Attached files
| file | filename |
|---|---|
| 8-K - 8-K - STIFEL FINANCIAL CORP | d767542d8k.htm |
| EX-99.1 - EX-99.1 - STIFEL FINANCIAL CORP | d767542dex991.htm |
 2
nd
Quarter 2014
Financial Results Presentation
August 6, 2014
Exhibit 99.2 |
 1
Disclaimer
Forward-Looking Statements
Use of Non-GAAP Financial Measures
The Company utilized non-GAAP calculations of presented net revenues, compensation and
benefits, non-compensation operating expenses, income before income taxes,
provision for income taxes, net income, compensation and non-compensation operating expense
ratios, pre-tax margin and diluted earnings per share as an additional measure to aid in
understanding and analyzing the Company’s financial results for the three and six
months ended June 30, 2014. Specifically, the Company believes that the non-GAAP measures
provide useful information by excluding certain items that may not be indicative of the
Company’s core operating results and business outlook. The Company believes that
these non-GAAP measures will allow for a better evaluation of the operating performance of the
business and facilitate a meaningful comparison of the Company’s results in the current
period to those in prior periods and future periods. Reference to these non-GAAP
measures should not be considered as a substitute for results that are presented in a manner consistent
with GAAP. These non-GAAP measures are provided to enhance investors' overall
understanding of the Company’s financial performance. 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. In particular, these statements may refer to our
goals, intentions, and expectations, our business plans and growth strategies, our ability to
integrate and manage our acquired businesses, estimates of our risks and future costs
and benefits, and forecasted demographic and economic trends relating to our industry.
You should not place undue reliance on any forward-looking statements, which speak only as
of the date they were made. We will not update these forward-looking
statements, even though our situation may change in the future, unless we are obligated to do so under federal
securities laws. Actual
results may differ materially and reported results should not be considered as an indication of future performance. Factors that could
cause actual results to differ are included in the Company’s annual and quarterly reports
and from time to time in other reports filed by the Company with the Securities and
Exchange Commission and include, among other things, changes in general economic and business
conditions, actions of competitors, regulatory and legal actions, changes in legislation, and
technology changes. |
 2
Chairman’s Comments
“We are pleased with the performance of our private client and investment
banking groups, which contributed nicely to our results in a challenging
market environment. Our global wealth management segment posted
record net revenues and record pre-tax operating contributions in the
quarter.
Investment
banking
benefitted
from
strong
equity
capital
raising
and
advisory activity. Our institutional brokerage results are reflective of lower
industry volumes.
During the second quarter, we announced two acquisitions. Oriel Securities,
a London-based stockbroking and investment banking firm, will build out our
institutional businesses already underway in London. And, in June, we
announced the acquisition of Legg Mason Investment Counsel, which will be
complementary to our high net worth private client group.” |
 Market
Overview 3
Date
S&P 500
10yr
Risk Premium
6/30/2014
5.51%
less
2.53%
=
2.98%
12/31/2013
5.54%
less
3.04%
=
2.50%
6/28/2013
6.48%
less
2.52%
=
3.96%
Equity Risk Premium
Rates
Flows
Period
S&P 500
Dow
U.S. 10yr
Yield
VIX
Equity
ADV
Corporate
Bond ADV
Equity
Mutual
Fund ($)
U.S. ECM
($)
U.S. DCM
($)
Municipal
Bond DCM
($)
U.S.
Announced
M&A ($)
U.S.
Completed
M&A ($)
2014 Q2
1,960
16,827
2.53%
11.6
6,053
21,086
11.0
83,276
511,307
88,100
437,829
202,682
2014 Q1
1,872
16,458
2.72%
13.9
6,944
21,854
56.2
58,733
546,728
63,600
300,917
345,386
2Q
5%
2%
-19 bps
-17%
-13%
-4%
-81%
42%
-6%
39%
45%
-41%
6M 2014
1,960
16,827
2.53%
11.6
6,453
42,940
67.2
142,009
1,058,036
151,700
738,746
548,069
6M 2013
1,606
14,910
2.49%
16.9
6,441
41,021
70.4
136,510
1,194,511
176,800
517,109
469,376
YTD
6%
2%
-51 bps
-16%
6M/6M
0%
5%
-5%
4%
-11%
-14%
43%
17%
Underwriting Volumes and M&A
Volatility / Volumes
Market Valuations
(1)
Volumes are in million $, except trading volumes which are in million shares.
Source: Dealogic, SIFMA, ICI, KBW Research. |
 Financial
Results |
 Stifel Financial
Corp. Results Three months ended June 30, 2014
5
(1)
Non-core adjustments consist of merger-related revenues and expenses associated with
our recent acquisitions and discontinued operations of SN Canada.
(2)
Results for the three months ended June 30, 2013 and March 31, 2014 are Core (non-GAAP).
_________________________________________________________
(1)
(2)
(2)
($ in thousands, except per share amounts)
Non-GAAP
Non-Core
GAAP
6/30/13
% Change
3/31/14
% Change
Total revenues
570,543
$
(1,554)
$
568,989
$
508,022
$
12.3%
557,288
$
2.4%
Interest expense
9,048
(206)
8,842
12,608
(28.2%)
8,853
2.2%
Net revenues
561,495
(1,348)
560,147
495,414
13.3%
548,435
2.4%
Compensation and benefits
353,754
1,513
355,267
311,228
13.7%
344,487
2.7%
Non-comp operating expenses
122,811
4,546
127,357
108,964
12.7%
119,376
2.9%
Total non-interest expenses
476,565
6,059
482,624
420,192
13.4%
463,863
2.7%
Income from continuing operations before income taxes
84,930
(7,407)
77,523
75,222
12.9%
84,572
0.4%
Provision for income taxes
33,664
(1,718)
31,946
30,089
11.9%
32,544
3.4%
Net income from continuing operations
51,266
$
(5,689)
$
45,577
$
45,133
$
13.6%
52,028
$
(1.5%)
Discontinued operations:
Loss from discontinued operations, net of tax
-
(1,976)
(1,976)
-
-
Net income
51,266
$
(7,665)
$
43,601
$
45,133
$
13.6%
52,028
$
(1.5%)
Earnings per diluted common share:
Income from continuing operations
0.68
$
(0.08)
$
0.60
$
0.69
$
(1.4%)
0.69
$
(1.4%)
Loss from discontinued operations
-
(0.02)
(0.02)
-
-
Earnings per diluted common share
0.68
$
(0.10)
$
0.58
$
0.69
$
(1.4%)
0.69
$
(1.4%)
Weighted average number of shares outstanding:
Diluted
75,641
74,090
2.1%
75,691
(0.1%)
Ratios to net revenues:
Compensation and benefits
63.0%
63.4%
62.8%
62.8%
Non-comp operating expenses
21.9%
22.8%
22.0%
21.8%
Income from continuing operations before income taxes
15.1%
13.8%
15.2%
15.4%
Three Months Ended June 30, 2014
Three Months Ended |
 Stifel Financial
Corp. Results Six months ended June 30, 2014
6
(1)
Non-core adjustments consist of merger-related revenues and expenses associated with
our recent acquisitions and discontinued operations of SN Canada.
(2)
Results for the six months ended June 30, 2013 are Core (non-GAAP).
_________________________________________________________
(1)
(2)
($ in thousands, except per share amounts)
Non-GAAP
Non-Core
GAAP
6/30/13
% Change
Total revenues
1,127,831
$
(3,465)
$
1,124,366
$
957,202
$
17.8%
Interest expense
17,901
(428)
17,473
23,176
(22.8%)
Net revenues
1,109,930
(3,037)
1,106,893
934,026
18.8%
Compensation and benefits
698,241
3,797
702,038
592,355
17.9%
Non-comp operating expenses
242,187
7,017
249,204
202,458
19.6%
Total non-interest expenses
940,428
10,814
951,242
794,813
18.3%
Income from continuing operations before income taxes
169,502
(13,851)
155,651
139,213
21.8%
Provision for income taxes
66,208
(4,107)
62,101
54,022
22.6%
Net income from continuing operations
103,294
$
(9,744)
$
93,550
$
85,191
$
21.2%
Discontinued operations:
Loss from discontinued operations, net
-
(2,567)
(2,567)
Net income
103,294
$
(12,311)
$
90,983
$
85,191
$
21.2%
Earnings per diluted common share:
Income from continuing operations
1.37
$
(0.13)
$
1.24
$
1.19
$
15.1%
Loss from discontinued operations, net
-
(0.04)
(0.04)
Earnings per diluted common share
1.37
$
(0.17)
$
1.20
$
1.19
$
15.1%
Weighted average number of shares outstanding:
Diluted
75,665
71,627
5.6%
Ratios to net revenues
:
Compensation and benefits
62.9%
63.4%
63.4%
Non-comp operating expenses
21.8%
22.5%
21.7%
Income from continuing operations before income taxes
15.3%
14.1%
14.9%
Six Months Ended June 30, 2014
Six Months Ended |
 Source of
Revenues 7
($ in thousands)
6/30/14
6/30/13
%
Change
3/31/14
%
Change
6/30/14
6/30/13
%
Change
Commissions
152,712
$
154,795
$
(1.3%)
159,416
$
(4.2%)
312,128
$
300,662
$
3.8%
Principal transactions
125,676
111,306
12.9%
126,461
(0.6%)
252,137
218,570
15.4%
Brokerage revenues
278,388
266,101
4.6%
285,877
(2.6%)
564,265
519,232
8.7%
Capital raising
81,159
71,303
13.8%
73,804
10.0%
154,690
121,152
27.7%
Advisory
60,356
48,140
25.4%
58,500
3.2%
119,129
75,196
58.4%
Investment banking
141,515
119,443
18.5%
132,304
7.0%
273,819
196,348
39.5%
Asset mgt and service fees
94,231
76,088
23.8%
89,170
5.7%
183,401
145,000
26.5%
Other
8,742
11,787
(25.8%)
5,200
68.1%
13,942
32,206
(56.7%)
Total operating revenues
522,876
473,419
10.4%
512,551
2.0%
1,035,427
892,786
16.0%
Interest revenue
46,113
32,893
40.2%
42,826
7.7%
88,939
62,699
41.9%
Total revenues
568,989
506,312
12.4%
555,377
2.5%
1,124,366
955,485
17.7%
Interest expense
8,842
12,634
(30.0%)
8,631
2.4%
17,473
23,203
(24.7%)
Net revenues
560,147
$
493,678
$
13.5%
546,746
$
2.5%
1,106,893
$
932,282
$
18.7%
Three Months Ended
Six Months Ended |
 Brokerage &
Investment Banking Revenues 8
($ in thousands)
6/30/14
6/30/13
% Change
3/31/14
% Change
6/30/14
6/30/13
% Change
Global Wealth Management
161,780
$
160,889
$
0.6%
161,505
$
0.2%
323,285
$
319,262
$
1.3%
Institutional Group
Equity brokerage
62,087
64,273
(3.4%)
65,768
(5.6%)
127,855
113,511
12.6%
Fixed income brokerage
54,520
40,939
33.2%
58,604
(7.0%)
113,124
86,439
30.9%
Total Institutional Group
116,607
105,212
10.8%
124,372
(6.2%)
240,979
199,950
20.5%
Total brokerage revenues
278,387
266,101
4.6%
285,877
(2.6%)
564,264
519,212
8.7%
Investment Banking:
Capital raising
Equity
65,750
53,577
22.7%
60,696
8.3%
126,174
85,172
48.1%
Fixed income
15,409
17,726
(13.1%)
13,108
17.6%
28,516
35,980
(20.7%)
Total capital raising
81,159
71,303
13.8%
73,804
10.0%
154,690
121,152
27.7%
Advisory fees
60,356
48,140
25.4%
58,500
3.2%
119,129
75,196
58.4%
Total Investment banking
141,515
119,443
18.5%
132,304
7.0%
273,819
196,348
39.5%
Three Months Ended
Six Months Ended |
 Core
Non-Interest Expenses Three months ended June 30, 2014
9
_________________________________________________________
(1)
Excludes non-core adjustments consisting of merger-related revenues and expenses
associated with our recent acquisitions and discontinued operations of SN Canada.
(2)
Transition pay includes amortization of retention awards, signing bonuses, and upfront
notes. ($ in thousands)
6/30/14
(1)
6/30/13
% Change
3/31/14
% Change
6/30/14
(1)
6/30/13
3/31/14
Net revenues
561,495
$
495,414
$
13.3%
548,435
$
2.4%
100.0%
100.0%
100.0%
Compensation and benefits
328,380
290,511
13.0%
321,035
2.3%
58.5%
58.6%
58.5%
Transitional pay
(2)
25,374
20,717
22.5%
23,452
8.2%
4.5%
4.2%
4.3%
Total compensation and benefits
353,754
311,228
13.7%
344,487
2.7%
63.0%
62.8%
62.8%
Occupancy and equipment rental
40,493
37,768
7.2%
39,570
2.3%
7.2%
7.6%
7.2%
Communication and office supplies
25,691
24,124
6.5%
24,801
3.6%
4.6%
4.9%
4.5%
Commissions and floor brokerage
9,248
9,374
(1.3%)
9,028
2.4%
1.6%
1.9%
1.6%
Other operating expenses
47,379
37,698
25.7%
45,977
3.0%
8.4%
7.6%
8.5%
Total non-comp operating expenses
122,811
108,964
12.7%
119,376
2.9%
21.9%
22.0%
21.8%
Total non-interest expense
476,565
420,192
13.4%
463,863
2.7%
84.9%
84.8%
84.6%
Income from continuing operations before income taxes
84,930
75,222
12.9%
84,572
0.4%
15.1%
15.2%
15.4%
Provision for income taxes
33,664
30,089
11.9%
32,544
3.4%
6.0%
6.1%
5.9%
Non-GAAP net income from continuing operations
51,266
$
45,133
$
13.6%
52,028
$
(1.5%)
9.1%
9.1%
9.5%
Non-core expenses (after-tax)
(5,689)
(14,217)
(4,055)
GAAP net income from continuing operations
45,577
$
30,916
$
47,973
$
Three Months Ended
% of Net revenues |
 Core
Non-Interest Expenses Six months ended June 30, 2014
10
_________________________________________________________
(1)
Excludes non-core adjustments consisting of merger-related revenues and expenses
associated with our recent acquisitions and discontinued operations of SN Canada.
(2)
Transition pay includes amortization of retention awards, signing bonuses, and upfront
notes. ($ in thousands)
6/30/14
(1)
6/30/13
% Change
6/30/14
(1)
6/30/13
Net revenues
1,109,930
$
934,026
$
18.8%
100.0%
100.0%
Compensation and benefits
649,415
550,812
17.9%
58.5%
59.1%
Transitional pay
(2)
48,826
41,543
17.5%
4.4%
4.4%
Total compensation and benefits
698,241
592,355
17.9%
62.9%
63.4%
Occupancy and equipment rental
80,063
68,741
16.5%
7.2%
7.4%
Communication and office supplies
50,492
45,459
11.1%
4.5%
4.9%
Commissions and floor brokerage
18,276
17,823
2.5%
1.6%
1.9%
Other operating expenses
93,356
70,435
32.5%
8.4%
7.6%
Total non-comp operating expenses
242,187
202,458
19.6%
21.8%
21.7%
Total non-interest expense
940,428
794,813
18.3%
84.7%
85.1%
Income from continuing operations before income taxes
169,502
139,213
21.8%
15.3%
14.9%
Provision for income taxes
66,208
54,022
22.6%
6.0%
5.8%
Non-GAAP net income from continuing operations
103,294
$
85,191
$
21.2%
9.3%
9.1%
Non-core expenses (after-tax)
(9,744)
(39,339)
GAAP net income from continuing operations
93,550
$
45,852
$
Six Months Ended
% of Net revenues |
 11
Three Months Ended
($ in thousands)
3/31/14
6/30/14
9/30/14
12/31/14
Acquisitions
Acacia Federal Savings Bank
1,723
$
2,762
$
De La Rosa & Co., Inc.
130
765
Keefe, Bruyette & Woods, Inc.
1,008
1,657
Knight Fixed Income
2,407
94
Miller Buckfire & Co., LLC
1,172
1,233
Ziegler Capital Management
4
11
6,444
6,522
4,000
2,500
Oriel Securities Holding Limited
-
557
Legg Mason Invesment Counsel
-
328
Total Deal Costs (Pre-tax)
6,444
$
7,407
$
4,000
$
2,500
$
Discontinued Operations, net
(591)
$
(1,976)
$
(200)
$
-
$
Actual
Estimate
Undetermined
Undetermined
Non-Core Deal Costs |
 Segment
Comparison - Core
12
(1)
Excludes the other segment.
_________________________________________________________
($ in thousands)
6/30/14
6/30/13
%
Change
3/31/14
%
Change
6/30/14
6/30/13
%
Change
Net revenues:
Global Wealth Management
307,247
$
282,717
$
8.7%
297,183
$
3.4%
604,430
$
549,674
$
10.0%
Institutional Group
255,712
215,444
18.7%
249,977
2.3%
505,689
388,744
30.1%
Other
(1,464)
(2,747)
46.7%
1,275
(214.8%)
(189)
(4,392)
95.7%
561,495
$
495,414
$
13.3%
548,435
$
2.4%
1,109,930
$
934,026
$
18.8%
Operating contribution:
Global Wealth Management
89,098
$
78,924
$
12.9%
79,676
$
11.8%
168,774
$
148,423
$
13.7%
Institutional Group
42,690
31,083
37.3%
45,622
(6.4%)
88,312
59,313
48.9%
Other
(46,858)
(34,785)
(34.7%)
(40,726)
(15.1%)
(87,584)
(68,523)
(27.8%)
84,930
$
75,222
$
12.9%
84,572
$
0.4%
169,502
$
139,213
$
21.8%
Operating contribution
Global Wealth Management
29.0
27.9
26.8
27.9
27.0
Institutional Group
16.7
14.4
18.3
17.5
15.3
15.1
15.2
15.4
15.3
14.9
As a percentage of net revenues:
(1)
Three Months Ended
Six Months Ended |
 Non Comp
Operating Expenses by Segment - Core
13
($ in thousands)
6/30/14
6/30/13
%
Change
3/31/14
%
Change
6/30/14
6/30/13
%
Change
Non-comp operating expenses:
Global Wealth Management
46,425
$
40,637
$
14.2%
43,339
$
7.1%
89,764
$
80,499
$
11.5%
Institutional Group
55,523
51,964
6.8%
50,399
10.2%
105,862
90,213
17.3%
Other
20,863
16,363
27.5%
25,638
(18.6%)
46,561
31,746
46.7%
122,811
$
108,964
$
12.7%
119,376
$
2.9%
242,187
$
202,458
$
19.6%
Three Months Ended
Six Months Ended
(1)
Excludes the other segment.
_________________________________________________________
|
 Global Wealth
Management ($ in thousands)
6/30/14
6/30/13
% Change
3/31/14
% Change
6/30/14
6/30/13
% Change
Commissions
107,438
$
104,576
$
2.7%
107,739
$
(0.3%)
215,177
$
206,662
$
4.1%
Principal transactions
54,342
56,313
(3.5%)
53,766
1.1%
108,108
112,620
(4.0%)
Asset management & service fees
94,187
75,976
24.0%
89,130
5.7%
183,317
144,910
26.5%
Net interest
35,839
24,505
46.2%
35,262
1.6%
71,101
45,991
54.6%
Investment banking
9,892
15,334
(35.5%)
9,926
(0.3%)
19,818
26,437
(25.0%)
Other income
5,549
6,013
(7.7%)
1,360
307.9%
6,909
13,054
(47.1%)
Net revenues
307,247
282,717
8.7%
297,183
3.4%
604,430
549,674
10.0%
Compensation and benefits
171,724
163,156
5.3%
174,168
(1.4%)
345,892
320,752
7.8%
Non-comp operating expenses
46,425
40,637
14.2%
43,339
7.1%
89,764
80,499
11.5%
Total non-interest expenses
218,149
203,793
7.0%
217,507
0.3%
435,656
401,251
8.6%
Income before income taxes
89,098
$
78,924
$
12.9%
79,676
$
11.8%
168,774
$
148,423
$
13.7%
Ratios to net revenues
:
Compensation and benefits
55.9%
57.7%
58.6%
57.2%
58.4%
Non-comp operating expenses
15.1%
14.4%
14.6%
14.9%
14.6%
Income before income taxes
29.0%
27.9%
26.8%
27.9%
27.0%
Three Months Ended
Six Months Ended
14 |
 Stifel Bank
& Trust (an operating unit of GWM)
15
Note: Actual amounts presented above are as of period-end and yields are based off
of quarter-to-date averages. (1)
Investment securities includes available-for-sale and held-to-maturity
securities. (2)
Includes loans held for sale.
_________________________________________________________
Actual ($)
Yield (%)
Actual ($)
Yield (%)
Actual ($)
Yield (%)
Q214 v Q213
Q214 v Q114
Assets
Federal funds sold
132,152
0.37
110,514
0.24
181,438
0.55
19.6
(27.2)
Investment securities
(1)
2,915,235
2.47
2,956,073
2.14
3,083,902
2.54
(1.4)
(5.5)
Bank loans
(2)
1,893,330
3.38
1,137,011
3.35
1,616,832
3.49
66.5
17.1
Total interest earning assets
4,940,717
2.73
4,203,598
2.42
4,882,172
2.67
17.5
1.2
Other assets (non-interest earning)
109,319
102,849
112,043
6.3
(2.4)
Total assets
5,050,036
4,306,447
4,994,215
17.3
1.1
Liabilities
Deposits
4,653,656
0.14
4,007,050
0.31
4,605,260
0.15
16.1
1.1
Other liabilities (non-interest bearing)
26,182
14,410
37,265
81.7
(29.7)
Total liabilites
4,679,838
4,021,460
4,642,525
16.4
0.8
Net interest margin
2.59
2.13
2.53
Allowance for loan losses
17,104
$
10,919
$
14,131
$
56.6
21.0
Allowance as a percentage of loans
0.97%
1.10%
0.94
%
Non-performing assets as a percentage of total assets
0.10%
0.03%
0.03
%
% Change
As of 6/30/14
As of 6/30/13
As of 3/31/14 |
 Institutional
Group 16
($ in thousands)
6/30/14
6/30/13
% Change
3/31/14
% Change
6/30/14
6/30/13
% Change
Net revenues
255,712
$
215,444
$
18.7%
249,977
$
2.3%
505,689
$
388,744
$
30.1%
Compensation and benefits
157,499
132,397
19.0%
154,016
2.3%
311,515
239,218
30.2%
Non-comp operating expenses
55,523
51,964
6.8%
50,339
10.3%
105,862
90,213
17.3%
Total non-interest expenses
213,022
184,361
15.5%
204,355
4.2%
417,377
329,431
26.7%
Income before income taxes
42,690
$
31,083
$
37.3%
45,622
$
(6.4%)
88,312
$
59,313
$
48.9%
Ratios to net revenues :
Compensation and benefits
61.6%
61.5%
61.6%
61.6%
61.5%
Non-comp operating expenses
21.7%
24.1%
20.1%
20.9%
23.2%
Income before income taxes
16.7%
14.4%
18.3%
17.5%
15.3%
Three Months Ended
Six Months Ended |
 Financial
Condition |
 Capital
Structure As of June 30, 2014
(in thousands, except ratios)
18
_________________________________________________________
(1)
(2)
($ in thousands)
Total Assets
9,575,012
$
Stockholders' Equity
2,173,191
$
6.70% senior notes, due 2022
175,000
$
5.375% senior notes, due 2022
150,000
Debentures to Stifel Financial Capital Trusts II, III, & IV
82,500
Total Capitalization
2,580,691
$
4.250% senior notes, due 2024
300,000
Total Capitalization (pro forma)
2,880,691
$
Ratios:
Debt to Equity
(1)
18.8%
Pro Forma Debt to Equity
(2)
32.6%
Tier 1 Leverage Ratio
15.4%
Tier 1 Risk Based Capital Ratio
25.5%
Debt to equity ratio includes the debentures to Stifel Financial Capital Trusts ($82.5m) and
Senior Notes ($325.0m) divided by stockholders’ equity.
Pro forma debt to equity ratio includes the $300.0 million, 4.250% senior notes issued in
July 2014. |
 19
Other Financial Data
(1)
_________________________________________________________
As of
6/30/14
6/30/13
% Change
3/31/14
% Change
Total assets (000s):
Stifel Nicolaus & Stifel Financial
4,524,976
$
4,186,744
$
8.1%
4,393,599
$
3.0%
Stifel Bank
5,050,036
4,306,447
17.3%
4,994,215
1.1%
Total assets
9,575,012
$
8,493,191
$
12.7%
9,387,814
$
2.0%
Total shareholders' equity (000s):
Stifel Nicolaus & Stifel Financial
1,802,993
$
1,613,003
$
11.8%
1,748,450
$
3.1%
Stifel Bank
370,198
284,987
29.9%
351,690
5.3%
Total shareholders' equity
2,173,191
$
1,897,990
$
14.5%
2,100,140
$
3.5%
Leverage ratio:
Stifel Nicolaus & Stifel Financial
2.0
2.0
1.4%
2.0
0.4%
Stifel Bank
13.6
15.1
(9.7%)
14.2
(3.9%)
Total leverage ratio
3.7
3.6
3.0%
3.7
(0.9%)
Book value per share
33.18
$
30.05
$
10.4%
32.09
$
3.4%
Financial advisors
(1)
2,085
2,069
0.8%
2,081
0.2%
Full-time associates
5,881
5,759
2.1%
5,831
0.9%
Locations
361
357
1.1%
359
0.6%
Total client assets (000s)
173,383,000
$
150,628,000
$
15.1%
168,899,000
$
2.7%
As of
Includes 140, 145 and 141 independent contractors as of June 30, 2014, June 30, 2013, and
March 31, 2014. |
 Acquisition
Updates Investment Counsel
20
Closed April 3, 2014
Fully integrated into Stifel’s Public Finance business
Ranked #1 senior manager in the first six months of
2014 in California in terms of dollar volume and the
number of issues underwritten
Closed July 31, 2014
Business as usual through the balance of 2014
Integration and conversion efforts scheduled for
Q1 2015
Expected to close in the fourth quarter 2014
Working through customary regulatory, mutual fund
conversion, and account change processes |
 21
Acquisition Updates
Closed November 30, 2013
Strong asset and earnings growth since the acquisition
New asset management strategies and coordinated marketing
with Stifel’s existing asset management platform
Closed February 15, 2013
2Q 2014 was KBW’s best quarter since 1Q 2011
Improving market share –
Advised 7 of top 10 bank mergers
in 1H14.
Client facing and major systems integration completed
Closed October 31, 2013
Single branch location closed; Cost saving targets fully achieved
>5% yield on 1-4 family loan portfolio, short duration (avg ~1 year
to re-price)
Annualized run rate on pace to exceed target of $10mm/year
Closed July 1, 2013
Revenue expectations achieved |
 Q&A
|