax rate |
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25.9 |
% |
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26.4 |
% |
Stifel Financial Corp. (8) |
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Tier 1 common capital ratio |
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14.3 |
% |
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14.8 |
% |
Tier 1 risk based capital ratio |
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17.3 |
% |
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18.0 |
% |
Tier 1 leverage capital ratio |
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11.1 |
% |
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11.2 |
% |
Tier 1 capital (MM) |
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$ |
3,999 |
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$ |
3,837 |
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Risk weighted assets (MM) |
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$ |
23,165 |
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$ |
21,281 |
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Average assets (MM) |
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$ |
36,041 |
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$ |
34,330 |
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Quarter end assets (MM) |
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$ |
37,298 |
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$ |
36,476 |
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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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Positive |
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Stifel Financial
Corp. | Page 4
Conference Call Information
Stifel Financial Corp. will host its second quarter 2023 financial results conference call on Wednesday, July 26, 2023,
at 9:30 a.m. Eastern Time. The conference call may include forward-looking statements.
All interested parties are invited to listen to
Stifels Chairman and CEO, Ronald J. Kruszewski, by dialing (866) 409-1555 and referencing conference ID 4717221. A live audio webcast of the call, as well as a presentation highlighting the
Companys results, will be available through the Companys 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. Stifels broker-dealer clients are served in the United States through Stifel, Nicolaus & Company, Incorporated, including its Eaton Partners business division;
Keefe, Bruyette & Woods, Inc.; Miller Buckfire & Co., LLC; and Stifel Independent Advisors, LLC. The Companys 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 Companys 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 Companys 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 Companys future
results, financial condition and liquidity, see Risk Factors in Part I, Item 1A of the Companys Annual Report on Form 10-K for the year ended December 31, 2022. 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 |
|
|
|
|
|
Six Months Ended |
|
(000s, except per share amounts) |
|
6/30/2023 |
|
|
6/30/2022 |
|
|
% Change |
|
|
3/31/2023 |
|
|
% Change |
|
|
6/30/2023 |
|
|
6/30/2022 |
|
|
% Change |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions |
|
$ |
165,358 |
|
|
$ |
186,681 |
|
|
|
(11.4 |
) |
|
$ |
169,550 |
|
|
|
(2.5 |
) |
|
$ |
334,908 |
|
|
$ |
382,590 |
|
|
|
(12.5 |
) |
Principal transactions |
|
|
105,700 |
|
|
|
125,603 |
|
|
|
(15.8 |
) |
|
|
115,522 |
|
|
|
(8.5 |
) |
|
|
221,222 |
|
|
|
284,873 |
|
|
|
(22.3 |
) |
Investment banking |
|
|
166,825 |
|
|
|
271,075 |
|
|
|
(38.5 |
) |
|
|
211,879 |
|
|
|
(21.3 |
) |
|
|
378,704 |
|
|
|
525,921 |
|
|
|
(28.0 |
) |
Asset management |
|
|
320,264 |
|
|
|
331,264 |
|
|
|
(3.3 |
) |
|
|
315,569 |
|
|
|
1.5 |
|
|
|
635,833 |
|
|
|
672,900 |
|
|
|
(5.5 |
) |
Other income |
|
|
894 |
|
|
|
(1,917 |
) |
|
|
146.6 |
|
|
|
(2,293 |
) |
|
|
139.0 |
|
|
|
(1,399 |
) |
|
|
6,971 |
|
|
|
(120.1 |
) |
Operating revenues |
|
|
759,041 |
|
|
|
912,706 |
|
|
|
(16.8 |
) |
|
|
810,227 |
|
|
|
(6.3 |
) |
|
|
1,569,268 |
|
|
|
1,873,255 |
|
|
|
(16.2 |
) |
Interest revenue |
|
|
482,770 |
|
|
|
212,754 |
|
|
|
126.9 |
|
|
|
451,564 |
|
|
|
6.9 |
|
|
|
934,334 |
|
|
|
378,189 |
|
|
|
147.1 |
|
Total revenues |
|
|
1,241,811 |
|
|
|
1,125,460 |
|
|
|
10.3 |
|
|
|
1,261,791 |
|
|
|
(1.6 |
) |
|
|
2,503,602 |
|
|
|
2,251,444 |
|
|
|
11.2 |
|
Interest expense |
|
|
191,090 |
|
|
|
17,334 |
|
|
|
nm |
|
|
|
154,998 |
|
|
|
23.3 |
|
|
|
346,088 |
|
|
|
26,791 |
|
|
|
nm |
|
Net revenues |
|
|
1,050,721 |
|
|
|
1,108,126 |
|
|
|
(5.2 |
) |
|
|
1,106,793 |
|
|
|
(5.1 |
) |
|
|
2,157,514 |
|
|
|
2,224,653 |
|
|
|
(3.0 |
) |
Non-interest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
615,667 |
|
|
|
652,709 |
|
|
|
(5.7 |
) |
|
|
651,190 |
|
|
|
(5.5 |
) |
|
|
1,266,857 |
|
|
|
1,326,400 |
|
|
|
(4.5 |
) |
Non-compensation operating expenses |
|
|
253,669 |
|
|
|
236,876 |
|
|
|
7.1 |
|
|
|
245,720 |
|
|
|
3.2 |
|
|
|
499,389 |
|
|
|
452,603 |
|
|
|
10.3 |
|
Total non-interest expenses |
|
|
869,336 |
|
|
|
889,585 |
|
|
|
(2.3 |
) |
|
|
896,910 |
|
|
|
(3.1 |
) |
|
|
1,766,246 |
|
|
|
1,779,003 |
|
|
|
(0.7 |
) |
Income before income taxes |
|
|
181,385 |
|
|
|
218,541 |
|
|
|
(17.0 |
) |
|
|
209,883 |
|
|
|
(13.6 |
) |
|
|
391,268 |
|
|
|
445,650 |
|
|
|
(12.2 |
) |
Provision for income taxes |
|
|
47,033 |
|
|
|
57,725 |
|
|
|
(18.5 |
) |
|
|
52,344 |
|
|
|
(10.1 |
) |
|
|
99,377 |
|
|
|
111,285 |
|
|
|
(10.7 |
) |
Net income |
|
|
134,352 |
|
|
|
160,816 |
|
|
|
(16.5 |
) |
|
|
157,539 |
|
|
|
(14.7 |
) |
|
|
291,891 |
|
|
|
334,365 |
|
|
|
(12.7 |
) |
Preferred dividends |
|
|
9,320 |
|
|
|
9,321 |
|
|
|
(0.0 |
) |
|
|
9,320 |
|
|
|
0.0 |
|
|
|
18,640 |
|
|
|
18,641 |
|
|
|
(0.0 |
) |
Net income available to common shareholders |
|
$ |
125,032 |
|
|
$ |
151,495 |
|
|
|
(17.5 |
) |
|
$ |
148,219 |
|
|
|
(15.6 |
) |
|
$ |
273,251 |
|
|
$ |
315,724 |
|
|
|
(13.5 |
) |
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.16 |
|
|
$ |
1.39 |
|
|
|
(16.5 |
) |
|
$ |
1.36 |
|
|
|
(14.7 |
) |
|
$ |
2.52 |
|
|
$ |
2.89 |
|
|
|
(12.8 |
) |
Diluted |
|
$ |
1.10 |
|
|
$ |
1.29 |
|
|
|
(14.7 |
) |
|
$ |
1.28 |
|
|
|
(14.1 |
) |
|
$ |
2.38 |
|
|
$ |
2.68 |
|
|
|
(11.2 |
) |
Cash dividends declared per common share |
|
$ |
0.36 |
|
|
$ |
0.30 |
|
|
|
20.0 |
|
|
$ |
0.36 |
|
|
|
0.0 |
|
|
$ |
0.72 |
|
|
$ |
0.60 |
|
|
|
20.0 |
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
107,944 |
|
|
|
109,083 |
|
|
|
(1.0 |
) |
|
|
108,754 |
|
|
|
(0.7 |
) |
|
|
108,360 |
|
|
|
109,144 |
|
|
|
(0.7 |
) |
Diluted |
|
|
113,864 |
|
|
|
117,400 |
|
|
|
(3.0 |
) |
|
|
115,390 |
|
|
|
(1.3 |
) |
|
|
114,658 |
|
|
|
117,838 |
|
|
|
(2.7 |
) |
Stifel Financial
Corp. | Page 6
Non-GAAP Financial Measures (9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
(000s, except per share amounts) |
|
6/30/2023 |
|
|
6/30/2022 |
|
|
6/30/2023 |
|
|
6/30/2022 |
|
GAAP net income |
|
$ |
134,352 |
|
|
$ |
160,816 |
|
|
$ |
291,891 |
|
|
$ |
334,365 |
|
Preferred dividend |
|
|
9,320 |
|
|
|
9,321 |
|
|
|
18,640 |
|
|
|
18,641 |
|
Net income available to common shareholders |
|
|
125,032 |
|
|
|
151,495 |
|
|
|
273,251 |
|
|
|
315,724 |
|
|
|
|
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related (10) |
|
|
15,144 |
|
|
|
16,791 |
|
|
|
32,530 |
|
|
|
31,644 |
|
Provision for income taxes (11) |
|
|
(3,920 |
) |
|
|
(4,433 |
) |
|
|
(8,257 |
) |
|
|
(7,928 |
) |
Total non-GAAP adjustments |
|
|
11,224 |
|
|
|
12,358 |
|
|
|
24,273 |
|
|
|
23,716 |
|
Non-GAAP net income available to common
shareholders |
|
$ |
136,256 |
|
|
$ |
163,853 |
|
|
$ |
297,524 |
|
|
$ |
339,440 |
|
Weighted average diluted shares outstanding |
|
|
113,864 |
|
|
|
117,400 |
|
|
|
114,658 |
|
|
|
117,838 |
|
|
|
|
|
|
GAAP earnings per diluted common share |
|
$ |
1.18 |
|
|
$ |
1.37 |
|
|
$ |
2.55 |
|
|
$ |
2.84 |
|
Non-GAAP adjustments |
|
|
0.10 |
|
|
|
0.11 |
|
|
|
0.21 |
|
|
|
0.20 |
|
Non-GAAP earnings per diluted common share |
|
$ |
1.28 |
|
|
$ |
1.48 |
|
|
$ |
2.76 |
|
|
$ |
3.04 |
|
GAAP earnings per diluted common share available to common shareholders |
|
$ |
1.10 |
|
|
$ |
1.29 |
|
|
$ |
2.38 |
|
|
$ |
2.68 |
|
Non-GAAP adjustments |
|
|
0.10 |
|
|
|
0.11 |
|
|
|
0.21 |
|
|
|
0.20 |
|
Non-GAAP
earnings per diluted common share available to common shareholders |
|
$ |
1.20 |
|
|
$ |
1.40 |
|
|
$ |
2.59 |
|
|
$ |
2.88 |
|
GAAP to Non-GAAP Reconciliation (9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
(000s) |
|
6/30/2023 |
|
|
6/30/2022 |
|
|
6/30/2023 |
|
|
6/30/2022 |
|
GAAP compensation and benefits |
|
$ |
615,667 |
|
|
$ |
652,709 |
|
|
$ |
1,266,857 |
|
|
$ |
1,326,400 |
|
As a percentage of net revenues |
|
|
58.6 |
% |
|
|
58.9 |
% |
|
|
58.7 |
% |
|
|
59.6 |
% |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related (10) |
|
|
(6,523 |
) |
|
|
(9,174 |
) |
|
|
(15,776 |
) |
|
|
(18,485 |
) |
Non-GAAP compensation and benefits |
|
$ |
609,144 |
|
|
$ |
643,535 |
|
|
$ |
1,251,081 |
|
|
$ |
1,307,915 |
|
As a percentage of non-GAAP net revenues |
|
|
58.0 |
% |
|
|
58.1 |
% |
|
|
58.0 |
% |
|
|
58.8 |
% |
|
|
|
|
|
GAAP non-compensation expenses |
|
$ |
253,669 |
|
|
$ |
236,876 |
|
|
$ |
499,389 |
|
|
$ |
452,603 |
|
As a percentage of net revenues |
|
|
24.1 |
% |
|
|
21.4 |
% |
|
|
23.2 |
% |
|
|
20.4 |
% |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related (10) |
|
|
(8,621 |
) |
|
|
(7,616 |
) |
|
|
(16,757 |
) |
|
|
(13,098 |
) |
Non-GAAP
non-compensation expenses |
|
$ |
245,048 |
|
|
$ |
229,260 |
|
|
$ |
482,632 |
|
|
$ |
439,505 |
|
As a percentage of non-GAAP net revenues |
|
|
23.3 |
% |
|
|
20.7 |
% |
|
|
22.4 |
% |
|
|
19.7 |
% |
Total merger-related expenses |
|
$ |
15,144 |
|
|
$ |
16,791 |
|
|
$ |
32,530 |
|
|
$ |
31,644 |
|
Stifel Financial
Corp. | Page 7
Footnotes
(1) |
Represents available to common shareholders. |
(2) |
Reconciliations of the Companys 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 $64.6 million and $57.4 million as of June 30, 2023 and 2022, 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 Companys earnings release, July 26, 2023.
|
(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 Companys 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 Companys on-going business. |
(11) |
Primarily represents the Companys effective tax rate for the period applied to the non-GAAP adjustments. |
Stifel Financial
Corp. | Page 8
Exhibit 99.2
Second Quarter 2023 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 | Second Quarter 2023 Earnings Release |
|
Page 1 of 18 |
Consolidated Financial Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
(Unaudited, 000s, except per share information) |
|
6/30/2023 |
|
|
6/30/2022 |
|
|
% Change |
|
|
3/31/2023 |
|
|
% Change |
|
|
6/30/2023 |
|
|
6/30/2022 |
|
|
% Change |
|
Net revenues |
|
$ |
1,050,721 |
|
|
$ |
1,108,126 |
|
|
|
(5.2 |
%) |
|
$ |
1,106,793 |
|
|
|
(5.1 |
%) |
|
$ |
2,157,514 |
|
|
$ |
2,224,653 |
|
|
|
(3.0 |
%) |
Net income |
|
$ |
134,352 |
|
|
$ |
160,816 |
|
|
|
(16.5 |
%) |
|
$ |
157,539 |
|
|
|
(14.7 |
%) |
|
$ |
291,891 |
|
|
$ |
334,365 |
|
|
|
(12.7 |
%) |
Preferred dividends |
|
|
9,320 |
|
|
|
9,321 |
|
|
|
(0.0 |
%) |
|
|
9,320 |
|
|
|
0.0 |
% |
|
|
18,640 |
|
|
|
18,641 |
|
|
|
(0.0 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders |
|
$ |
125,032 |
|
|
$ |
151,495 |
|
|
|
(17.5 |
%) |
|
$ |
148,219 |
|
|
|
(15.6 |
%) |
|
$ |
273,251 |
|
|
$ |
315,724 |
|
|
|
(13.5 |
%) |
Earnings per diluted common share |
|
$ |
1.18 |
|
|
$ |
1.37 |
|
|
|
(13.9 |
%) |
|
$ |
1.36 |
|
|
|
(13.2 |
%) |
|
$ |
2.55 |
|
|
$ |
2.84 |
|
|
|
(10.2 |
%) |
Earnings per diluted common share available to common shareholders |
|
$ |
1.10 |
|
|
$ |
1.29 |
|
|
|
(14.7 |
%) |
|
$ |
1.28 |
|
|
|
(14.1 |
%) |
|
$ |
2.38 |
|
|
$ |
2.68 |
|
|
|
(11.2 |
%) |
Non-GAAP financial summary (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
$ |
1,050,721 |
|
|
$ |
1,108,127 |
|
|
|
(5.2 |
%) |
|
$ |
1,106,790 |
|
|
|
(5.1 |
%) |
|
$ |
2,157,511 |
|
|
$ |
2,224,714 |
|
|
|
(3.0 |
%) |
Net income |
|
$ |
145,576 |
|
|
$ |
173,174 |
|
|
|
(15.9 |
%) |
|
$ |
170,588 |
|
|
|
(14.7 |
%) |
|
$ |
316,164 |
|
|
$ |
358,081 |
|
|
|
(11.7 |
%) |
Preferred dividends |
|
|
9,320 |
|
|
|
9,321 |
|
|
|
(0.0 |
%) |
|
|
9,320 |
|
|
|
0.0 |
% |
|
|
18,640 |
|
|
|
18,641 |
|
|
|
(0.0 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders |
|
$ |
136,256 |
|
|
|
163,853 |
|
|
|
(16.8 |
%) |
|
|
161,268 |
|
|
|
(15.5 |
%) |
|
|
297,524 |
|
|
|
339,440 |
|
|
|
(12.3 |
%) |
Earnings per diluted common share |
|
$ |
1.28 |
|
|
$ |
1.48 |
|
|
|
(13.5 |
%) |
|
$ |
1.48 |
|
|
|
(13.5 |
%) |
|
$ |
2.76 |
|
|
$ |
3.04 |
|
|
|
(9.2 |
%) |
Earnings per diluted common share available to common shareholders |
|
$ |
1.20 |
|
|
$ |
1.40 |
|
|
|
(14.3 |
%) |
|
$ |
1.40 |
|
|
|
(14.3 |
%) |
|
$ |
2.59 |
|
|
$ |
2.88 |
|
|
|
(10.1 |
%) |
|
|
|
|
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
107,944 |
|
|
|
109,083 |
|
|
|
(1.0 |
%) |
|
|
108,754 |
|
|
|
(0.7 |
%) |
|
|
108,360 |
|
|
|
109,144 |
|
|
|
(0.7 |
%) |
Diluted |
|
|
113,864 |
|
|
|
117,400 |
|
|
|
(3.0 |
%) |
|
|
115,390 |
|
|
|
(1.3 |
%) |
|
|
114,658 |
|
|
|
117,838 |
|
|
|
(2.7 |
%) |
Period end common shares outstanding |
|
|
104,889 |
|
|
|
106,166 |
|
|
|
(1.2 |
%) |
|
|
106,172 |
|
|
|
(1.2 |
%) |
|
|
104,889 |
|
|
|
106,166 |
|
|
|
(1.2 |
%) |
Cash dividends declared per common share |
|
$ |
0.36 |
|
|
$ |
0.30 |
|
|
|
20.0 |
% |
|
$ |
0.36 |
|
|
|
0.0 |
% |
|
$ |
0.72 |
|
|
$ |
0.60 |
|
|
|
20.0 |
% |
|
|
|
Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2023 Earnings Release |
|
Page 2 of 18 |
GAAP Consolidated Results of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
(Unaudited, 000s, except per share information) |
|
6/30/2023 |
|
|
6/30/2022 |
|
|
% Change |
|
|
3/31/2023 |
|
|
% Change |
|
|
6/30/2023 |
|
|
6/30/2022 |
|
|
% Change |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions |
|
$ |
165,358 |
|
|
$ |
186,681 |
|
|
|
(11.4 |
%) |
|
$ |
169,550 |
|
|
|
(2.5 |
%) |
|
$ |
334,908 |
|
|
$ |
382,590 |
|
|
|
(12.5 |
%) |
Principal transactions |
|
|
105,700 |
|
|
|
125,603 |
|
|
|
(15.8 |
%) |
|
|
115,522 |
|
|
|
(8.5 |
%) |
|
|
221,222 |
|
|
|
284,873 |
|
|
|
(22.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactional revenues |
|
|
271,058 |
|
|
|
312,284 |
|
|
|
(13.2 |
%) |
|
|
285,072 |
|
|
|
(4.9 |
%) |
|
|
556,130 |
|
|
|
667,463 |
|
|
|
(16.7 |
%) |
Capital raising |
|
|
78,950 |
|
|
|
71,519 |
|
|
|
10.4 |
% |
|
|
60,816 |
|
|
|
29.8 |
% |
|
|
139,766 |
|
|
|
144,969 |
|
|
|
(3.6 |
%) |
Advisory |
|
|
87,875 |
|
|
|
199,556 |
|
|
|
(56.0 |
%) |
|
|
151,063 |
|
|
|
(41.8 |
%) |
|
|
238,938 |
|
|
|
380,952 |
|
|
|
(37.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment banking |
|
|
166,825 |
|
|
|
271,075 |
|
|
|
(38.5 |
%) |
|
|
211,879 |
|
|
|
(21.3 |
%) |
|
|
378,704 |
|
|
|
525,921 |
|
|
|
(28.0 |
%) |
Asset management |
|
|
320,264 |
|
|
|
331,264 |
|
|
|
(3.3 |
%) |
|
|
315,569 |
|
|
|
1.5 |
% |
|
|
635,833 |
|
|
|
672,900 |
|
|
|
(5.5 |
%) |
Other income |
|
|
894 |
|
|
|
(1,917 |
) |
|
|
146.6 |
% |
|
|
(2,293 |
) |
|
|
139.0 |
% |
|
|
(1,399 |
) |
|
|
6,971 |
|
|
|
(120.1 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues |
|
|
759,041 |
|
|
|
912,706 |
|
|
|
(16.8 |
%) |
|
|
810,227 |
|
|
|
(6.3 |
%) |
|
|
1,569,268 |
|
|
|
1,873,255 |
|
|
|
(16.2 |
%) |
Interest revenue |
|
|
482,770 |
|
|
|
212,754 |
|
|
|
126.9 |
% |
|
|
451,564 |
|
|
|
6.9 |
% |
|
|
934,334 |
|
|
|
378,189 |
|
|
|
147.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
1,241,811 |
|
|
|
1,125,460 |
|
|
|
10.3 |
% |
|
|
1,261,791 |
|
|
|
(1.6 |
%) |
|
|
2,503,602 |
|
|
|
2,251,444 |
|
|
|
11.2 |
% |
Interest expense |
|
|
191,090 |
|
|
|
17,334 |
|
|
|
nm |
|
|
|
154,998 |
|
|
|
23.3 |
% |
|
|
346,088 |
|
|
|
26,791 |
|
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
1,050,721 |
|
|
|
1,108,126 |
|
|
|
(5.2 |
%) |
|
|
1,106,793 |
|
|
|
(5.1 |
%) |
|
|
2,157,514 |
|
|
|
2,224,653 |
|
|
|
(3.0 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
615,667 |
|
|
|
652,709 |
|
|
|
(5.7 |
%) |
|
|
651,190 |
|
|
|
(5.5 |
%) |
|
|
1,266,857 |
|
|
|
1,326,400 |
|
|
|
(4.5 |
%) |
Occupancy and equipment rental |
|
|
84,604 |
|
|
|
78,251 |
|
|
|
8.1 |
% |
|
|
82,140 |
|
|
|
3.0 |
% |
|
|
166,744 |
|
|
|
155,277 |
|
|
|
7.4 |
% |
Communication and office supplies |
|
|
44,969 |
|
|
|
43,645 |
|
|
|
3.0 |
% |
|
|
46,136 |
|
|
|
(2.5 |
%) |
|
|
91,105 |
|
|
|
86,101 |
|
|
|
5.8 |
% |
Commissions and floor brokerage |
|
|
14,112 |
|
|
|
15,106 |
|
|
|
(6.6 |
%) |
|
|
14,440 |
|
|
|
(2.3 |
%) |
|
|
28,552 |
|
|
|
30,993 |
|
|
|
(7.9 |
%) |
Provision for credit losses |
|
|
7,824 |
|
|
|
12,785 |
|
|
|
(38.8 |
%) |
|
|
4,920 |
|
|
|
59.0 |
% |
|
|
12,744 |
|
|
|
21,025 |
|
|
|
(39.4 |
%) |
Other operating expenses |
|
|
102,160 |
|
|
|
87,089 |
|
|
|
17.3 |
% |
|
|
98,084 |
|
|
|
4.2 |
% |
|
|
200,244 |
|
|
|
159,207 |
|
|
|
25.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest expenses |
|
|
869,336 |
|
|
|
889,585 |
|
|
|
(2.3 |
%) |
|
|
896,910 |
|
|
|
(3.1 |
%) |
|
|
1,766,246 |
|
|
|
1,779,003 |
|
|
|
(0.7 |
%) |
Income before income taxes |
|
|
181,385 |
|
|
|
218,541 |
|
|
|
(17.0 |
%) |
|
|
209,883 |
|
|
|
(13.6 |
%) |
|
|
391,268 |
|
|
|
445,650 |
|
|
|
(12.2 |
%) |
Provision for income taxes |
|
|
47,033 |
|
|
|
57,725 |
|
|
|
(18.5 |
%) |
|
|
52,344 |
|
|
|
(10.1 |
%) |
|
|
99,377 |
|
|
|
111,285 |
|
|
|
(10.7 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
134,352 |
|
|
|
160,816 |
|
|
|
(16.5 |
%) |
|
|
157,539 |
|
|
|
(14.7 |
%) |
|
|
291,891 |
|
|
|
334,365 |
|
|
|
(12.7 |
%) |
Preferred dividends |
|
|
9,320 |
|
|
|
9,321 |
|
|
|
(0.0 |
%) |
|
|
9,320 |
|
|
|
0.0 |
% |
|
|
18,640 |
|
|
|
18,641 |
|
|
|
(0.0 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders |
|
$ |
125,032 |
|
|
$ |
151,495 |
|
|
|
(17.5 |
%) |
|
$ |
148,219 |
|
|
|
(15.6 |
%) |
|
$ |
273,251 |
|
|
$ |
315,724 |
|
|
|
(13.5 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.16 |
|
|
$ |
1.39 |
|
|
|
(16.5 |
%) |
|
$ |
1.36 |
|
|
|
(14.7 |
%) |
|
$ |
2.52 |
|
|
$ |
2.89 |
|
|
|
(12.8 |
%) |
Diluted |
|
$ |
1.10 |
|
|
$ |
1.29 |
|
|
|
(14.7 |
%) |
|
$ |
1.28 |
|
|
|
(14.1 |
%) |
|
$ |
2.38 |
|
|
$ |
2.68 |
|
|
|
(11.2 |
%) |
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
107,944 |
|
|
|
109,083 |
|
|
|
(1.0 |
%) |
|
|
108,754 |
|
|
|
(0.7 |
%) |
|
|
108,360 |
|
|
|
109,144 |
|
|
|
(0.7 |
%) |
Diluted |
|
|
113,864 |
|
|
|
117,400 |
|
|
|
(3.0 |
%) |
|
|
115,390 |
|
|
|
(1.3 |
%) |
|
|
114,658 |
|
|
|
117,838 |
|
|
|
(2.7 |
%) |
Cash dividends declared per common share |
|
$ |
0.36 |
|
|
$ |
0.30 |
|
|
|
20.0 |
% |
|
$ |
0.36 |
|
|
|
0.0 |
% |
|
$ |
0.72 |
|
|
$ |
0.60 |
|
|
|
20.0 |
% |
|
|
|
Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2023 Earnings Release |
|
Page 3 of 18 |
Non-GAAP Consolidated Results of
Operations (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
(Unaudited, 000s, except per share information) |
|
6/30/2023 |
|
|
6/30/2022 |
|
|
% Change |
|
|
3/31/2023 |
|
|
% Change |
|
|
6/30/2023 |
|
|
6/30/2022 |
|
|
% Change |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions |
|
$ |
165,358 |
|
|
$ |
186,681 |
|
|
|
(11.4 |
%) |
|
$ |
169,550 |
|
|
|
(2.5 |
%) |
|
$ |
334,908 |
|
|
$ |
382,590 |
|
|
|
(12.5 |
%) |
Principal transactions |
|
|
105,700 |
|
|
|
125,603 |
|
|
|
(15.8 |
%) |
|
|
115,522 |
|
|
|
(8.5 |
%) |
|
|
221,222 |
|
|
|
284,873 |
|
|
|
(22.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactional revenues |
|
|
271,058 |
|
|
|
312,284 |
|
|
|
(13.2 |
%) |
|
|
285,072 |
|
|
|
(4.9 |
%) |
|
|
556,130 |
|
|
|
667,463 |
|
|
|
(16.7 |
%) |
Capital raising |
|
|
78,950 |
|
|
|
71,519 |
|
|
|
10.4 |
% |
|
|
60,816 |
|
|
|
29.8 |
% |
|
|
139,766 |
|
|
|
144,969 |
|
|
|
(3.6 |
%) |
Advisory |
|
|
87,875 |
|
|
|
199,556 |
|
|
|
(56.0 |
%) |
|
|
151,063 |
|
|
|
(41.8 |
%) |
|
|
238,938 |
|
|
|
380,952 |
|
|
|
(37.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment banking |
|
|
166,825 |
|
|
|
271,075 |
|
|
|
(38.5 |
%) |
|
|
211,879 |
|
|
|
(21.3 |
%) |
|
|
378,704 |
|
|
|
525,921 |
|
|
|
(28.0 |
%) |
Asset management |
|
|
320,264 |
|
|
|
331,264 |
|
|
|
(3.3 |
%) |
|
|
315,569 |
|
|
|
1.5 |
% |
|
|
635,833 |
|
|
|
672,900 |
|
|
|
(5.5 |
%) |
Other income |
|
|
894 |
|
|
|
(1,917 |
) |
|
|
146.6 |
% |
|
|
(2,293 |
) |
|
|
139.0 |
% |
|
|
(1,399 |
) |
|
|
6,971 |
|
|
|
(120.1 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues |
|
|
759,041 |
|
|
|
912,706 |
|
|
|
(16.8 |
%) |
|
|
810,227 |
|
|
|
(6.3 |
%) |
|
|
1,569,268 |
|
|
|
1,873,255 |
|
|
|
(16.2 |
%) |
Interest revenue |
|
|
482,770 |
|
|
|
212,754 |
|
|
|
126.9 |
% |
|
|
451,564 |
|
|
|
6.9 |
% |
|
|
934,334 |
|
|
|
378,189 |
|
|
|
147.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
1,241,811 |
|
|
|
1,125,460 |
|
|
|
10.3 |
% |
|
|
1,261,791 |
|
|
|
(1.6 |
%) |
|
|
2,503,602 |
|
|
|
2,251,444 |
|
|
|
11.2 |
% |
Interest expense |
|
|
191,090 |
|
|
|
17,333 |
|
|
|
nm |
|
|
|
155,001 |
|
|
|
23.3 |
% |
|
|
346,091 |
|
|
|
26,730 |
|
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
1,050,721 |
|
|
|
1,108,127 |
|
|
|
(5.2 |
%) |
|
|
1,106,790 |
|
|
|
(5.1 |
%) |
|
|
2,157,511 |
|
|
|
2,224,714 |
|
|
|
(3.0 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
609,144 |
|
|
|
643,535 |
|
|
|
(5.3 |
%) |
|
|
641,937 |
|
|
|
(5.1 |
%) |
|
|
1,251,081 |
|
|
|
1,307,915 |
|
|
|
(4.3 |
%) |
Occupancy and equipment rental |
|
|
84,579 |
|
|
|
77,884 |
|
|
|
8.6 |
% |
|
|
82,039 |
|
|
|
3.1 |
% |
|
|
166,618 |
|
|
|
154,893 |
|
|
|
7.6 |
% |
Communication and office supplies |
|
|
44,965 |
|
|
|
43,621 |
|
|
|
3.1 |
% |
|
|
46,134 |
|
|
|
(2.5 |
%) |
|
|
91,099 |
|
|
|
86,069 |
|
|
|
5.8 |
% |
Commissions and floor brokerage |
|
|
14,112 |
|
|
|
15,106 |
|
|
|
(6.6 |
%) |
|
|
14,440 |
|
|
|
(2.3 |
%) |
|
|
28,552 |
|
|
|
30,993 |
|
|
|
(7.9 |
%) |
Provision for credit losses |
|
|
7,824 |
|
|
|
12,785 |
|
|
|
(38.8 |
%) |
|
|
4,920 |
|
|
|
59.0 |
% |
|
|
12,744 |
|
|
|
21,025 |
|
|
|
(39.4 |
%) |
Other operating expenses |
|
|
93,568 |
|
|
|
79,864 |
|
|
|
17.2 |
% |
|
|
90,051 |
|
|
|
3.9 |
% |
|
|
183,619 |
|
|
|
146,525 |
|
|
|
25.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest expenses |
|
|
854,192 |
|
|
|
872,795 |
|
|
|
(2.1 |
%) |
|
|
879,521 |
|
|
|
(2.9 |
%) |
|
|
1,733,713 |
|
|
|
1,747,420 |
|
|
|
(0.8 |
%) |
Income before income taxes |
|
|
196,529 |
|
|
|
235,332 |
|
|
|
(16.5 |
%) |
|
|
227,269 |
|
|
|
(13.5 |
%) |
|
|
423,798 |
|
|
|
477,294 |
|
|
|
(11.2 |
%) |
Provision for income taxes |
|
|
50,953 |
|
|
|
62,158 |
|
|
|
(18.0 |
%) |
|
|
56,681 |
|
|
|
(10.1 |
%) |
|
|
107,634 |
|
|
|
119,213 |
|
|
|
(9.7 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
145,576 |
|
|
|
173,174 |
|
|
|
(15.9 |
%) |
|
|
170,588 |
|
|
|
(14.7 |
%) |
|
|
316,164 |
|
|
|
358,081 |
|
|
|
(11.7 |
%) |
Preferred dividends |
|
|
9,320 |
|
|
|
9,321 |
|
|
|
(0.0 |
%) |
|
|
9,320 |
|
|
|
0.0 |
% |
|
|
18,640 |
|
|
|
18,641 |
|
|
|
(0.0 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders |
|
$ |
136,256 |
|
|
$ |
163,853 |
|
|
|
(16.8 |
%) |
|
$ |
161,268 |
|
|
|
(15.5 |
%) |
|
$ |
297,524 |
|
|
$ |
339,440 |
|
|
|
(12.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.26 |
|
|
$ |
1.50 |
|
|
|
(16.0 |
%) |
|
$ |
1.48 |
|
|
|
(14.9 |
%) |
|
$ |
2.75 |
|
|
$ |
3.11 |
|
|
|
(11.6 |
%) |
Diluted |
|
$ |
1.20 |
|
|
$ |
1.40 |
|
|
|
(14.3 |
%) |
|
$ |
1.40 |
|
|
|
(14.3 |
%) |
|
$ |
2.59 |
|
|
$ |
2.88 |
|
|
|
(10.1 |
%) |
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
107,944 |
|
|
|
109,083 |
|
|
|
(1.0 |
%) |
|
|
108,754 |
|
|
|
(0.7 |
%) |
|
|
108,360 |
|
|
|
109,144 |
|
|
|
(0.7 |
%) |
Diluted |
|
|
113,864 |
|
|
|
117,400 |
|
|
|
(3.0 |
%) |
|
|
115,390 |
|
|
|
(1.3 |
%) |
|
|
114,658 |
|
|
|
117,838 |
|
|
|
(2.7 |
%) |
Cash dividends declared per common share |
|
$ |
0.36 |
|
|
$ |
0.30 |
|
|
|
20.0 |
% |
|
$ |
0.36 |
|
|
|
0.0 |
% |
|
$ |
0.72 |
|
|
$ |
0.60 |
|
|
|
20.0 |
% |
|
|
|
Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2023 Earnings Release |
|
Page 4 of 18 |
Consolidated Financial Summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
(Unaudited, 000s) |
|
6/30/2023 |
|
|
6/30/2022 |
|
|
% Change |
|
|
3/31/2023 |
|
|
% Change |
|
|
6/30/2023 |
|
|
6/30/2022 |
|
|
% Change |
|
Net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Wealth Management |
|
$ |
758,190 |
|
|
$ |
697,980 |
|
|
|
8.6 |
% |
|
$ |
757,186 |
|
|
|
0.1 |
% |
|
$ |
1,515,376 |
|
|
$ |
1,379,705 |
|
|
|
9.8 |
% |
Institutional Group |
|
|
276,244 |
|
|
|
411,364 |
|
|
|
(32.8 |
%) |
|
|
332,613 |
|
|
|
(16.9 |
%) |
|
|
608,857 |
|
|
|
842,727 |
|
|
|
(27.8 |
%) |
Other |
|
|
16,287 |
|
|
|
(1,218 |
) |
|
|
nm |
|
|
|
16,994 |
|
|
|
(4.2 |
%) |
|
|
33,281 |
|
|
|
2,221 |
|
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net revenues |
|
$ |
1,050,721 |
|
|
$ |
1,108,126 |
|
|
|
(5.2 |
%) |
|
$ |
1,106,793 |
|
|
|
(5.1 |
%) |
|
$ |
2,157,514 |
|
|
$ |
2,224,653 |
|
|
|
(3.0 |
%) |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Wealth Management |
|
$ |
458,286 |
|
|
$ |
452,828 |
|
|
|
1.2 |
% |
|
$ |
441,077 |
|
|
|
3.9 |
% |
|
$ |
899,363 |
|
|
$ |
909,140 |
|
|
|
(1.1 |
%) |
Institutional Group |
|
|
289,139 |
|
|
|
338,372 |
|
|
|
(14.5 |
%) |
|
|
298,893 |
|
|
|
(3.3 |
%) |
|
|
588,032 |
|
|
|
673,107 |
|
|
|
(12.6 |
%) |
Other |
|
|
121,911 |
|
|
|
98,385 |
|
|
|
23.9 |
% |
|
|
156,940 |
|
|
|
(22.3 |
%) |
|
|
278,851 |
|
|
|
196,756 |
|
|
|
41.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
$ |
869,336 |
|
|
$ |
889,585 |
|
|
|
(2.3 |
%) |
|
$ |
896,910 |
|
|
|
(3.1 |
%) |
|
$ |
1,766,246 |
|
|
$ |
1,779,003 |
|
|
|
(0.7 |
%) |
Operating contribution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Wealth Management |
|
$ |
299,904 |
|
|
$ |
245,152 |
|
|
|
22.3 |
% |
|
$ |
316,109 |
|
|
|
(5.1 |
%) |
|
$ |
616,013 |
|
|
$ |
470,565 |
|
|
|
30.9 |
% |
Institutional Group |
|
|
(12,895 |
) |
|
|
72,992 |
|
|
|
(117.7 |
%) |
|
|
33,720 |
|
|
|
(138.2 |
%) |
|
|
20,825 |
|
|
|
169,620 |
|
|
|
(87.7 |
%) |
Other |
|
|
(105,624 |
) |
|
|
(99,603 |
) |
|
|
6.0 |
% |
|
|
(139,946 |
) |
|
|
(24.5 |
%) |
|
|
(245,570 |
) |
|
|
(194,535 |
) |
|
|
26.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
$ |
181,385 |
|
|
$ |
218,541 |
|
|
|
(17.0 |
%) |
|
$ |
209,883 |
|
|
|
(13.6 |
%) |
|
$ |
391,268 |
|
|
$ |
445,650 |
|
|
|
(12.2 |
%) |
Financial ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
58.6 |
% |
|
|
58.9 |
% |
|
|
(30 |
) |
|
|
58.8 |
% |
|
|
(20 |
) |
|
|
58.7 |
% |
|
|
59.6 |
% |
|
|
(90 |
) |
Non-compensation operating expenses |
|
|
24.1 |
% |
|
|
21.4 |
% |
|
|
270 |
|
|
|
22.2 |
% |
|
|
190 |
|
|
|
23.2 |
% |
|
|
20.4 |
% |
|
|
280 |
|
Income before income taxes |
|
|
17.3 |
% |
|
|
19.7 |
% |
|
|
(240 |
) |
|
|
19.0 |
% |
|
|
(170 |
) |
|
|
18.1 |
% |
|
|
20.0 |
% |
|
|
(190 |
) |
Effective tax rate |
|
|
25.9 |
% |
|
|
26.4 |
% |
|
|
(50 |
) |
|
|
24.9 |
% |
|
|
100 |
|
|
|
25.4 |
% |
|
|
25.0 |
% |
|
|
40 |
|
|
|
|
Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2023 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) |
|
6/30/2023 |
|
|
6/30/2022 |
|
|
% Change |
|
|
3/31/2023 |
|
|
% Change |
|
Financial Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
37,298,239 |
|
|
$ |
36,476,441 |
|
|
|
2.3 |
% |
|
$ |
38,597,653 |
|
|
|
(3.4 |
%) |
Total shareholders equity |
|
$ |
5,342,987 |
|
|
$ |
5,124,737 |
|
|
|
4.3 |
% |
|
$ |
5,327,392 |
|
|
|
0.3 |
% |
Total common equity |
|
$ |
4,657,987 |
|
|
$ |
4,439,737 |
|
|
|
4.9 |
% |
|
$ |
4,642,392 |
|
|
|
0.3 |
% |
Goodwill and intangible assets |
|
$ |
(1,509,431 |
) |
|
$ |
(1,444,158 |
) |
|
|
4.5 |
% |
|
$ |
(1,512,400 |
) |
|
|
(0.2 |
%) |
DTL on goodwill and intangible assets |
|
$ |
65,651 |
|
|
$ |
58,731 |
|
|
|
11.8 |
% |
|
$ |
63,455 |
|
|
|
3.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity |
|
$ |
3,214,207 |
|
|
$ |
3,054,310 |
|
|
|
5.2 |
% |
|
$ |
3,193,447 |
|
|
|
0.7 |
% |
Preferred equity |
|
$ |
685,000 |
|
|
$ |
685,000 |
|
|
|
0.0 |
% |
|
$ |
685,000 |
|
|
|
0.0 |
% |
Financial Metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share (2) |
|
$ |
44.41 |
|
|
$ |
41.82 |
|
|
|
6.2 |
% |
|
$ |
43.73 |
|
|
|
1.6 |
% |
Tangible book value per common share (2) |
|
$ |
30.64 |
|
|
$ |
28.77 |
|
|
|
6.5 |
% |
|
$ |
30.08 |
|
|
|
1.9 |
% |
Return on common equity (3) |
|
|
10.7 |
% |
|
|
13.7 |
% |
|
|
|
|
|
|
12.7 |
% |
|
|
|
|
Non-GAAP return on common equity (1)(3) |
|
|
11.6 |
% |
|
|
14.8 |
% |
|
|
|
|
|
|
13.9 |
% |
|
|
|
|
Return on tangible common equity (4) |
|
|
15.5 |
% |
|
|
20.0 |
% |
|
|
|
|
|
|
18.3 |
% |
|
|
|
|
Non-GAAP return on tangible common equity
(1)(4) |
|
|
16.8 |
% |
|
|
21.6 |
% |
|
|
|
|
|
|
19.9 |
% |
|
|
|
|
Pre-tax margin on net revenues |
|
|
17.3 |
% |
|
|
19.7 |
% |
|
|
|
|
|
|
19.0 |
% |
|
|
|
|
Non-GAAP
pre-tax margin on net revenues (1) |
|
|
18.7 |
% |
|
|
21.2 |
% |
|
|
|
|
|
|
20.5 |
% |
|
|
|
|
Effective tax rate |
|
|
25.9 |
% |
|
|
26.4 |
% |
|
|
|
|
|
|
24.9 |
% |
|
|
|
|
Non-GAAP effective tax rate (1) |
|
|
25.9 |
% |
|
|
26.4 |
% |
|
|
|
|
|
|
24.9 |
% |
|
|
|
|
|
|
|
Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2023 Earnings Release |
|
Page 6 of 18 |
Regulatory Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, 000s) |
|
6/30/2023 |
|
|
6/30/2022 |
|
|
% Change |
|
|
3/31/2023 |
|
|
% Change |
|
SF Regulatory Capital (5): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital |
|
$ |
3,314,189 |
|
|
$ |
3,151,794 |
|
|
|
5.2 |
% |
|
$ |
3,280,309 |
|
|
|
1.0 |
% |
Tier 1 capital |
|
$ |
3,999,189 |
|
|
$ |
3,836,794 |
|
|
|
4.2 |
% |
|
$ |
3,965,309 |
|
|
|
0.9 |
% |
Risk-weighted assets |
|
$ |
23,164,622 |
|
|
$ |
21,281,241 |
|
|
|
8.8 |
% |
|
$ |
23,533,555 |
|
|
|
(1.6 |
%) |
Common equity tier 1 capital ratio |
|
|
14.3 |
% |
|
|
14.8 |
% |
|
|
|
|
|
|
13.9 |
% |
|
|
|
|
Tier 1 risk based capital ratio |
|
|
17.3 |
% |
|
|
18.0 |
% |
|
|
|
|
|
|
16.8 |
% |
|
|
|
|
Tier 1 leverage capital ratio |
|
|
11.1 |
% |
|
|
11.2 |
% |
|
|
|
|
|
|
10.9 |
% |
|
|
|
|
Stifel Bank & Trust Regulatory Capital (5): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital |
|
$ |
1,513,202 |
|
|
$ |
1,482,526 |
|
|
|
2.1 |
% |
|
$ |
1,590,068 |
|
|
|
(4.8 |
%) |
Tier 1 capital |
|
$ |
1,513,202 |
|
|
$ |
1,482,526 |
|
|
|
2.1 |
% |
|
$ |
1,590,068 |
|
|
|
(4.8 |
%) |
Risk-weighted assets |
|
$ |
13,967,711 |
|
|
$ |
13,783,486 |
|
|
|
1.3 |
% |
|
$ |
14,462,065 |
|
|
|
(3.4 |
%) |
Common equity tier 1 capital ratio |
|
|
10.8 |
% |
|
|
10.8 |
% |
|
|
|
|
|
|
11.0 |
% |
|
|
|
|
Tier 1 risk based capital ratio |
|
|
10.8 |
% |
|
|
10.8 |
% |
|
|
|
|
|
|
11.0 |
% |
|
|
|
|
Tier 1 leverage capital ratio |
|
|
7.5 |
% |
|
|
7.1 |
% |
|
|
|
|
|
|
7.5 |
% |
|
|
|
|
Stifel Bank Regulatory Capital (5): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital |
|
$ |
639,967 |
|
|
$ |
346,827 |
|
|
|
84.5 |
% |
|
$ |
596,152 |
|
|
|
7.3 |
% |
Tier 1 capital |
|
$ |
639,967 |
|
|
$ |
346,827 |
|
|
|
84.5 |
% |
|
$ |
596,152 |
|
|
|
7.3 |
% |
Risk-weighted assets |
|
$ |
5,145,958 |
|
|
$ |
2,970,926 |
|
|
|
73.2 |
% |
|
$ |
4,548,287 |
|
|
|
13.1 |
% |
Common equity tier 1 capital ratio |
|
|
12.4 |
% |
|
|
11.7 |
% |
|
|
|
|
|
|
13.1 |
% |
|
|
|
|
Tier 1 risk based capital ratio |
|
|
12.4 |
% |
|
|
11.7 |
% |
|
|
|
|
|
|
13.1 |
% |
|
|
|
|
Tier 1 leverage capital ratio |
|
|
7.1 |
% |
|
|
7.2 |
% |
|
|
|
|
|
|
7.5 |
% |
|
|
|
|
Stifel Net Capital (5): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net capital |
|
$ |
456,500 |
|
|
$ |
627,100 |
|
|
|
(27.2 |
%) |
|
$ |
514,500 |
|
|
|
(11.3 |
%) |
Excess net capital |
|
$ |
433,900 |
|
|
$ |
596,500 |
|
|
|
(27.3 |
%) |
|
$ |
491,500 |
|
|
|
(11.7 |
%) |
|
|
|
Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2023 Earnings Release |
|
Page 7 of 18 |
Global Wealth Management - Summary Results of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
(Unaudited, 000s) |
|
6/30/2023 |
|
|
6/30/2022 |
|
|
% Change |
|
|
3/31/2023 |
|
|
% Change |
|
|
6/30/2023 |
|
|
6/30/2022 |
|
|
% Change |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions |
|
$ |
109,836 |
|
|
$ |
122,004 |
|
|
|
(10.0 |
%) |
|
$ |
110,191 |
|
|
|
(0.3 |
%) |
|
$ |
220,027 |
|
|
$ |
252,780 |
|
|
|
(13.0 |
%) |
Principal transactions |
|
|
48,122 |
|
|
|
48,466 |
|
|
|
(0.7 |
%) |
|
|
51,064 |
|
|
|
(5.8 |
%) |
|
|
99,186 |
|
|
|
94,010 |
|
|
|
5.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactional revenues |
|
|
157,958 |
|
|
|
170,470 |
|
|
|
(7.3 |
%) |
|
|
161,255 |
|
|
|
(2.0 |
%) |
|
|
319,213 |
|
|
|
346,790 |
|
|
|
(8.0 |
%) |
Asset management |
|
|
320,238 |
|
|
|
331,243 |
|
|
|
(3.3 |
%) |
|
|
315,537 |
|
|
|
1.5 |
% |
|
|
635,775 |
|
|
|
672,856 |
|
|
|
(5.5 |
%) |
Net interest |
|
|
277,345 |
|
|
|
195,828 |
|
|
|
41.6 |
% |
|
|
281,932 |
|
|
|
(1.6 |
%) |
|
|
559,277 |
|
|
|
352,588 |
|
|
|
58.6 |
% |
Investment banking (6) |
|
|
4,065 |
|
|
|
5,056 |
|
|
|
(19.6 |
%) |
|
|
4,158 |
|
|
|
(2.2 |
%) |
|
|
8,223 |
|
|
|
10,203 |
|
|
|
(19.4 |
%) |
Other income |
|
|
(1,416 |
) |
|
|
(4,617 |
) |
|
|
69.3 |
% |
|
|
(5,696 |
) |
|
|
75.1 |
% |
|
|
(7,112 |
) |
|
|
(2,732 |
) |
|
|
(160.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
758,190 |
|
|
|
697,980 |
|
|
|
8.6 |
% |
|
|
757,186 |
|
|
|
0.1 |
% |
|
|
1,515,376 |
|
|
|
1,379,705 |
|
|
|
9.8 |
% |
Non-interest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
354,086 |
|
|
|
349,368 |
|
|
|
1.4 |
% |
|
|
342,423 |
|
|
|
3.4 |
% |
|
|
696,509 |
|
|
|
714,361 |
|
|
|
(2.5 |
%) |
Non-compensation operating expenses |
|
|
104,200 |
|
|
|
103,460 |
|
|
|
0.7 |
% |
|
|
98,654 |
|
|
|
5.6 |
% |
|
|
202,854 |
|
|
|
194,779 |
|
|
|
4.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest expenses |
|
|
458,286 |
|
|
|
452,828 |
|
|
|
1.2 |
% |
|
|
441,077 |
|
|
|
3.9 |
% |
|
|
899,363 |
|
|
|
909,140 |
|
|
|
(1.1 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
$ |
299,904 |
|
|
$ |
245,152 |
|
|
|
22.3 |
% |
|
$ |
316,109 |
|
|
|
(5.1 |
%) |
|
$ |
616,013 |
|
|
$ |
470,565 |
|
|
|
30.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percentage of net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
46.7 |
% |
|
|
50.1 |
% |
|
|
(340 |
) |
|
|
45.2 |
% |
|
|
150 |
|
|
|
46.0 |
% |
|
|
51.8 |
% |
|
|
(580 |
) |
Non-compensation operating expenses |
|
|
13.7 |
% |
|
|
14.8 |
% |
|
|
(110 |
) |
|
|
13.1 |
% |
|
|
60 |
|
|
|
13.3 |
% |
|
|
14.1 |
% |
|
|
(80 |
) |
Income before income taxes |
|
|
39.6 |
% |
|
|
35.1 |
% |
|
|
450 |
|
|
|
41.7 |
% |
|
|
(210 |
) |
|
|
40.7 |
% |
|
|
34.1 |
% |
|
|
660 |
|
|
|
|
Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2023 Earnings Release |
|
Page 8 of 18 |
Global Wealth Management - Statistical Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Three Months Ended |
|
(Unaudited, 000s, except financial advisors) |
|
6/30/2023 |
|
|
6/30/2022 |
|
|
% Change |
|
|
3/31/2023 |
|
|
% Change |
|
Financial advisors (including independent contractors) (7) |
|
|
2,369 |
|
|
|
2,330 |
|
|
|
1.7 |
% |
|
|
2,350 |
|
|
|
0.8 |
% |
Total client assets |
|
$ |
417,669,000 |
|
|
$ |
377,591,000 |
|
|
|
10.6 |
% |
|
$ |
405,988,000 |
|
|
|
2.9 |
% |
Fee-based client assets |
|
$ |
154,538,000 |
|
|
$ |
141,223,000 |
|
|
|
9.4 |
% |
|
$ |
149,541,000 |
|
|
|
3.3 |
% |
Transactional assets |
|
$ |
263,131,000 |
|
|
$ |
236,368,000 |
|
|
|
11.3 |
% |
|
$ |
256,447,000 |
|
|
|
2.6 |
% |
Secured client lending (8) |
|
$ |
3,163,000 |
|
|
$ |
4,045,000 |
|
|
|
(21.8 |
%) |
|
$ |
3,393,000 |
|
|
|
(6.8 |
%) |
Asset Management Revenue (000s): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private Client Group (9) |
|
$ |
266,510 |
|
|
$ |
282,207 |
|
|
|
(5.6 |
%) |
|
$ |
259,491 |
|
|
|
2.7 |
% |
Asset Management |
|
|
33,154 |
|
|
|
32,511 |
|
|
|
2.0 |
% |
|
|
32,241 |
|
|
|
2.8 |
% |
Third-party Bank Sweep Program |
|
|
7,452 |
|
|
|
3,841 |
|
|
|
94.0 |
% |
|
|
11,261 |
|
|
|
(33.8 |
%) |
Other (10) |
|
|
13,148 |
|
|
|
12,705 |
|
|
|
3.5 |
% |
|
|
12,576 |
|
|
|
4.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total asset management revenues |
|
$ |
320,264 |
|
|
$ |
331,264 |
|
|
|
(3.3 |
%) |
|
$ |
315,569 |
|
|
|
1.5 |
% |
Fee-based Assets (millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private Client Group (9) |
|
$ |
135,606 |
|
|
$ |
123,832 |
|
|
|
9.5 |
% |
|
$ |
131,483 |
|
|
|
3.1 |
% |
Asset Management |
|
|
34,766 |
|
|
|
31,288 |
|
|
|
11.1 |
% |
|
|
33,409 |
|
|
|
4.1 |
% |
Elimination (11) |
|
|
(15,834 |
) |
|
|
(13,897 |
) |
|
|
13.9 |
% |
|
|
(15,351 |
) |
|
|
3.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total fee-based assets |
|
$ |
154,538 |
|
|
$ |
141,223 |
|
|
|
9.4 |
% |
|
$ |
149,541 |
|
|
|
3.3 |
% |
Third-party Bank Sweep Program |
|
$ |
657 |
|
|
$ |
1,666 |
|
|
|
(60.6 |
%) |
|
$ |
915 |
|
|
|
(28.2 |
%) |
ROA (bps) (12): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private Client Group (9) |
|
|
81.1 |
|
|
|
81.7 |
|
|
|
|
|
|
|
82.3 |
|
|
|
|
|
Asset Management |
|
|
38.1 |
|
|
|
41.6 |
|
|
|
|
|
|
|
38.6 |
|
|
|
|
|
Third-party Bank Sweep Program |
|
|
362.3 |
|
|
|
41.3 |
|
|
|
|
|
|
|
303.9 |
|
|
|
|
|
Stifel Bancorp Deposits (millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweep Deposits |
|
$ |
12,293 |
|
|
$ |
23,804 |
|
|
|
(48.4 |
%) |
|
$ |
14,057 |
|
|
|
(12.5 |
%) |
Smart Rate Deposits |
|
|
11,858 |
|
|
|
929 |
|
|
|
nm |
|
|
|
10,778 |
|
|
|
10.0 |
% |
Direct Wealth Management Deposits at Stifel Bancorp |
|
|
319 |
|
|
|
20 |
|
|
|
nm |
|
|
|
189 |
|
|
|
68.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Stifel Bancorp Wealth Management Deposits |
|
|
24,470 |
|
|
|
24,753 |
|
|
|
(1.1 |
%) |
|
|
25,024 |
|
|
|
(2.2 |
%) |
Other Bank Deposits |
|
|
2,535 |
|
|
|
1,256 |
|
|
|
101.8 |
% |
|
|
3,301 |
|
|
|
(23.2 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Stifel Bancorp Deposits |
|
$ |
27,005 |
|
|
$ |
26,009 |
|
|
|
3.8 |
% |
|
$ |
28,325 |
|
|
|
(4.7 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term Treasuries (millions) (13) |
|
$ |
7,104 |
|
|
$ |
2,048 |
|
|
|
246.9 |
% |
|
$ |
6,617 |
|
|
|
7.4 |
% |
Wealth Management Cash (millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stifel Bancorp Wealth Management Deposits |
|
$ |
24,470 |
|
|
$ |
24,753 |
|
|
|
(1.1 |
%) |
|
$ |
25,024 |
|
|
|
(2.2 |
%) |
Third-party Bank Sweep Program |
|
|
657 |
|
|
|
1,666 |
|
|
|
(60.6 |
%) |
|
|
915 |
|
|
|
(28.2 |
%) |
Other Sweep Cash |
|
|
284 |
|
|
|
360 |
|
|
|
(21.1 |
%) |
|
|
252 |
|
|
|
12.7 |
% |
Money Market Mutual Funds |
|
|
8,034 |
|
|
|
5,860 |
|
|
|
37.1 |
% |
|
|
7,434 |
|
|
|
8.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Wealth Management Cash |
|
$ |
33,445 |
|
|
$ |
32,639 |
|
|
|
2.5 |
% |
|
$ |
33,625 |
|
|
|
(0.5 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2023 Earnings Release |
|
Page 9 of 18 |
Institutional Group - Summary Results of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
(Unaudited, 000s) |
|
6/30/2023 |
|
|
6/30/2022 |
|
|
% Change |
|
|
3/31/2023 |
|
|
% Change |
|
|
6/30/2023 |
|
|
6/30/2022 |
|
|
% Change |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions |
|
$ |
55,522 |
|
|
$ |
64,677 |
|
|
|
(14.2 |
%) |
|
$ |
59,359 |
|
|
|
(6.5 |
%) |
|
$ |
114,881 |
|
|
$ |
129,810 |
|
|
|
(11.5 |
%) |
Principal transactions |
|
|
57,578 |
|
|
|
77,137 |
|
|
|
(25.4 |
%) |
|
|
64,458 |
|
|
|
(10.7 |
%) |
|
|
122,036 |
|
|
|
190,863 |
|
|
|
(36.1 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactional revenues |
|
|
113,100 |
|
|
|
141,814 |
|
|
|
(20.2 |
%) |
|
|
123,817 |
|
|
|
(8.7 |
%) |
|
|
236,917 |
|
|
|
320,673 |
|
|
|
(26.1 |
%) |
Capital raising |
|
|
74,886 |
|
|
|
66,463 |
|
|
|
12.7 |
% |
|
|
56,658 |
|
|
|
32.2 |
% |
|
|
131,544 |
|
|
|
134,766 |
|
|
|
(2.4 |
%) |
Advisory |
|
|
86,595 |
|
|
|
199,556 |
|
|
|
(56.6 |
%) |
|
|
151,063 |
|
|
|
(42.7 |
%) |
|
|
237,658 |
|
|
|
380,952 |
|
|
|
(37.6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment banking |
|
|
161,481 |
|
|
|
266,019 |
|
|
|
(39.3 |
%) |
|
|
207,721 |
|
|
|
(22.3 |
%) |
|
|
369,202 |
|
|
|
515,718 |
|
|
|
(28.4 |
%) |
Other income (14) |
|
|
1,663 |
|
|
|
3,531 |
|
|
|
(52.9 |
%) |
|
|
1,075 |
|
|
|
54.7 |
% |
|
|
2,738 |
|
|
|
6,336 |
|
|
|
(56.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
276,244 |
|
|
|
411,364 |
|
|
|
(32.8 |
%) |
|
|
332,613 |
|
|
|
(16.9 |
%) |
|
|
608,857 |
|
|
|
842,727 |
|
|
|
(27.8 |
%) |
Non-interest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
194,158 |
|
|
|
244,711 |
|
|
|
(20.7 |
%) |
|
|
205,905 |
|
|
|
(5.7 |
%) |
|
|
400,063 |
|
|
|
497,058 |
|
|
|
(19.5 |
%) |
Non-compensation operating expenses |
|
|
94,981 |
|
|
|
93,661 |
|
|
|
1.4 |
% |
|
|
92,988 |
|
|
|
2.1 |
% |
|
|
187,969 |
|
|
|
176,049 |
|
|
|
6.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest expenses |
|
|
289,139 |
|
|
|
338,372 |
|
|
|
(14.5 |
%) |
|
|
298,893 |
|
|
|
(3.3 |
%) |
|
|
588,032 |
|
|
|
673,107 |
|
|
|
(12.6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) before income taxes |
|
$ |
(12,895 |
) |
|
$ |
72,992 |
|
|
|
(117.7 |
%) |
|
$ |
33,720 |
|
|
|
(138.2 |
%) |
|
$ |
20,825 |
|
|
$ |
169,620 |
|
|
|
(87.7 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percentage of net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
70.3 |
% |
|
|
59.5 |
% |
|
|
1,080 |
|
|
|
61.9 |
% |
|
|
840 |
|
|
|
65.7 |
% |
|
|
59.0 |
% |
|
|
670 |
|
Non-compensation operating expenses |
|
|
34.4 |
% |
|
|
22.8 |
% |
|
|
1,160 |
|
|
|
28.0 |
% |
|
|
640 |
|
|
|
30.9 |
% |
|
|
20.9 |
% |
|
|
1,000 |
|
Income before income taxes |
|
|
(4.7 |
%) |
|
|
17.7 |
% |
|
|
(2,240 |
) |
|
|
10.1 |
% |
|
|
(1,480 |
) |
|
|
3.4 |
% |
|
|
20.1 |
% |
|
|
(1,670 |
) |
|
|
|
Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2023 Earnings Release |
|
Page 10 of 18 |
Stifel Bancorp - Financial Information and Credit Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, 000s) |
|
6/30/2023 |
|
|
6/30/2022 |
|
|
% Change |
|
|
3/31/2023 |
|
|
% Change |
|
Stifel Bancorp Financial Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
29,260,431 |
|
|
$ |
27,957,299 |
|
|
|
4.7 |
% |
|
$ |
30,701,371 |
|
|
|
(4.7 |
%) |
Total shareholders equity |
|
$ |
2,148,221 |
|
|
$ |
1,840,273 |
|
|
|
16.7 |
% |
|
$ |
2,199,821 |
|
|
|
(2.3 |
%) |
Total loans, net (includes loans held for sale) |
|
$ |
20,562,492 |
|
|
$ |
19,271,862 |
|
|
|
6.7 |
% |
|
$ |
20,935,133 |
|
|
|
(1.8 |
%) |
Residential real estate |
|
|
7,708,506 |
|
|
|
6,607,825 |
|
|
|
16.7 |
% |
|
|
7,494,788 |
|
|
|
2.9 |
% |
Commercial and industrial |
|
|
4,471,031 |
|
|
|
4,862,673 |
|
|
|
(8.1 |
%) |
|
|
4,755,664 |
|
|
|
(6.0 |
%) |
Fund banking |
|
|
4,349,541 |
|
|
|
3,484,737 |
|
|
|
24.8 |
% |
|
|
4,623,423 |
|
|
|
(5.9 |
%) |
Securities-based loans |
|
|
2,399,328 |
|
|
|
2,993,552 |
|
|
|
(19.9 |
%) |
|
|
2,558,343 |
|
|
|
(6.2 |
%) |
Commercial real estate |
|
|
677,521 |
|
|
|
629,459 |
|
|
|
7.6 |
% |
|
|
663,325 |
|
|
|
2.1 |
% |
Construction and land |
|
|
772,571 |
|
|
|
432,039 |
|
|
|
78.8 |
% |
|
|
644,800 |
|
|
|
19.8 |
% |
Other |
|
|
154,469 |
|
|
|
148,335 |
|
|
|
4.1 |
% |
|
|
159,101 |
|
|
|
(2.9 |
%) |
Loans held for sale |
|
|
224,017 |
|
|
|
288,676 |
|
|
|
(22.4 |
%) |
|
|
225,365 |
|
|
|
(0.6 |
%) |
Investment securities |
|
$ |
7,532,175 |
|
|
$ |
7,761,115 |
|
|
|
(2.9 |
%) |
|
$ |
7,607,385 |
|
|
|
(1.0 |
%) |
Available-for-sale
securities, at fair value |
|
|
1,582,418 |
|
|
|
1,879,904 |
|
|
|
(15.8 |
%) |
|
|
1,624,458 |
|
|
|
(2.6 |
%) |
Held-to-maturity
securities, at amortized cost |
|
|
5,949,757 |
|
|
|
5,881,211 |
|
|
|
1.2 |
% |
|
|
5,982,927 |
|
|
|
(0.6 |
%) |
Unrealized losses on
available-for-sale securities |
|
|
(215,038 |
) |
|
|
(173,910 |
) |
|
|
23.6 |
% |
|
|
(196,621 |
) |
|
|
9.4 |
% |
Total deposits |
|
$ |
27,004,807 |
|
|
$ |
26,009,300 |
|
|
|
3.8 |
% |
|
$ |
28,325,327 |
|
|
|
(4.7 |
%) |
Demand deposits (interest-bearing) |
|
|
26,744,730 |
|
|
|
25,670,438 |
|
|
|
4.2 |
% |
|
|
27,862,336 |
|
|
|
(4.0 |
%) |
Demand deposits (non-interest-bearing) |
|
|
260,075 |
|
|
|
319,682 |
|
|
|
(18.6 |
%) |
|
|
456,091 |
|
|
|
(43.0 |
%) |
Certificates of deposit |
|
|
2 |
|
|
|
19,180 |
|
|
|
nm |
|
|
|
6,900 |
|
|
|
nm |
|
|
|
|
|
|
|
Credit Metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
$ |
160,132 |
|
|
$ |
139,553 |
|
|
|
14.7 |
% |
|
$ |
152,906 |
|
|
|
4.7 |
% |
Allowance as a percentage of retained loans |
|
|
0.78 |
% |
|
|
0.73 |
% |
|
|
|
|
|
|
0.73 |
% |
|
|
|
|
Net charge-offs as a percentage of average loans |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
|
|
|
|
0.00 |
% |
|
|
|
|
Total nonperforming assets |
|
$ |
11,420 |
|
|
$ |
29,430 |
|
|
|
(61.2 |
%) |
|
$ |
10,749 |
|
|
|
6.2 |
% |
Nonperforming assets as a percentage of total assets |
|
|
0.04 |
% |
|
|
0.11 |
% |
|
|
|
|
|
|
0.04 |
% |
|
|
|
|
|
|
|
Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2023 Earnings Release |
|
Page 11 of 18 |
Stifel Bancorp - Loan and Investment Portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, millions) |
|
6/30/2023 |
|
|
% of Total Portfolio |
|
|
|
|
|
|
|
|
|
Loan Portfolio |
|
|
|
|
|
|
|
|
|
Commercial Portfolio by Major Sector |
|
|
|
|
|
|
|
|
Residential real estate |
|
$ |
7,709 |
|
|
|
29 |
% |
|
Industrials |
|
$ |
1,062 |
|
|
|
4 |
% |
Securities-based loans |
|
|
2,399 |
|
|
|
9 |
% |
|
Financials |
|
|
897 |
|
|
|
3 |
% |
Home equity lines of credit and other |
|
|
154 |
|
|
|
1 |
% |
|
Consumer discretionary |
|
|
605 |
|
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consumer |
|
|
10,262 |
|
|
|
38 |
% |
|
Information technology |
|
|
604 |
|
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
4,471 |
|
|
|
17 |
% |
|
Healthcare |
|
|
303 |
|
|
|
1 |
% |
Fund banking |
|
|
4,350 |
|
|
|
16 |
% |
|
Materials |
|
|
257 |
|
|
|
1 |
% |
Construction and land |
|
|
773 |
|
|
|
3 |
% |
|
REITs |
|
|
255 |
|
|
|
1 |
% |
Commercial real estate |
|
|
677 |
|
|
|
3 |
% |
|
Communication services |
|
|
184 |
|
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial |
|
|
10,271 |
|
|
|
38 |
% |
|
Hotel, leisure, restaurants |
|
|
142 |
|
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loan portfolio |
|
|
20,533 |
|
|
|
76 |
% |
|
Consumer staples |
|
|
119 |
|
|
|
0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unfunded commitments |
|
|
6,402 |
|
|
|
24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
26,935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLO by Major Sector |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High tech industries |
|
$ |
604 |
|
|
|
10 |
% |
Investment Portfolio |
|
|
|
|
|
|
|
|
|
Healthcare & pharmaceuticals |
|
|
601 |
|
|
|
10 |
% |
CLO |
|
$ |
5,919 |
|
|
|
76 |
% |
|
Services: business |
|
|
533 |
|
|
|
9 |
% |
Agency MBS |
|
|
900 |
|
|
|
12 |
% |
|
Banking, finance, insurance, & real estate |
|
|
513 |
|
|
|
9 |
% |
Corporate bonds |
|
|
622 |
|
|
|
8 |
% |
|
Construction & building |
|
|
257 |
|
|
|
4 |
% |
SBA |
|
|
139 |
|
|
|
2 |
% |
|
Services: consumer |
|
|
250 |
|
|
|
4 |
% |
Student loan ARS |
|
|
93 |
|
|
|
1 |
% |
|
Chemicals, plastics, & rubber |
|
|
249 |
|
|
|
4 |
% |
CMBS |
|
|
70 |
|
|
|
1 |
% |
|
Media: broadcasting & subscription |
|
|
248 |
|
|
|
4 |
% |
Other |
|
|
4 |
|
|
|
0 |
% |
|
Hotel, gaming, & leisure |
|
|
240 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Portfolio |
|
$ |
7,747 |
|
|
|
100 |
% |
|
Telecommunications |
|
|
240 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2023 Earnings Release |
|
Page 12 of 18 |
Loans and Lending Commitments - Allowance for Credit Losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2023 |
|
|
|
|
|
|
|
(Unaudited, 000s) |
|
Loans and Lending Commitments |
|
|
ACL |
|
|
ACL % |
|
|
Q2 Provision |
|
Residential real estate |
|
$ |
7,708,506 |
|
|
$ |
14,413 |
|
|
|
0.2 |
% |
|
$ |
(8,283 |
) |
Commercial and industrial |
|
|
4,471,031 |
|
|
|
66,377 |
|
|
|
1.5 |
% |
|
|
11,241 |
|
Fund banking |
|
|
4,349,541 |
|
|
|
12,178 |
|
|
|
0.3 |
% |
|
|
(765 |
) |
Securities-based loans |
|
|
2,399,328 |
|
|
|
3,086 |
|
|
|
0.1 |
% |
|
|
(31 |
) |
Commercial real estate |
|
|
677,521 |
|
|
|
13,429 |
|
|
|
2.0 |
% |
|
|
1,863 |
|
Construction and land |
|
|
772,571 |
|
|
|
12,645 |
|
|
|
1.6 |
% |
|
|
2,328 |
|
Other |
|
|
154,469 |
|
|
|
553 |
|
|
|
0.4 |
% |
|
|
(236 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for investment, gross |
|
|
20,532,967 |
|
|
|
122,681 |
|
|
|
0.6 |
% |
|
|
6,117 |
|
Loans held for sale |
|
|
224,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans, gross |
|
|
20,756,984 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lending commitments |
|
|
6,402,000 |
|
|
|
37,451 |
|
|
|
0.6 |
% |
|
|
1,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and lending commitments |
|
$ |
27,158,984 |
|
|
$ |
160,132 |
|
|
|
|
|
|
$ |
7,824 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2023 Earnings Release |
|
Page 13 of 18 |
Consolidated Net Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
June 30, 2023 |
|
|
June 30, 2022 |
|
|
March 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 |
|
$ |
2,015.4 |
|
|
$ |
25.0 |
|
|
|
4.96 |
% |
|
$ |
1,106.4 |
|
|
$ |
2.9 |
|
|
|
1.05 |
% |
|
$ |
1,989.5 |
|
|
$ |
22.7 |
|
|
|
4.57 |
% |
Financial instruments owned |
|
|
864.7 |
|
|
|
4.6 |
|
|
|
2.14 |
% |
|
|
1,171.1 |
|
|
|
4.1 |
|
|
|
1.39 |
% |
|
|
877.7 |
|
|
|
3.7 |
|
|
|
1.70 |
% |
Margin balances |
|
|
795.6 |
|
|
|
15.4 |
|
|
|
7.72 |
% |
|
|
1,105.7 |
|
|
|
8.7 |
|
|
|
3.16 |
% |
|
|
831.2 |
|
|
|
14.9 |
|
|
|
7.16 |
% |
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-backed securities |
|
|
6,162.8 |
|
|
|
106.5 |
|
|
|
6.91 |
% |
|
|
5,728.1 |
|
|
|
36.3 |
|
|
|
2.53 |
% |
|
|
6,202.4 |
|
|
|
98.8 |
|
|
|
6.37 |
% |
Mortgage-backed securities |
|
|
974.9 |
|
|
|
5.4 |
|
|
|
2.20 |
% |
|
|
991.3 |
|
|
|
4.7 |
|
|
|
1.89 |
% |
|
|
986.6 |
|
|
|
5.4 |
|
|
|
2.18 |
% |
Corporate fixed income securities |
|
|
622.5 |
|
|
|
4.3 |
|
|
|
2.77 |
% |
|
|
756.2 |
|
|
|
5.0 |
|
|
|
2.68 |
% |
|
|
637.5 |
|
|
|
4.1 |
|
|
|
2.61 |
% |
Other |
|
|
4.7 |
|
|
|
|
|
|
|
2.55 |
% |
|
|
4.8 |
|
|
|
|
|
|
|
1.72 |
% |
|
|
4.7 |
|
|
|
|
|
|
|
2.55 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investments |
|
|
7,764.9 |
|
|
|
116.2 |
|
|
|
5.99 |
% |
|
|
7,480.4 |
|
|
|
46.0 |
|
|
|
2.46 |
% |
|
|
7,831.2 |
|
|
|
108.3 |
|
|
|
5.53 |
% |
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate |
|
|
7,605.8 |
|
|
|
57.2 |
|
|
|
3.01 |
% |
|
|
6,301.8 |
|
|
|
39.5 |
|
|
|
2.51 |
% |
|
|
7,446.1 |
|
|
|
53.5 |
|
|
|
2.87 |
% |
Commercial and industrial |
|
|
4,715.2 |
|
|
|
96.7 |
|
|
|
8.21 |
% |
|
|
4,805.7 |
|
|
|
50.9 |
|
|
|
4.24 |
% |
|
|
4,816.3 |
|
|
|
94.3 |
|
|
|
7.83 |
% |
Fund banking |
|
|
4,403.6 |
|
|
|
82.9 |
|
|
|
7.53 |
% |
|
|
3,369.6 |
|
|
|
27.0 |
|
|
|
3.21 |
% |
|
|
4,396.4 |
|
|
|
76.3 |
|
|
|
6.94 |
% |
Securities-based loans |
|
|
2,469.1 |
|
|
|
43.0 |
|
|
|
6.96 |
% |
|
|
2,972.2 |
|
|
|
20.7 |
|
|
|
2.79 |
% |
|
|
2,638.0 |
|
|
|
42.5 |
|
|
|
6.44 |
% |
Commercial real estate |
|
|
688.3 |
|
|
|
13.1 |
|
|
|
7.59 |
% |
|
|
592.3 |
|
|
|
4.9 |
|
|
|
3.32 |
% |
|
|
666.8 |
|
|
|
10.9 |
|
|
|
6.57 |
% |
Construction and land |
|
|
702.3 |
|
|
|
14.2 |
|
|
|
8.07 |
% |
|
|
431.9 |
|
|
|
4.1 |
|
|
|
3.76 |
% |
|
|
612.6 |
|
|
|
11.5 |
|
|
|
7.49 |
% |
Loans held for sale |
|
|
178.9 |
|
|
|
3.0 |
|
|
|
6.72 |
% |
|
|
293.3 |
|
|
|
1.9 |
|
|
|
2.55 |
% |
|
|
206.3 |
|
|
|
3.4 |
|
|
|
6.53 |
% |
Other |
|
|
161.6 |
|
|
|
2.9 |
|
|
|
7.65 |
% |
|
|
130.8 |
|
|
|
1.4 |
|
|
|
4.17 |
% |
|
|
153.9 |
|
|
|
2.7 |
|
|
|
7.12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
|
20,924.8 |
|
|
|
313.0 |
|
|
|
5.98 |
% |
|
|
18,897.6 |
|
|
|
150.4 |
|
|
|
3.18 |
% |
|
|
20,936.4 |
|
|
|
295.1 |
|
|
|
5.64 |
% |
Other interest-bearing assets |
|
|
718.2 |
|
|
|
8.6 |
|
|
|
4.76 |
% |
|
|
1,149.5 |
|
|
|
0.7 |
|
|
|
0.24 |
% |
|
|
797.3 |
|
|
|
6.9 |
|
|
|
3.45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing assets/ interest income |
|
|
33,083.6 |
|
|
|
482.8 |
|
|
|
5.84 |
% |
|
|
30,910.7 |
|
|
|
212.8 |
|
|
|
2.75 |
% |
|
|
33,263.3 |
|
|
|
451.6 |
|
|
|
5.43 |
% |
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior notes |
|
|
1,114.9 |
|
|
|
12.5 |
|
|
|
4.49 |
% |
|
|
1,113.8 |
|
|
|
11.3 |
|
|
|
4.05 |
% |
|
|
1,114.6 |
|
|
|
12.5 |
|
|
|
4.49 |
% |
Deposits |
|
|
27,223.3 |
|
|
|
171.4 |
|
|
|
2.52 |
% |
|
|
24,231.9 |
|
|
|
3.6 |
|
|
|
0.06 |
% |
|
|
27,138.0 |
|
|
|
137.3 |
|
|
|
2.02 |
% |
Other interest-bearing liabilities |
|
|
1,181.3 |
|
|
|
7.2 |
|
|
|
2.45 |
% |
|
|
2,032.8 |
|
|
|
2.4 |
|
|
|
0.48 |
% |
|
|
1,170.5 |
|
|
|
5.2 |
|
|
|
1.78 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities/ interest expense |
|
$ |
29,519.5 |
|
|
|
191.1 |
|
|
|
2.59 |
% |
|
$ |
27,378.5 |
|
|
|
17.3 |
|
|
|
0.25 |
% |
|
$ |
29,423.1 |
|
|
|
155.0 |
|
|
|
2.11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/margin |
|
|
|
|
|
$ |
291.7 |
|
|
|
3.53 |
% |
|
|
|
|
|
$ |
195.5 |
|
|
|
2.53 |
% |
|
|
|
|
|
$ |
296.6 |
|
|
|
3.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2023 Earnings Release |
|
Page 14 of 18 |
Stifel Bancorp Net Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
June 30, 2023 |
|
|
June 30, 2022 |
|
|
March 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 |
|
$ |
1,128.4 |
|
|
$ |
15.0 |
|
|
|
5.31 |
% |
|
$ |
453.1 |
|
|
$ |
1.0 |
|
|
|
0.87 |
% |
|
$ |
916.1 |
|
|
$ |
11.2 |
|
|
|
4.91 |
% |
Investments |
|
|
7,764.9 |
|
|
|
116.2 |
|
|
|
5.99 |
% |
|
|
7,480.4 |
|
|
|
46.0 |
|
|
|
2.46 |
% |
|
|
7,831.2 |
|
|
|
108.3 |
|
|
|
5.53 |
% |
Loans |
|
|
20,924.8 |
|
|
|
313.0 |
|
|
|
5.98 |
% |
|
|
18,897.6 |
|
|
|
150.4 |
|
|
|
3.18 |
% |
|
|
20,936.4 |
|
|
|
295.1 |
|
|
|
5.64 |
% |
Other interest-bearing assets |
|
|
62.9 |
|
|
|
0.7 |
|
|
|
4.13 |
% |
|
|
68.1 |
|
|
|
0.8 |
|
|
|
4.67 |
% |
|
|
57.4 |
|
|
|
0.6 |
|
|
|
3.86 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing assets/ interest income |
|
$ |
29,881.0 |
|
|
$ |
444.9 |
|
|
|
5.96 |
% |
|
$ |
26,899.2 |
|
|
$ |
198.2 |
|
|
|
2.95 |
% |
|
$ |
29,741.1 |
|
|
$ |
415.2 |
|
|
|
5.58 |
% |
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
$ |
27,223.3 |
|
|
$ |
171.4 |
|
|
|
2.52 |
% |
|
$ |
24,231.9 |
|
|
$ |
3.6 |
|
|
|
0.06 |
% |
|
$ |
27,138.0 |
|
|
$ |
137.3 |
|
|
|
2.02 |
% |
Other interest-bearing liabilities |
|
|
0.8 |
|
|
|
0.1 |
|
|
|
50.62 |
% |
|
|
369.5 |
|
|
|
0.8 |
|
|
|
0.90 |
% |
|
|
6.4 |
|
|
|
0.1 |
|
|
|
6.62 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities/ interest expense |
|
$ |
27,224.1 |
|
|
|
171.5 |
|
|
|
2.52 |
% |
|
$ |
24,601.4 |
|
|
|
4.4 |
|
|
|
0.07 |
% |
|
$ |
27,144.4 |
|
|
|
137.4 |
|
|
|
2.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/margin |
|
|
|
|
|
$ |
273.4 |
|
|
|
3.66 |
% |
|
|
|
|
|
$ |
193.8 |
|
|
|
2.88 |
% |
|
|
|
|
|
$ |
277.8 |
|
|
|
3.74 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2023 Earnings Release |
|
Page 15 of 18 |
GAAP to Core Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
(Unaudited, 000s) |
|
6/30/2023 |
|
|
6/30/2022 |
|
|
Change |
|
|
3/31/2023 |
|
|
Change |
|
|
6/30/2023 |
|
|
6/30/2022 |
|
|
Change |
|
GAAP net revenues |
|
$ |
1,050,721 |
|
|
$ |
1,108,126 |
|
|
|
|
|
|
$ |
1,106,793 |
|
|
|
|
|
|
$ |
2,157,514 |
|
|
$ |
2,224,653 |
|
|
|
|
|
Non-GAAP adjustments |
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
(3 |
) |
|
|
|
|
|
|
(3 |
) |
|
|
61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net revenues |
|
|
1,050,721 |
|
|
|
1,108,127 |
|
|
|
|
|
|
|
1,106,790 |
|
|
|
|
|
|
|
2,157,511 |
|
|
|
2,224,714 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP compensation and benefits expense |
|
|
615,667 |
|
|
|
652,709 |
|
|
|
|
|
|
|
651,190 |
|
|
|
|
|
|
|
1,266,857 |
|
|
|
1,326,400 |
|
|
|
|
|
Merger-related (15) |
|
|
(6,523 |
) |
|
|
(9,174 |
) |
|
|
|
|
|
|
(9,253 |
) |
|
|
|
|
|
|
(15,776 |
) |
|
|
(18,485 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP compensation and benefits expense |
|
|
609,144 |
|
|
|
643,535 |
|
|
|
|
|
|
|
641,937 |
|
|
|
|
|
|
|
1,251,081 |
|
|
|
1,307,915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP non-compensation operating expenses |
|
|
253,669 |
|
|
|
236,876 |
|
|
|
|
|
|
|
245,720 |
|
|
|
|
|
|
|
499,389 |
|
|
|
452,603 |
|
|
|
|
|
Merger-related (15) |
|
|
(8,621 |
) |
|
|
(7,616 |
) |
|
|
|
|
|
|
(8,136 |
) |
|
|
|
|
|
|
(16,757 |
) |
|
|
(13,098 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
non-compensation operating expenses |
|
|
245,048 |
|
|
|
229,260 |
|
|
|
|
|
|
|
237,584 |
|
|
|
|
|
|
|
482,632 |
|
|
|
439,505 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total merger-related adjustments |
|
|
(15,144 |
) |
|
|
(16,791 |
) |
|
|
|
|
|
|
(17,386 |
) |
|
|
|
|
|
|
(32,530 |
) |
|
|
(31,644 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP provision for income taxes |
|
|
47,033 |
|
|
|
57,725 |
|
|
|
|
|
|
|
52,344 |
|
|
|
|
|
|
|
99,377 |
|
|
|
111,285 |
|
|
|
|
|
Merger-related and other (15) |
|
|
3,920 |
|
|
|
4,433 |
|
|
|
|
|
|
|
4,337 |
|
|
|
|
|
|
|
8,257 |
|
|
|
7,928 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP provision for income taxes |
|
|
50,953 |
|
|
|
62,158 |
|
|
|
|
|
|
|
56,681 |
|
|
|
|
|
|
|
107,634 |
|
|
|
119,213 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
58.0 |
% |
|
|
58.1 |
% |
|
|
(10 |
) |
|
|
58.0 |
% |
|
|
|
|
|
|
58.0 |
% |
|
|
58.8 |
% |
|
|
(80 |
) |
Non-compensation operating expenses |
|
|
23.3 |
% |
|
|
20.7 |
% |
|
|
260 |
|
|
|
21.5 |
% |
|
|
180 |
|
|
|
22.4 |
% |
|
|
19.7 |
% |
|
|
270 |
|
Income before income taxes |
|
|
18.7 |
% |
|
|
21.2 |
% |
|
|
(250 |
) |
|
|
20.5 |
% |
|
|
(180 |
) |
|
|
19.6 |
% |
|
|
21.5 |
% |
|
|
(190 |
) |
Effective tax rate |
|
|
25.9 |
% |
|
|
26.4 |
% |
|
|
(50 |
) |
|
|
24.9 |
% |
|
|
100 |
|
|
|
25.4 |
% |
|
|
25.0 |
% |
|
|
40 |
|
|
|
|
Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2023 Earnings Release |
|
Page 16 of 18 |
Footnotes
(1) |
Please refer to the GAAP to Core Reconciliation for a reconciliation of the Companys 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 $64.6 million, $57.4 million, and $62.3 million, as of June 30, 2023 and 2022, and March 31, 2023, respectively.
|
(5) |
Regulatory capital amounts and ratios are estimates as of the date of the Companys earnings release,
July 26, 2023. |
(6) |
Includes capital raising and advisory fee revenues. |
(7) |
Includes independent contractors of 109, 100, and 102 as of June 30, 2023 and 2022, and March 31,
2023, respectively. |
(8) |
Includes client margin balances held by the Companys broker-dealer subsidiaries and securities-based
loans held at the Companys 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 quarterly balances for Individual Program Banks. |
(13) |
Represents client assets in Treasury Securities with maturities of 52 weeks or less. |
(14) |
Includes net interest, asset management, and other income. |
(15) |
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 Companys on-going business. |
|
|
|
Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2023 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 Companys future results, financial
condition and liquidity, see Risk Factors in Part I of the Companys Annual Report on Form 10-K for the year ended December 31, 2022. 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 Companys 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 Companys second quarter earnings release issued July 26, 2023.
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Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2023 Earnings Release |
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Page 18 of 18 |
Exhibit 99.3 Second Quarter 2023 Financial Results Presentation July 26,
2023 Quarterly Earnings Report
Second Quarter Snapshot 2Q23 RESULTS millions, except per share and
ratios NET REVENUE NET EARNINGS EPS 2Q23: GAAP & NON-GAAP $1,051 2Q23: GAAP $1.10 & NON-GAAP $1.20 2Q23: GAAP $125 & NON-GAAP $136 YTD: GAAP & NON-GAAP $2,158 YTD: GAAP $273 & NON-GAAP $298 YTD: GAAP $2.38 & NON-GAAP $2.59
ANNUALIZED ROTCE* BOOK VALUE PER SHARE ANNUALIZED ROCE TBV $30.64 BV $44.41 2Q23:GAAP 10.7% & NON-GAAP 11.6% 2Q23: GAAP 15.5% NON-GAAP 16.8% YTD: GAAP 16.9% NON-GAAP 18.4% YTD: GAAP 11.7% & NON-GAAP 12.8% * Please see our definition of ROTCE
in our second quarter 2023 earnings release HIGHLIGHTS Ranked #1 by J.D. Power Increased Deposits For Employee Advisor Satisfaction By $1.0 billion Record Repurchased Global Wealth Management Revenue 1.5 million Common Shares 3rd Highest Continued
Recruiting Net Interest Income Strength Quarterly Earnings Report 1
Variance to Consensus Estimates Second Quarter Results Variance to
Consensus Estimates Commentary on Variance to Analyst Estimates ■ Commissions & Principal Transactions: (in Millions, except diluted EPS and share data) 2Q23 2Q23 Mean % ∆ Revenues Non-GAAP ANALYST ■ Stronger Revenue from GWM
& Institutional Equity Commissions + Principal transactions $271 $267 1% Investment banking $167 $185 (10%) ■ Investment Banking: Asset management and service fees $320 $320 0% ■ Four Transactions, Worth Approximately $18 million in
Net interest $292 $295 (1%) Fees, Delayed at End of 2Q23 Net revenues $1,051 $1,071 (2%) ■ Anticipated to Close in 3Q23 Non-interest expenses Compensation and benefits 609 618 1% ■ Net Interest Income Compensation Ratio 58.0% 57.7% (30
bps) ■ Decline in Interest Earning Assets Non-compensation expenses 245 235 4% ■ Cash Sorting Total non-interest expenses 854 853 0% Income before income taxes 196 218 (10%) ■ Compensation Ratio Tax Rate 25.9% 25.7% 1% ■
Weakness in Institutional Business Net Income $146 $162 (10%) ■ Non-compensation Expense: Diluted Operating EPS $1.20 $1.33 (10%) ■ Increased Marketing Spend ■ Increased FDIC Insurance Cost Quarterly Earnings Report 2
Recognition for Wealth Management Platform Quarterly Earnings Report
3
Second Quarter Results FINANCIAL RESULTS NET REVENUE Sequential millions
2Q23 Y/Y Change 2023 YTD VS 2022 YTD Change $1,400 Global Wealth Management $758 9% 0% $1,515 10% $1,122 $1,200 $1,108 $1,107 Institutional 276 -33% -17% 609 -28% $1,051 $1,045 Other 16 n/m -4% 33 n/m $1,000 Net revenue 1,051 -5% -5% 2,158 -3% $800
Compensation expense 609 -5% -5% 1,251 -4% $600 1 Operating expense 237 9% 2% 470 12% 2 $400 8 -39% 59% 13 -39% Provision for credit loss Pre-tax pre-provision income 204 -17% -12% 437 -12% $200 Pre-tax income 197 -17% -14% 424 -11% $0 2Q22 3Q22
4Q22 1Q23 2Q23 Taxes 51 -18% -10% 108 -10% Net income 146 -16% -15% 316 -12% Preferred dividends 9 0% 0% 19 0% Net income available to common 136 -17% -16% 298 -12% shareholders Diluted EPS $1.20 -14% -14% $2.59 -10% Compensation ratio 58.0% -10 bps
0 bps 58.0% -80 bps 3 22.6% 300 bps 160 bps 21.8% 220 bps Operating expense ratio Pre-tax operating margin 18.7% -250 bps -180 bps 19.6% -190 bps Book value per share $44.41 6% 2% Tangible book value per share $30.64 6% 2% 4 16.8% -480 bps -310 bps
ROTCE (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
first quarter earnings release Quarterly Earnings Report 4 millions
Global Wealth Management HIGHLIGHTS GLOBAL WEALTH MANAGEMENT REVENUE
Sequential millions 2Q23 Y/Y Change 2023 YTD VS 2022 YTD Change■ Ranked #1 by J.D. Power For Employee Advisor Transactional $158 -7% -2% $319 -8% Satisfaction Asset Management 320 -3% 1% 636 -6% ■ Record Quarterly & First Half Net
Revenue Net Interest 277 42% -2% 559 59% ■ Third Highest Quarterly Net Interest Income Investment Banking 4 -20% -2% 8 -19% ■ Third Highest Quarterly Asset Management Revenue Other (1) nm nm (7) nm Total Global Wealth Management Net $758
9% 0% $1,515 10% ■ Added 46 Financial Advisors, Including 28 Revenue Experienced with Total Trailing Twelve Month Comp. Ratio 46.7% -340 bps 150 bps 46.0% -580 bps Production of $24.8 million Non-Comp. Ratio 13.7% -110 bps 60 bps 13.3% -80 bps
Provision for credit loss $8 -39% 59% $13 -39% Pre-tax Margin 39.6% 450 bps -210 bps 40.7% 660 bps NET REVENUE & MARGIN Pre-tax Pre-provision Margin 40.6% 380 bps -180 bps 41.5% 600 bps $790 44% $757 $758 $765 FINANCIAL ADVISOR & CLIENT
ASSET METRICS $744 42% $740 Sequential millions 2Q23 Y/Y 40% 41.7% Change 42.6% $702 $715 $698 Financial Advisors 2,260 1% 1% 38% 39.6% $690 39.9% 36% Independent Contractors 109 9% 7% $665 34% Total Financial Advisors 2,369 2% 1% $640 35.1% 32%
Client AUA $417,669 11% 3% $615 Fee-based Client Assets $154,538 9% 3% 30% $590 2Q22 3Q22 4Q22 1Q23 2Q23 Private Client Fee-based Client Assets $135,606 10% 3% Net Revenue Pre-tax Margin Quarterly Earnings Report 5 Margin Net Revenue
(millions)
Strong Bank Fundamentals NIM STABLE DESPITE RISING DEPOSIT SLOWING CASH
SORTING $1,407 COSTS 6.00% $619 $586 5.00% $412M $376M $307 $292M $202M $187 $129M $94M $42 3.64% 3.57% 4.00% 3.53% 3.00% 3.00% 2.53% ($288) ($673) 2.00% ($945) ($1,076) ($1,061) 1.00% ($1,619) 0.00% Jan '23 Feb '23 Mar '23 Apr '23 May '23 Jun '23
2Q22 3Q22 4Q22 1Q23 2Q23 Sweep Smart Rate Ticketed MMF Net Interest Margin Deposit Costs Asset Yields ALLOWANCE FOR CREDIT LOSSES / TOTAL LOANS WELL CAPITALIZED UNDER STRESS SCENARIO 2.50% 12.0% 11.0% 2.00% 10.0% 9.0% 1.50% 8.0% 1.00% 7.0% 0.80%
0.75% 0.74% 0.75% 0.70% 6.0% 0.50% 5.0% 4.0% 0.00% 2Q22 3Q22 4Q22 1Q23 2Q23 2Q22 3Q22 4Q22 1Q23 2Q23 Tier 1 Ratio (incl. AOCI & HTM Losses) Tier 1 Ratio Well Capitalized Residential SBL CRE Construction C&I Unfunded / Other reserves* Total
Reserve Ratio Quarterly Earnings Report 6 millions
Institutional Group INSTITUTIONAL GROUP REVENUE HIGHLIGHTS Sequential
millions 2Q23 Y/Y Change 2023 YTD VS 2022 YTD Change ■ Strongest Capital Raising Revenue Since Advisory $87 -57% -43% $238 -38% 4Q21 Capital Raising $75 13% 32% $132 -2% Transactional $113 -20% -9% $237 -26% ■ Ranked #1 in Municipal
Issuance in 1H23 Total Institutional Revenue* $276 -33% -17% $609 -28% with 15.7% Market Share Comp. Ratio 70.3% 1080 bps 840 bps 65.7% 670 bps ■ Increased Market Share in Equity Non-Comp. Ratio 34.4% 1160 bps 640 bps 30.9% 1000 bps
Transactions Pre-tax Margin -4.7% -2240 bps -1480 bps 3.4% -1670 bps * Includes net interest, asset management, and other income EQUITIES REVENUE FIXED INCOME REVENUE $100 $200 $77 $76 $76 $160 $80 $72 $70 $136 $113 $60 $25 $120 $105 $24 $103 $101
$40 $24 $26 $30 $28 $27 $32 $45 $80 $40 $40 $20 $96 $74 $77 $71 $68 $46 $46 $52 $52 $46 $0 $0 2Q22 3Q22 4Q22 1Q23 2Q23 2Q22 3Q22 4Q22 1Q23 2Q23 Transactional Underwriting Transactional Underwriting * 2021 revenue based on annualized results through
9/30/2021 Quarterly Earnings Report 7 millions millions
Expenses Non-GAAP EXPENSE RATIOS NON-GAAP EXPENSES & PRE-TAX INCOME
65% 25% millions 2Q23 2Q22 Y/Y Change 63% 20% 61% Compensation $609 $644 -5% 15% 59% Non-compensation Expense, 57% $230 $208 11% 58.1% 58.0% 58.0% 10% 58.0% Ex. IB Gross Up & Credit Loss 55% 56.5% 5% Credit Loss Provision & IB Gross Up $15
$21 -27% 53% 51% 0% Non-compensation $245 $229 7% 2Q22 3Q22 4Q22 1Q23 2Q23 Pre-tax Income $197 $235 -17% 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) 2Q23 $700 $600 GAAP Net Income $134,352 $500 $400 Preferred Dividend $9,320 $300 $200 Net Income available to common Shareholders $125,032 $100 $0 Non-GAAP After Tax Adjustments $11,224 2019 2020 2021 2022 2023*
Non-GAAP Net Income Available to Common $136,256 Shareholders GAAP Net Income Available to Common Shareholders Non-GAAP After Tax Adjustments * For reconciliation of GAAP to non-GAAP expenses, refer to our second quarter 2023 earnings release. *2023
annual GAAP to non-GAAP results based on annualized results through 6/30/2023 Quarterly Earnings Report 8 millions Compensation Ratio Non-compensation Ratio
Capital Utilization FIRM-WIDE ASSETS & CAPITAL RATIOS HIGHLIGHTS
$40,000 $38,598 22.0% ■ Total Assets Decreased $1.3 billion $37,298 $37,612 $37,196 $38,000 $36,476 20.0% $36,000 ■ Bank Funding Increased at CAGR of 12% Since 2019 18.0% $34,000 18.0% $32,000 ■ Repurchased 1.5 million Shares 17.6%
17.3% 16.0% 16.8% 17.0% $30,000 14.0% ■ 6.1 million Shares Remaining on Current $28,000 $26,000 12.0% Authorization $24,000 11.2% 11.1% 11.1% 11.1% 10.0% 10.9% $22,000 $20,000 8.0% 2Q22 3Q22 4Q22 1Q23 2Q23 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 $45,000 $1,200,000 $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 $0 $5,000 2018 2019
2020 2021 2022 2023E $0 ($200,000) 2017 2018 2019 2020 2021 2022 2023* ($400,000) Capital Generated Bank Growth Common Stock Repurchases Dividends (Common & Preferred) Acquisitions Bank Deposits Available Funding *2023 based on results through
6/30/2023 *2023 Estimated Capital Generated based annualized 2Q23 Net Income plus current capital in excess of regulatory minimum. Quarterly Earnings Report 9 (000s) millions millions
Outlook Illustrates Operating Leverage Actuals Guidance 2H23 2023
millions 2022 1H23 Operating Net Revenue $3,482 $1,565 $1,700 - $1,850 $3,260 - $3,425 Global Wealth Management $1,946 $956 $1,000 - $1,050 $1,950 - $2,010 Institutional $1,536 $609 $700 - $800 $1,310 - $1,415 Net Interest Income $898 $588 $575 -
$600 $1,165 - $1,188 Net Revenue* $4,391 $2,158 $2,275 - $2,450 $4,425 - $4,615 Compensation Ratio 58.0% 58.0% 58.0% 58.0% Non-Compensation Opex. Ratio** 19.6% 21.2% 19.0% - 20.0% 20.0% - 21.0% Pre-tax Margin 21.7% 19.6% 20.5% - 21.5% 20.0% - 21.0%
* Net Revenue Includes Other Revenue ** Non-Compensation Opex. Ratio =Non-Compensation Expense – Credit Provision & investment Banking Gross Up / Net Revenue Quarterly Earnings Report 10
Concluding Remarks Quarterly Earnings Report
Second Quarter 2023 Financial Results Presentation July 26, 2023
Quarterly Earnings Report
Disclaimer Forward-Looking Statements This presentation may
contain“forward-lookingstatements” 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 theCompany’s future results, financial condition
and liquidity, see“RiskFactors” in Part I of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. 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 financialmeasures” in the course of its earnings releases, earnings conference calls, financial presentations and
otherwise. The Securities and Exchange Commission defines a“non-GAAP financialmeasure” 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 theCompany’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
13
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Stifel Financial (NYSE:SF-D)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
Stifel Financial (NYSE:SF-D)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024