Attached files
| file | filename |
|---|---|
| EX-99.3 - EX-99.3 - STIFEL FINANCIAL CORP | d207516dex993.htm |
| EX-99.1 - EX-99.1 - STIFEL FINANCIAL CORP | d207516dex991.htm |
| 8-K - 8-K - STIFEL FINANCIAL CORP | d207516d8k.htm |
Exhibit 99.2
Second Quarter 2021 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 & 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 | |||
| Loans and Lending Commitments - Allowance for Credit Losses |
12 | |||
| Consolidated Net Interest Income |
13 | |||
| Stifel Bancorp Net Interest Income |
14 | |||
| GAAP to Core Reconciliation |
15 | |||
| Footnotes |
16 | |||
| Disclaimer and Legal Notice |
17 | |||
| Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2021 Earnings Release | Page 1 of 17 |
Consolidated Financial Highlights
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
| (Unaudited, $ in 000s except per share information) | 6/30/2021 | 6/30/2020 | % Change | 3/31/2021 | % Change | 6/30/2021 | 6/30/2020 | % Change | ||||||||||||||||||||||||
| Net revenues |
$ | 1,153,136 | $ | 895,817 | 28.7 | % | $ | 1,134,789 | 1.6 | % | $ | 2,287,925 | $ | 1,808,851 | 26.5 | % | ||||||||||||||||
| Net income |
$ | 198,077 | $ | 107,887 | 83.6 | % | $ | 173,015 | 14.5 | % | $ | 371,092 | $ | 194,476 | 90.8 | % | ||||||||||||||||
| Preferred dividends |
8,289 | 4,843 | 71.2 | % | 8,289 | 0.0 | % | 16,578 | 9,687 | 71.1 | % | |||||||||||||||||||||
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| Net income available to common shareholders |
$ | 189,788 | $ | 103,044 | 84.2 | % | $ | 164,726 | 15.2 | % | $ | 354,514 | $ | 184,789 | 91.8 | % | ||||||||||||||||
| Earnings per diluted common share (1) |
$ | 1.67 | $ | 0.97 | 72.2 | % | $ | 1.47 | 13.6 | % | $ | 3.14 | $ | 1.71 | 83.6 | % | ||||||||||||||||
| Earnings per diluted common share available to common shareholders (1) |
$ | 1.60 | $ | 0.92 | 73.9 | % | $ | 1.40 | 14.3 | % | $ | 3.00 | $ | 1.63 | 84.0 | % | ||||||||||||||||
| Non-GAAP financial summary (2): |
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| Net revenues |
$ | 1,153,098 | $ | 895,817 | 28.7 | % | $ | 1,134,980 | 1.6 | % | $ | 2,288,078 | $ | 1,809,030 | 26.5 | % | ||||||||||||||||
| Net income |
$ | 210,356 | $ | 120,178 | 75.0 | % | $ | 184,714 | 13.9 | % | $ | 395,070 | $ | 216,955 | 82.1 | % | ||||||||||||||||
| Preferred dividends |
8,289 | 4,843 | 71.2 | % | 8,289 | 0.0 | % | 16,578 | 9,687 | 71.1 | % | |||||||||||||||||||||
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| Net income available to common shareholders |
$ | 202,067 | 115,335 | 75.2 | % | 176,425 | 14.5 | % | 378,492 | 207,268 | 82.6 | % | ||||||||||||||||||||
| Earnings per diluted common share (1) |
$ | 1.77 | $ | 1.08 | 63.9 | % | $ | 1.57 | 12.7 | % | $ | 3.34 | $ | 1.91 | 74.9 | % | ||||||||||||||||
| Earnings per diluted common share available to common shareholders (1) |
$ | 1.70 | $ | 1.03 | 65.0 | % | $ | 1.50 | 13.3 | % | $ | 3.20 | $ | 1.83 | 74.9 | % | ||||||||||||||||
| Weighted average number of common shares outstanding (1) |
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| Basic |
107,837 | 105,791 | 1.9 | % | 107,746 | 0.1 | % | 107,795 | 106,358 | 1.4 | % | |||||||||||||||||||||
| Diluted |
118,602 | 111,581 | 6.3 | % | 117,875 | 0.6 | % | 118,279 | 113,477 | 4.2 | % | |||||||||||||||||||||
| Period end common shares outstanding (1) |
104,865 | 102,855 | 2.0 | % | 105,215 | (0.3 | %) | 104,865 | 102,855 | 2.0 | % | |||||||||||||||||||||
| Cash dividends declared per common share (1) |
$ | 0.15 | $ | 0.11 | 36.4 | % | $ | 0.15 | 0.0 | % | $ | 0.30 | $ | 0.22 | 36.4 | % | ||||||||||||||||
| Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2021 Earnings Release | Page 2 of 17 |
GAAP Results of Operations (Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
| ($ in 000s except per share information) | 6/30/2021 | 6/30/2020 | % Change | 3/31/2021 | % Change | 6/30/2021 | 6/30/2020 | % Change | ||||||||||||||||||||||||
| Revenues: |
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| Commissions |
$ | 195,579 | $ | 177,028 | 10.5 | % | $ | 213,614 | (8.4 | %) | $ | 409,193 | $ | 388,126 | 5.4 | % | ||||||||||||||||
| Principal transactions |
152,597 | 166,017 | (8.1 | %) | 165,006 | (7.5 | %) | 317,603 | 304,683 | 4.2 | % | |||||||||||||||||||||
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| Brokerage revenues |
348,176 | 343,045 | 1.5 | % | 378,620 | (8.0 | %) | 726,796 | 692,809 | 4.9 | % | |||||||||||||||||||||
| Capital raising |
169,778 | 119,197 | 42.4 | % | 208,806 | (18.7 | %) | 378,584 | 222,593 | 70.1 | % | |||||||||||||||||||||
| Advisory fees |
206,665 | 97,838 | 111.2 | % | 130,482 | 58.4 | % | 337,147 | 173,910 | 93.9 | % | |||||||||||||||||||||
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| Investment banking |
376,443 | 217,035 | 73.4 | % | 339,288 | 11.0 | % | 715,731 | 396,503 | 80.5 | % | |||||||||||||||||||||
| Asset management and service fees |
295,869 | 198,939 | 48.7 | % | 278,147 | 6.4 | % | 574,016 | 436,714 | 31.4 | % | |||||||||||||||||||||
| Other income |
13,235 | 21,514 | (38.5 | %) | 25,634 | (48.4 | %) | 38,869 | 30,721 | 26.5 | % | |||||||||||||||||||||
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| Operating revenues |
1,033,723 | 780,533 | 32.4 | % | 1,021,689 | 1.2 | % | 2,055,412 | 1,556,747 | 32.0 | % | |||||||||||||||||||||
| Interest revenue |
133,591 | 128,368 | 4.1 | % | 127,540 | 4.7 | % | 261,131 | 289,545 | (9.8 | %) | |||||||||||||||||||||
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| Total revenues |
1,167,314 | 908,901 | 28.4 | % | 1,149,229 | 1.6 | % | 2,316,543 | 1,846,292 | 25.5 | % | |||||||||||||||||||||
| Interest expense |
14,178 | 13,084 | 8.4 | % | 14,440 | (1.8 | %) | 28,618 | 37,441 | (23.6 | %) | |||||||||||||||||||||
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| Net revenues |
1,153,136 | 895,817 | 28.7 | % | 1,134,789 | 1.6 | % | 2,287,925 | 1,808,851 | 26.5 | % | |||||||||||||||||||||
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| Non-interest expenses: |
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| Compensation and benefits |
692,054 | 547,174 | 26.5 | % | 697,914 | (0.8 | %) | 1,389,968 | 1,124,353 | 23.6 | % | |||||||||||||||||||||
| Occupancy and equipment rental |
70,971 | 66,264 | 7.1 | % | 72,032 | (1.5 | %) | 143,003 | 132,337 | 8.1 | % | |||||||||||||||||||||
| Communication and office supplies |
41,308 | 43,046 | (4.0 | %) | 41,825 | (1.2 | %) | 83,133 | 84,170 | (1.2 | %) | |||||||||||||||||||||
| Commissions and floor brokerage |
13,977 | 15,177 | (7.9 | %) | 15,703 | (11.0 | %) | 29,680 | 30,019 | (1.1 | %) | |||||||||||||||||||||
| Provision for credit losses |
(9,652 | ) | 19,210 | (150.2 | %) | (5,252 | ) | 83.8 | % | (14,904 | ) | 35,278 | (142.2 | %) | ||||||||||||||||||
| Other operating expenses |
80,453 | 61,986 | 29.8 | % | 84,675 | (5.0 | %) | 165,128 | 144,628 | 14.2 | % | |||||||||||||||||||||
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| Total non-interest expenses |
889,111 | 752,857 | 18.1 | % | 906,897 | (2.0 | %) | 1,796,008 | 1,550,785 | 15.8 | % | |||||||||||||||||||||
| Income before income taxes |
264,025 | 142,960 | 84.7 | % | 227,892 | 15.9 | % | 491,917 | 258,066 | 90.6 | % | |||||||||||||||||||||
| Provision for income taxes |
65,948 | 35,073 | 88.0 | % | 54,877 | 20.2 | % | 120,825 | 63,590 | 90.0 | % | |||||||||||||||||||||
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| Net income |
198,077 | 107,887 | 83.6 | % | 173,015 | 14.5 | % | 371,092 | 194,476 | 90.8 | % | |||||||||||||||||||||
| Preferred dividends |
8,289 | 4,843 | 71.2 | % | 8,289 | 0.0 | % | 16,578 | 9,687 | 71.1 | % | |||||||||||||||||||||
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| Net income available to common shareholders |
$ | 189,788 | $ | 103,044 | 84.2 | % | $ | 164,726 | 15.2 | % | $ | 354,514 | $ | 184,789 | 91.8 | % | ||||||||||||||||
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| Earnings per common share: (1) |
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| Basic |
$ | 1.76 | $ | 0.97 | 81.4 | % | $ | 1.53 | 15.0 | % | $ | 3.29 | $ | 1.74 | 89.1 | % | ||||||||||||||||
| Diluted |
$ | 1.60 | $ | 0.92 | 73.9 | % | $ | 1.40 | 14.3 | % | $ | 3.00 | $ | 1.63 | 84.0 | % | ||||||||||||||||
| Weighted average number of common shares outstanding: (1) |
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| Basic |
107,837 | 105,791 | 1.9 | % | 107,746 | 0.1 | % | 107,795 | 106,358 | 1.4 | % | |||||||||||||||||||||
| Diluted |
118,602 | 111,581 | 6.3 | % | 117,875 | 0.6 | % | 118,279 | 113,477 | 4.2 | % | |||||||||||||||||||||
| Cash dividends declared per common share (1) |
$ | 0.15 | $ | 0.11 | 36.4 | % | $ | 0.15 | 0.0 | % | $ | 0.30 | $ | 0.22 | 36.4 | % | ||||||||||||||||
| Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2021 Earnings Release | Page 3 of 17 |
Non-GAAP Results of Operations (Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
| ($ in 000s except per share information) | 6/30/2021 | 6/30/2020 | % Change | 3/31/2021 | % Change | 6/30/2021 | 6/30/2020 | % Change | ||||||||||||||||||||||||
| Revenues: |
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| Commissions |
$ | 195,579 | $ | 177,028 | 10.5 | % | $ | 213,614 | (8.4 | %) | $ | 409,193 | $ | 388,126 | 5.4 | % | ||||||||||||||||
| Principal transactions |
152,597 | 166,017 | (8.1 | %) | 165,006 | (7.5 | %) | 317,603 | 304,683 | 4.2 | % | |||||||||||||||||||||
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| Brokerage revenues |
348,176 | 343,045 | 1.5 | % | 378,620 | (8.0 | %) | 726,796 | 692,809 | 4.9 | % | |||||||||||||||||||||
| Capital raising |
169,778 | 119,197 | 42.4 | % | 208,806 | (18.7 | %) | 378,584 | 222,593 | 70.1 | % | |||||||||||||||||||||
| Advisory fees |
206,665 | 97,838 | 111.2 | % | 130,482 | 58.4 | % | 337,147 | 173,910 | 93.9 | % | |||||||||||||||||||||
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| Investment banking |
376,443 | 217,035 | 73.4 | % | 339,288 | 11.0 | % | 715,731 | 396,503 | 80.5 | % | |||||||||||||||||||||
| Asset management and service fees |
295,869 | 198,939 | 48.7 | % | 278,147 | 6.4 | % | 574,016 | 436,714 | 31.4 | % | |||||||||||||||||||||
| Other income |
13,197 | 21,514 | (38.7 | %) | 25,700 | (48.6 | %) | 38,897 | 30,900 | 25.9 | % | |||||||||||||||||||||
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| Operating revenues |
1,033,685 | 780,533 | 32.4 | % | 1,021,755 | 1.2 | % | 2,055,440 | 1,556,926 | 32.0 | % | |||||||||||||||||||||
| Interest revenue |
133,591 | 128,368 | 4.1 | % | 127,540 | 4.7 | % | 261,131 | 289,545 | (9.8 | %) | |||||||||||||||||||||
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| Total revenues |
1,167,276 | 908,901 | 28.4 | % | 1,149,295 | 1.6 | % | 2,316,571 | 1,846,471 | 25.5 | % | |||||||||||||||||||||
| Interest expense |
14,178 | 13,084 | 8.4 | % | 14,315 | (1.0 | %) | 28,493 | 37,441 | (23.9 | %) | |||||||||||||||||||||
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| Net revenues |
1,153,098 | 895,817 | 28.7 | % | 1,134,980 | 1.6 | % | 2,288,078 | 1,809,030 | 26.5 | % | |||||||||||||||||||||
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| Non-interest expenses: |
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| Compensation and benefits |
685,935 | 537,464 | 27.6 | % | 691,740 | (0.8 | %) | 1,377,675 | 1,108,216 | 24.3 | % | |||||||||||||||||||||
| Occupancy and equipment rental |
70,938 | 65,854 | 7.7 | % | 72,002 | (1.5 | %) | 142,939 | 131,759 | 8.5 | % | |||||||||||||||||||||
| Communication and office supplies |
41,232 | 43,008 | (4.1 | %) | 41,825 | (1.4 | %) | 83,057 | 83,773 | (0.9 | %) | |||||||||||||||||||||
| Commissions and floor brokerage |
13,977 | 15,177 | (7.9 | %) | 15,703 | (11.0 | %) | 29,680 | 30,019 | (1.1 | %) | |||||||||||||||||||||
| Provision for credit losses |
(9,652 | ) | 19,210 | (150.2 | %) | (5,252 | ) | 83.8 | % | (14,904 | ) | 35,278 | (142.2 | %) | ||||||||||||||||||
| Other operating expenses |
70,275 | 55,885 | 25.7 | % | 75,641 | (7.1 | %) | 145,917 | 132,150 | 10.4 | % | |||||||||||||||||||||
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| Total non-interest expenses |
872,705 | 736,598 | 18.5 | % | 891,659 | (2.1 | %) | 1,764,364 | 1,521,195 | 16.0 | % | |||||||||||||||||||||
| Income before income taxes |
280,393 | 159,219 | 76.1 | % | 243,321 | 15.2 | % | 523,714 | 287,835 | 81.9 | % | |||||||||||||||||||||
| Provision for income taxes |
70,037 | 39,041 | 79.4 | % | 58,607 | 19.5 | % | 128,644 | 70,880 | 81.5 | % | |||||||||||||||||||||
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| Net income |
210,356 | 120,178 | 75.0 | % | 184,714 | 13.9 | % | 395,070 | 216,955 | 82.1 | % | |||||||||||||||||||||
| Preferred dividends |
8,289 | 4,843 | 71.2 | % | 8,289 | 0.0 | % | 16,578 | 9,687 | 71.1 | % | |||||||||||||||||||||
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| Net income available to common shareholders |
$ | 202,067 | $ | 115,335 | 75.2 | % | $ | 176,425 | 14.5 | % | $ | 378,492 | $ | 207,268 | 82.6 | % | ||||||||||||||||
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| Earnings per common share: (1) |
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| Basic |
$ | 1.87 | $ | 1.09 | 71.6 | % | $ | 1.64 | 14.0 | % | $ | 3.51 | $ | 1.95 | 80.0 | % | ||||||||||||||||
| Diluted |
$ | 1.70 | $ | 1.03 | 65.0 | % | $ | 1.50 | 13.3 | % | $ | 3.20 | $ | 1.83 | 74.9 | % | ||||||||||||||||
| Weighted average number of common shares outstanding: (1) |
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| Basic |
107,837 | 105,791 | 1.9 | % | 107,746 | 0.1 | % | 107,795 | 106,358 | 1.4 | % | |||||||||||||||||||||
| Diluted |
118,602 | 111,581 | 6.3 | % | 117,875 | 0.6 | % | 118,279 | 113,477 | 4.2 | % | |||||||||||||||||||||
| Cash dividends declared per common share (1) |
$ | 0.15 | $ | 0.11 | 36.4 | % | $ | 0.15 | 0.0 | % | $ | 0.30 | $ | 0.22 | 36.4 | % | ||||||||||||||||
| Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2021 Earnings Release | Page 4 of 17 |
Consolidated Financial Summary
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
| (Unaudited, $ in 000s except percentages) | 6/30/2021 | 6/30/2020 | % Change | 3/31/2021 | % Change | 6/30/2021 | 6/30/2020 | % Change | ||||||||||||||||||||||||
| Net revenues: |
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| Global Wealth Management |
$ | 637,567 | $ | 505,782 | 26.1 | % | $ | 631,495 | 1.0 | % | $ | 1,269,062 | $ | 1,088,738 | 16.6 | % | ||||||||||||||||
| Institutional Group |
520,811 | 398,096 | 30.8 | % | 506,081 | 2.9 | % | 1,026,892 | 730,334 | 40.6 | % | |||||||||||||||||||||
| Other |
(5,242 | ) | (8,061 | ) | (35.0 | %) | (2,787 | ) | 88.1 | % | (8,029 | ) | (10,221 | ) | (21.4 | %) | ||||||||||||||||
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| Total net revenues |
$ | 1,153,136 | $ | 895,817 | 28.7 | % | $ | 1,134,789 | 1.6 | % | $ | 2,287,925 | $ | 1,808,851 | 26.5 | % | ||||||||||||||||
| Operating expenses: |
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| Global Wealth Management |
$ | 410,262 | $ | 349,457 | 17.4 | % | $ | 408,264 | 0.5 | % | $ | 818,526 | $ | 738,246 | 10.9 | % | ||||||||||||||||
| Institutional Group |
379,317 | 315,047 | 20.4 | % | 388,893 | (2.5 | %) | 768,210 | 605,545 | 26.9 | % | |||||||||||||||||||||
| Other |
99,532 | 88,353 | 12.7 | % | 109,740 | (9.3 | %) | 209,272 | 206,994 | 1.1 | % | |||||||||||||||||||||
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| Total operating expenses |
$ | 889,111 | $ | 752,857 | 18.1 | % | $ | 906,897 | (2.0 | %) | $ | 1,796,008 | $ | 1,550,785 | 15.8 | % | ||||||||||||||||
| Operating contribution: |
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| Global Wealth Management |
$ | 227,305 | $ | 156,325 | 45.4 | % | $ | 223,231 | 1.8 | % | $ | 450,536 | $ | 350,492 | 28.5 | % | ||||||||||||||||
| Institutional Group |
141,494 | 83,049 | 70.4 | % | 117,188 | 20.7 | % | 258,682 | 124,789 | 107.3 | % | |||||||||||||||||||||
| Other |
(104,774 | ) | (96,414 | ) | 8.7 | % | (112,527 | ) | (6.9 | %) | (217,301 | ) | (217,215 | ) | 0.0 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Income before income taxes |
$ | 264,025 | $ | 142,960 | 84.7 | % | $ | 227,892 | 15.9 | % | $ | 491,917 | $ | 258,066 | 90.6 | % | ||||||||||||||||
| Financial ratios: |
||||||||||||||||||||||||||||||||
| Compensation and benefits |
60.0 | % | 61.1 | % | (170 | ) | 61.5 | % | 290 | 60.8 | % | 62.2 | % | (140 | ) | |||||||||||||||||
| Non-compensation operating expenses |
17.1 | % | 22.9 | % | (580 | ) | 18.4 | % | (90 | ) | 17.7 | % | 23.5 | % | (580 | ) | ||||||||||||||||
| Income before income taxes |
22.9 | % | 16.0 | % | 750 | 20.1 | % | (200 | ) | 21.5 | % | 14.3 | % | 720 | ||||||||||||||||||
| Effective tax rate |
25.0 | % | 24.5 | % | (70 | ) | 24.1 | % | 440 | 24.6 | % | 24.6 | % | — | ||||||||||||||||||
| Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2021 Earnings Release | Page 5 of 17 |
Consolidated Financial Information and Metrics
| Three Months Ended | ||||||||||||||||||||
| (Unaudited, $ in 000s except percentages and per share data) | 6/30/2021 | 6/30/2020 | % Change | 3/31/2021 | % Change | |||||||||||||||
| Financial Information: |
||||||||||||||||||||
| Total assets |
$ | 29,744,764 | $ | 25,624,225 | 16.1 | % | $ | 28,141,581 | 5.7 | % | ||||||||||
| Total shareholders’ equity |
$ | 4,508,790 | $ | 3,884,060 | 16.1 | % | $ | 4,318,872 | 4.4 | % | ||||||||||
| Total common equity |
$ | 3,973,790 | $ | 3,349,060 | 18.7 | % | $ | 3,783,872 | 5.0 | % | ||||||||||
| Less: Goodwill and intangible assets |
$ | (1,314,818 | ) | $ | (1,330,543 | ) | (1.2 | %) | $ | (1,319,089 | ) | (0.3 | %) | |||||||
| Less: DTL on goodwill and intangible assets |
$ | 54,049 | $ | 49,175 | 9.9 | % | $ | 52,651 | 2.7 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Tangible common equity |
$ | 2,713,021 | $ | 2,067,692 | 31.2 | % | $ | 2,517,434 | 7.8 | % | ||||||||||
| Preferred equity |
$ | 535,000 | $ | 535,000 | 0.0 | % | $ | 535,000 | 0.0 | % | ||||||||||
| Financial Metrics: |
||||||||||||||||||||
| Book value per common share (1)(3) |
$ | 37.89 | $ | 32.56 | 16.4 | % | $ | 35.96 | 5.4 | % | ||||||||||
| Tangible book value per common share (1) (3) |
$ | 25.87 | $ | 20.11 | 28.6 | % | $ | 23.93 | 8.1 | % | ||||||||||
| Return on common equity (4) |
19.4 | % | 12.6 | % | 17.6 | % | ||||||||||||||
| Non-GAAP return on common equity (2)(4) |
20.6 | % | 14.1 | % | 18.8 | % | ||||||||||||||
| Return on tangible common equity (5) |
28.6 | % | 20.7 | % | 26.5 | % | ||||||||||||||
| Non-GAAP return on common equity (2)(5) |
30.5 | % | 23.2 | % | 28.4 | % | ||||||||||||||
| Pre-tax margin on net revenues |
22.9 | % | 16.0 | % | 20.1 | % | ||||||||||||||
| Non-GAAP pre-tax margin on net revenues (2) |
24.3 | % | 17.8 | % | 21.4 | % | ||||||||||||||
| Effective tax rate |
25.0 | % | 24.5 | % | 24.1 | % | ||||||||||||||
| Non-GAAP effective tax rate (2) |
25.0 | % | 24.5 | % | 24.1 | % | ||||||||||||||
| Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2021 Earnings Release | Page 6 of 17 |
Regulatory Capital
| Three Months Ended | ||||||||||||||||||||
| (Unaudited, $ in 000s except percentages) | 6/30/2021 | 6/30/2020 | % Change | 3/31/2021 | % Change | |||||||||||||||
| SF Regulatory Capital (6): |
||||||||||||||||||||
| Common equity tier 1 capital |
$ | 2,672,682 | $ | 2,071,121 | 29.0 | % | $ | 2,498,655 | 7.0 | % | ||||||||||
| Tier 1 capital |
$ | 3,207,682 | $ | 2,606,121 | 23.1 | % | $ | 3,033,655 | 5.7 | % | ||||||||||
| Risk-weighted assets |
$ | 16,952,415 | $ | 13,521,861 | 25.4 | % | $ | 15,655,984 | 8.3 | % | ||||||||||
| Common equity tier 1 capital ratio |
15.8 | % | 15.3 | % | 16.0 | % | ||||||||||||||
| Tier 1 risk based capital ratio |
18.9 | % | 19.3 | % | 19.4 | % | ||||||||||||||
| Tier 1 leverage capital ratio |
11.7 | % | 11.0 | % | 11.5 | % | ||||||||||||||
| Stifel Bank & Trust Regulatory Capital (6): |
||||||||||||||||||||
| Common equity tier 1 capital |
$ | 1,069,763 | $ | 1,058,401 | 1.1 | % | $ | 1,044,894 | 2.4 | % | ||||||||||
| Tier 1 capital |
$ | 1,069,763 | $ | 1,058,401 | 1.1 | % | $ | 1,044,894 | 2.4 | % | ||||||||||
| Risk-weighted assets |
$ | 9,958,105 | $ | 8,538,099 | 16.6 | % | $ | 9,428,239 | 5.6 | % | ||||||||||
| Common equity tier 1 capital ratio |
10.7 | % | 12.4 | % | 11.1 | % | ||||||||||||||
| Tier 1 risk based capital ratio |
11.8 | % | 13.9 | % | 12.4 | % | ||||||||||||||
| Tier 1 leverage capital ratio |
7.0 | % | 7.2 | % | 7.1 | % | ||||||||||||||
| Stifel Bank Regulatory Capital (6): |
||||||||||||||||||||
| Common equity tier 1 capital |
$ | 326,622 | $ | 196,916 | 65.9 | % | $ | 280,718 | 16.4 | % | ||||||||||
| Tier 1 capital |
$ | 326,622 | $ | 196,916 | 65.9 | % | $ | 280,718 | 16.4 | % | ||||||||||
| Risk-weighted assets |
$ | 1,593,962 | $ | 1,047,142 | 52.2 | % | $ | 1,517,312 | 5.1 | % | ||||||||||
| Common equity tier 1 capital ratio |
20.5 | % | 18.8 | % | 18.5 | % | ||||||||||||||
| Tier 1 risk based capital ratio |
20.9 | % | 20.1 | % | 19.2 | % | ||||||||||||||
| Tier 1 leverage capital ratio |
7.1 | % | 7.1 | % | 7.3 | % | ||||||||||||||
| Stifel Net Capital: |
||||||||||||||||||||
| Net capital |
$ | 614,500 | $ | 449,400 | 36.7 | % | $ | 570,300 | 7.8 | % | ||||||||||
| Excess net capital |
$ | 584,000 | $ | 425,200 | 37.3 | % | $ | 541,600 | 7.8 | % | ||||||||||
| Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2021 Earnings Release | Page 7 of 17 |
Global Wealth Management - Summary Results of Operations
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
| (Unaudited, $ in 000s except percentages) | 6/30/2021 | 6/30/2020 | % Change | 3/31/2021 | % Change | 6/30/2021 | 6/30/2020 | % Change | ||||||||||||||||||||||||
| Revenues: |
||||||||||||||||||||||||||||||||
| Commissions |
$ | 139,653 | $ | 116,156 | 20.2 | % | $ | 147,505 | (5.3 | %) | $ | 287,158 | $ | 253,053 | 13.5 | % | ||||||||||||||||
| Principal transactions |
55,209 | 42,967 | 28.5 | % | 53,599 | 3.0 | % | 108,808 | 85,949 | 26.6 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Brokerage revenues |
194,862 | 159,123 | 22.5 | % | 201,104 | (3.1 | %) | 395,966 | 339,002 | 16.8 | % | |||||||||||||||||||||
| Asset management and service fees |
295,847 | 198,921 | 48.7 | % | 278,109 | 6.4 | % | 573,956 | 436,681 | 31.4 | % | |||||||||||||||||||||
| Net interest |
124,686 | 121,564 | 2.6 | % | 117,775 | 5.9 | % | 242,461 | 260,246 | (6.8 | %) | |||||||||||||||||||||
| Investment banking (7) |
11,898 | 8,016 | 48.4 | % | 13,549 | (12.2 | %) | 25,447 | 18,349 | 38.7 | % | |||||||||||||||||||||
| Other income |
10,274 | 18,158 | (43.4 | %) | 20,958 | (51.0 | %) | 31,232 | 34,460 | (9.4 | %) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Net revenues |
637,567 | 505,782 | 26.1 | % | 631,495 | 1.0 | % | 1,269,062 | 1,088,738 | 16.6 | % | |||||||||||||||||||||
| Non-interest expenses: |
||||||||||||||||||||||||||||||||
| Compensation and benefits |
341,367 | 258,291 | 32.2 | % | 336,721 | 1.4 | % | 678,088 | 556,661 | 21.8 | % | |||||||||||||||||||||
| Non-compensation operating expenses |
68,895 | 91,166 | (24.4 | %) | 71,543 | (3.7 | %) | 140,438 | 181,585 | (22.7 | %) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total non-interest expenses |
410,262 | 349,457 | 17.4 | % | 408,264 | 0.5 | % | 818,526 | 738,246 | 10.9 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Income before income taxes |
$ | 227,305 | $ | 156,325 | 45.4 | % | $ | 223,231 | 1.8 | % | $ | 450,536 | $ | 350,492 | 28.5 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| As a percentage of net revenues: |
||||||||||||||||||||||||||||||||
| Compensation and benefits |
53.5 | % | 51.1 | % | 240 | 53.3 | % | 20 | 53.4 | % | 51.1 | % | 230 | |||||||||||||||||||
| Non-compensation operating expenses |
10.8 | % | 18.0 | % | (720 | ) | 11.4 | % | (60 | ) | 11.1 | % | 16.7 | % | (560 | ) | ||||||||||||||||
| Income before income taxes |
35.7 | % | 30.9 | % | 480 | 35.3 | % | 40 | 35.5 | % | 32.2 | % | 330 | |||||||||||||||||||
| Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2021 Earnings Release | Page 8 of 17 |
Global Wealth Management - Statistical Information
| Three Months Ended | ||||||||||||||||||||
| (Unaudited, $ in 000s except financial advisors and locations) | 6/30/2021 | 6/30/2020 | % Change | 3/31/2021 | % Change | |||||||||||||||
| Financial advisors |
2,190 | 2,138 | 2.4 | % | 2,182 | 0.4 | % | |||||||||||||
| Independent contractors |
92 | 94 | (2.1 | %) | 92 | 0.0 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total financial advisors |
2,282 | 2,232 | 2.2 | % | 2,274 | 0.4 | % | |||||||||||||
| Locations |
446 | 447 | (0.2 | %) | 446 | 0.0 | % | |||||||||||||
| Total client assets |
$ | 402,442,000 | $ | 306,235,000 | 31.4 | % | $ | 378,615,000 | 6.3 | % | ||||||||||
| Fee-based client assets |
$ | 148,838,000 | $ | 106,218,000 | 40.1 | % | $ | 137,804,000 | 8.0 | % | ||||||||||
| Brokerage assets |
$ | 253,604,000 | $ | 200,017,000 | 26.8 | % | $ | 240,811,000 | 5.3 | % | ||||||||||
| Client money market and insured product |
$ | 23,615,000 | $ | 18,664,000 | 26.5 | % | $ | 23,616,000 | nm | |||||||||||
| Secured client lending (8) |
$ | 3,451,625 | $ | 2,563,773 | 34.6 | % | $ | 3,124,545 | 10.5 | % | ||||||||||
| Asset Management and Service Fee Revenue ($ in 000s): |
||||||||||||||||||||
| Private Client Group (9) |
$ | 249,273 | $ | 164,403 | 51.6 | % | $ | 233,805 | 6.6 | % | ||||||||||
| Asset Management |
32,202 | 23,769 | 35.5 | % | 30,114 | 6.9 | % | |||||||||||||
| Third-party Bank Sweep Program |
1,516 | 522 | 190.4 | % | 2,102 | (27.9 | %) | |||||||||||||
| Other (10) |
12,878 | 10,245 | 25.7 | % | 12,126 | 6.2 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total asset management and service fee revenues |
$ | 295,869 | $ | 198,939 | 48.7 | % | $ | 278,147 | 6.4 | % | ||||||||||
| Fee-based Assets ($ in millions): |
||||||||||||||||||||
| Private Client Group (9) |
$ | 129,565 | 91,360 | 41.8 | % | $ | 119,836 | 8.1 | % | |||||||||||
| Asset Management |
33,289 | 25,706 | 29.5 | % | 31,115 | 7.0 | % | |||||||||||||
| Elimination (11) |
(14,015 | ) | (10,848 | ) | 29.2 | % | (13,147 | ) | 6.6 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total fee-based assets |
$ | 148,839 | $ | 106,218 | 40.1 | % | $ | 137,804 | 8.0 | % | ||||||||||
| Third-party Bank Sweep Program |
$ | 5,795 | $ | 3,007 | 92.7 | % | $ | 6,455 | (10.2 | %) | ||||||||||
| ROA (bps) (12): |
||||||||||||||||||||
| Private Client Group (9) |
83.2 | 81.6 | 83.5 | |||||||||||||||||
| Asset Management |
38.7 | 37.0 | 38.7 | |||||||||||||||||
| Third-party Bank Sweep Program |
9.9 | 7.1 | 12.3 | |||||||||||||||||
| Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2021 Earnings Release | Page 9 of 17 |
| Institutional Group - Summary Results of Operations |
||||||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
| (Unaudited, $ in 000s except percentages) | 6/30/2021 | 6/30/2020 | % Change | 3/31/2021 | % Change | 6/30/2021 | 6/30/2020 | % Change | ||||||||||||||||||||||||
| Revenues: |
||||||||||||||||||||||||||||||||
| Commissions |
$ | 55,926 | $ | 60,875 | (8.1 | %) | $ | 66,109 | (15.4 | %) | $ | 122,035 | $ | 135,073 | (9.7 | %) | ||||||||||||||||
| Principal transactions |
97,388 | 123,049 | (20.9 | %) | 111,407 | (12.6 | %) | 208,795 | 218,734 | (4.5 | %) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Brokerage revenues |
153,314 | 183,924 | (16.6 | %) | 177,516 | (13.6 | %) | 330,830 | 353,807 | (6.5 | %) | |||||||||||||||||||||
| Capital raising |
157,880 | 111,181 | 42.0 | % | 195,257 | (19.1 | %) | 353,137 | 204,263 | 72.9 | % | |||||||||||||||||||||
| Advisory fees |
206,665 | 97,838 | 111.2 | % | 130,482 | 58.4 | % | 337,147 | 173,891 | 93.9 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Investment banking |
364,545 | 209,019 | 74.4 | % | 325,739 | 11.9 | % | 690,284 | 378,154 | 82.5 | % | |||||||||||||||||||||
| Other income (13) |
2,952 | 5,153 | (42.7 | %) | 2,826 | 4.5 | % | 5,778 | (1,627 | ) | (455.1 | %) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Net revenues |
520,811 | 398,096 | 30.8 | % | 506,081 | 2.9 | % | 1,026,892 | 730,334 | 40.6 | % | |||||||||||||||||||||
| Non-interest expenses: |
||||||||||||||||||||||||||||||||
| Compensation and benefits |
299,469 | 241,420 | 24.0 | % | 301,624 | (0.7 | %) | 601,093 | 447,408 | 34.4 | % | |||||||||||||||||||||
| Non-compensation operating expenses |
79,848 | 73,627 | 8.4 | % | 87,269 | (8.5 | %) | 167,117 | 158,137 | 5.7 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total non-interest expenses |
379,317 | 315,047 | 20.4 | % | 388,893 | (2.5 | %) | 768,210 | 605,545 | 26.9 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Income before income taxes |
$ | 141,494 | $ | 83,049 | 70.4 | % | $ | 117,188 | 20.7 | % | $ | 258,682 | $ | 124,789 | 107.3 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| As a percentage of net revenues: |
||||||||||||||||||||||||||||||||
| Compensation and benefits |
57.5 | % | 60.6 | % | (310 | ) | 59.6 | % | (210 | ) | 58.5 | % | 61.3 | % | (280 | ) | ||||||||||||||||
| Non-compensation operating expenses |
15.3 | % | 18.5 | % | (320 | ) | 17.2 | % | (190 | ) | 16.3 | % | 21.6 | % | (530 | ) | ||||||||||||||||
| Income before income taxes |
27.2 | % | 20.9 | % | 630 | 23.2 | % | 400 | 25.2 | % | 17.1 | % | 810 | |||||||||||||||||||
| Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2021 Earnings Release | Page 10 of 17 |
Stifel Bancorp - Financial Information and Credit Metrics
| Three Months Ended | ||||||||||||||||||||
| (Unaudited, $ in 000s except percentages) | 6/30/2021 | 6/30/2020 | % Change | 3/31/2021 | % Change | |||||||||||||||
| Stifel Bancorp Financial Information: |
||||||||||||||||||||
| Total assets |
$ | 21,250,293 | $ | 18,123,326 | 17.3 | % | $ | 20,500,414 | 3.7 | % | ||||||||||
| Total shareholder’s equity |
$ | 1,563,380 | $ | 1,378,096 | 13.4 | % | $ | 1,474,473 | 6.0 | % | ||||||||||
| Total loans, net (includes loans held for sale) |
$ | 13,164,958 | $ | 10,923,212 | 20.5 | % | $ | 12,422,234 | 6.0 | % | ||||||||||
| Commercial and industrial |
4,950,516 | 4,149,307 | 19.3 | % | 4,923,494 | 0.5 | % | |||||||||||||
| Residental real estate |
4,567,467 | 3,710,657 | 23.1 | % | 4,158,033 | 9.8 | % | |||||||||||||
| Securities-based loans |
2,331,737 | 1,716,786 | 35.8 | % | 2,089,747 | 11.6 | % | |||||||||||||
| Commercial real estate |
370,517 | 406,788 | (8.9 | %) | 374,736 | (1.1 | %) | |||||||||||||
| Other |
678,570 | 590,759 | 14.9 | % | 669,183 | 1.4 | % | |||||||||||||
| Loans held for sale |
394,017 | 474,899 | (17.0 | %) | 330,521 | 19.2 | % | |||||||||||||
| Investment securities |
$ | 7,264,849 | $ | 6,255,286 | 16.1 | % | $ | 6,948,574 | 4.6 | % | ||||||||||
| Available-for-sale securities, at fair value |
2,279,678 | 3,172,160 | (28.1 | %) | 2,189,664 | 4.1 | % | |||||||||||||
| Held-to-maturity securities, at amortized cost |
4,985,171 | 3,083,126 | 61.7 | % | 4,758,910 | 4.8 | % | |||||||||||||
| Total deposits |
$ | 19,608,800 | $ | 16,302,821 | 20.3 | % | $ | 18,715,133 | 4.8 | % | ||||||||||
| Demand deposits (interest-bearing) |
18,908,576 | 15,855,029 | 19.3 | % | 18,125,863 | 4.3 | % | |||||||||||||
| Demand deposits (non interest-bearing) |
643,890 | 287,251 | 124.2 | % | 524,338 | 22.8 | % | |||||||||||||
| Certificates of deposit |
56,334 | 160,541 | (64.9 | %) | 64,932 | (13.2 | %) | |||||||||||||
| Credit Metrics: |
||||||||||||||||||||
| Allowance for credit losses |
$ | 115,190 | $ | 139,949 | (17.7 | %) | $ | 129,109 | (10.8 | %) | ||||||||||
| Allowance as a percentage of retained loans |
0.90 | % | 1.32 | % | 1.06 | % | ||||||||||||||
| Net charge-offs as a percentage of average loans |
0.03 | % | 0.00 | % | 0.01 | % | ||||||||||||||
| Total nonperforming assets |
$ | 9,808 | $ | 14,602 | (32.8 | %) | $ | 13,756 | (28.7 | %) | ||||||||||
| Nonperforming assets as a percentage of total assets |
0.05 | % | 0.08 | % | 0.07 | % | ||||||||||||||
| Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2021 Earnings Release | Page 11 of 17 |
Loans and Lending Commitments - Allowance for Credit Losses
| Loans and Lending | ||||||||||||||||
| (Unaudited, $ in 000s except percentages) | Commitments | ACL | ACL % | Q2 Provision | ||||||||||||
| Commercial and industrial |
$ | 4,950,516 | $ | 46,943 | 0.9 | % | $ | (5,105 | ) | |||||||
| Residental real estate |
4,567,467 | 21,267 | 0.5 | % | 4,602 | |||||||||||
| Securities-based loans |
2,331,737 | 2,519 | 0.1 | % | 350 | |||||||||||
| Commercial real estate |
370,517 | 11,903 | 3.2 | % | (1,157 | ) | ||||||||||
| Other |
678,570 | 16,564 | 2.4 | % | (2,894 | ) | ||||||||||
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|
|
|||||||||||
| Loans held for investment, gross |
12,898,807 | 99,196 | 0.8 | % | (4,204 | ) | ||||||||||
| Loans held for sale |
394,017 | |||||||||||||||
|
|
|
|||||||||||||||
| Total loans, gross |
13,292,824 | |||||||||||||||
| Lending commitments |
2,827,000 | 15,994 | 0.6 | % | (5,448 | ) | ||||||||||
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|||||||||||
| Loans and lending commitments |
$ | 16,119,824 | $ | 115,190 | $ | (9,652 | ) | |||||||||
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|||||||||||
| Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2021 Earnings Release | Page 12 of 17 |
Consolidated Net Interest Income
| Three Months Ended | ||||||||||||||||||||||||||||||||||||
| June 30, 2021 | June 30, 2020 | March 31, 2021 | ||||||||||||||||||||||||||||||||||
| ($ in millions, except percentages) | 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 |
$ | 1,249.2 | $ | 0.8 | 0.26 | % | $ | 1,674.0 | $ | 1.0 | 0.24 | % | $ | 1,812.2 | $ | 0.9 | 0.20 | % | ||||||||||||||||||
| Financial instruments owned |
979.7 | 2.5 | 1.04 | % | 761.7 | 2.9 | 1.50 | % | 807.8 | 2.9 | 1.43 | % | ||||||||||||||||||||||||
| Margin balances |
1,059.3 | 6.3 | 2.37 | % | 981.5 | 6.4 | 2.59 | % | 961.6 | 6.1 | 2.53 | % | ||||||||||||||||||||||||
| Investments: |
||||||||||||||||||||||||||||||||||||
| Asset-backed securities |
5,132.9 | 22.8 | 1.77 | % | 4,842.0 | 32.6 | 2.70 | % | 4,724.6 | 21.3 | 1.80 | % | ||||||||||||||||||||||||
| Mortgage-backed securities |
1,070.5 | 4.1 | 1.53 | % | 877.2 | 4.6 | 2.09 | % | 905.9 | 3.3 | 1.44 | % | ||||||||||||||||||||||||
| Corporate fixed income securities |
709.7 | 4.6 | 2.61 | % | 648.9 | 4.2 | 2.59 | % | 639.8 | 5.4 | 3.37 | % | ||||||||||||||||||||||||
| Other |
5.8 | — | 2.11 | % | 17.5 | 0.1 | 2.14 | % | 6.4 | — | 2.06 | % | ||||||||||||||||||||||||
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|
|||||||||||||||||||
| Total investments |
6,918.9 | 31.5 | 1.82 | % | 6,385.6 | 41.5 | 2.60 | % | 6,276.7 | 30.0 | 1.91 | % | ||||||||||||||||||||||||
| Loans: |
||||||||||||||||||||||||||||||||||||
| Commercial and industrial |
5,055.4 | 43.3 | 3.43 | % | 4,095.4 | 31.8 | 3.10 | % | 4,573.6 | 39.5 | 3.45 | % | ||||||||||||||||||||||||
| Residental real estate |
4,296.5 | 28.5 | 2.66 | % | 3,589.2 | 25.6 | 2.85 | % | 3,994.5 | 27.0 | 2.71 | % | ||||||||||||||||||||||||
| Securities-based loans |
2,214.1 | 10.8 | 1.94 | % | 1,789.2 | 9.9 | 2.22 | % | 2,002.3 | 9.7 | 1.94 | % | ||||||||||||||||||||||||
| Commercial real estate |
417.7 | 3.0 | 2.89 | % | 402.6 | 4.0 | 3.98 | % | 371.0 | 3.3 | 3.51 | % | ||||||||||||||||||||||||
| Loans held for sale |
286.7 | 1.6 | 2.20 | % | 486.7 | 3.3 | 2.68 | % | 534.4 | 2.8 | 2.09 | % | ||||||||||||||||||||||||
| Other |
688.6 | 5.2 | 3.03 | % | 546.3 | 4.6 | 3.36 | % | 639.9 | 4.9 | 3.07 | % | ||||||||||||||||||||||||
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|||||||||||||||||||
| Total loans |
12,959.0 | 92.4 | 2.85 | % | 10,909.4 | 79.2 | 2.90 | % | 12,115.7 | 87.2 | 2.88 | % | ||||||||||||||||||||||||
| Other interest-bearing assets |
698.9 | 0.1 | 0.01 | % | 476.3 | (2.6 | ) | (2.15 | %) | 596.2 | 0.4 | 0.32 | % | |||||||||||||||||||||||
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|||||||||||||||||||
| Total interest-bearing assets/ interest income |
23,865.0 | 133.6 | 2.24 | % | 21,188.5 | 128.4 | 2.42 | % | 22,570.2 | 127.5 | 2.26 | % | ||||||||||||||||||||||||
| Interest-bearing liabilities: |
||||||||||||||||||||||||||||||||||||
| Senior notes |
1,112.7 | 12.0 | 4.30 | % | 1,195.0 | 13.1 | 4.38 | % | 1,112.5 | 12.1 | 4.35 | % | ||||||||||||||||||||||||
| Deposits |
18,637.1 | 1.2 | 0.03 | % | 16,676.5 | 2.3 | 0.05 | % | 17,629.6 | 1.3 | 0.03 | % | ||||||||||||||||||||||||
| Federal Home Loan advances |
60.3 | — | 0.27 | % | 250.8 | 0.7 | 1.09 | % | 15.8 | — | 0.29 | % | ||||||||||||||||||||||||
| Other interest-bearing liabilities |
1,441.9 | 1.0 | 0.26 | % | 1,190.6 | (3.0 | ) | (0.99 | %) | 1,209.6 | 1.0 | 0.34 | % | |||||||||||||||||||||||
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| Total interest-bearing liabilities/ interest expense |
$ | 21,252.0 | 14.2 | 0.27 | % | $ | 19,312.9 | 13.1 | 0.27 | % | $ | 19,967.5 | 14.4 | 0.29 | % | |||||||||||||||||||||
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| Net interest income/margin |
$ | 119.4 | 2.00 | % | $ | 115.3 | 2.18 | % | $ | 113.1 | 2.00 | % | ||||||||||||||||||||||||
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| Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2021 Earnings Release | Page 13 of 17 |
Stifel Bancorp Net Interest Income
| Three Months Ended | ||||||||||||||||||||||||||||||||||||
| June 30, 2021 | June 30, 2020 | March 31, 2021 | ||||||||||||||||||||||||||||||||||
| ($ in millions, except percentages) | 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 |
$ | 611.9 | $ | 0.2 | 0.14 | % | $ | 961.1 | $ | 0.3 | 0.13 | % | $ | 962.3 | $ | 0.3 | 0.12 | % | ||||||||||||||||||
| Investments |
6,918.9 | 31.5 | 1.82 | % | 6,385.6 | 41.5 | 2.60 | % | 6,276.7 | 30.0 | 1.91 | % | ||||||||||||||||||||||||
| Loans |
12,959.0 | 92.4 | 2.85 | % | 10,909.4 | 79.2 | 2.90 | % | 12,115.7 | 87.2 | 2.88 | % | ||||||||||||||||||||||||
| Other interest-bearing assets |
44.5 | 0.4 | 3.21 | % | 46.7 | 0.3 | 2.46 | % | 40.7 | 0.2 | 2.23 | % | ||||||||||||||||||||||||
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| Total interest-bearing assets/ interest income |
$ | 20,534.3 | $ | 124.5 | 2.42 | % | $ | 18,302.8 | $ | 121.3 | 2.65 | % | $ | 19,395.4 | $ | 117.7 | 2.43 | % | ||||||||||||||||||
| Interest-bearing liabilities: |
||||||||||||||||||||||||||||||||||||
| Deposits |
$ | 18,637.1 | $ | 1.2 | 0.03 | % | $ | 16,676.5 | $ | 2.3 | 0.05 | % | $ | 17,629.6 | $ | 1.3 | 0.03 | % | ||||||||||||||||||
| Federal Home Loan advances |
60.3 | — | 0.27 | % | 250.8 | 0.7 | 1.09 | % | 15.8 | — | 0.29 | % | ||||||||||||||||||||||||
| Other interest-bearing liabilities |
1.3 | 0.1 | 7.44 | % | 1.5 | — | 6.71 | % | 1.4 | — | 7.92 | % | ||||||||||||||||||||||||
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| Total interest-bearing liabilities/ interest expense |
$ | 18,698.7 | 1.3 | 0.03 | % | $ | 16,928.8 | 3.0 | 0.07 | % | $ | 17,646.8 | 1.3 | 0.03 | % | |||||||||||||||||||||
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| Net interest income/margin |
$ | 123.2 | 2.40 | % | $ | 118.3 | 2.59 | % | $ | 116.4 | 2.40 | % | ||||||||||||||||||||||||
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| Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2021 Earnings Release | Page 14 of 17 |
GAAP to Core Reconciliation
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
| (Unaudited, $ in 000s except percentages) | 6/30/2021 | 6/30/2020 | Change | 3/31/2021 | Change | 6/30/2021 | 6/30/2020 | Change | ||||||||||||||||||||||||
| GAAP net revenues |
$ | 1,153,136 | $ | 895,817 | $ | 1,134,789 | $ | 2,287,925 | $ | 1,808,851 | ||||||||||||||||||||||
| Non-GAAP adjustments |
(38 | ) | — | 191 | 153 | 179 | ||||||||||||||||||||||||||
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|||||||||||||||||||||||
| Non-GAAP rnet revenues |
1,153,098 | 895,817 | 1,134,980 | 2,288,078 | 1,809,030 | |||||||||||||||||||||||||||
| GAAP compensation and benefits expense |
692,054 | 547,174 | 697,914 | 1,389,968 | 1,124,353 | |||||||||||||||||||||||||||
| Merger-related (14) |
(6,119 | ) | (9,710 | ) | (6,174 | ) | (12,293 | ) | (16,137 | ) | ||||||||||||||||||||||
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| Non-GAAP compensation and benefits expense |
685,935 | 537,464 | 691,740 | 1,377,675 | 1,108,216 | |||||||||||||||||||||||||||
| GAAP non-compensation operating expenses |
197,057 | 205,683 | 208,983 | 406,040 | 426,432 | |||||||||||||||||||||||||||
| Merger-related (14) |
(10,287 | ) | (6,549 | ) | (9,064 | ) | (19,351 | ) | (13,453 | ) | ||||||||||||||||||||||
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|||||||||||||||||||||||
| Non-GAAP non-compensation operating expenses |
186,770 | 199,134 | 199,919 | 386,689 | 412,979 | |||||||||||||||||||||||||||
| GAAP provision for income taxes |
65,948 | 35,073 | 54,877 | 120,825 | 63,590 | |||||||||||||||||||||||||||
| Merger-related and other (14) |
4,089 | 3,968 | 3,730 | 7,819 | 7,290 | |||||||||||||||||||||||||||
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|
|||||||||||||||||||||||
| Non-GAAP provision for income taxes |
70,037 | 39,041 | 58,607 | 128,644 | 70,880 | |||||||||||||||||||||||||||
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|
|||||||||||||||||||||||
| Total merger-related adjustments |
(16,368 | ) | (16,259 | ) | (15,429 | ) | (31,797 | ) | (29,769 | ) | ||||||||||||||||||||||
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| Financial ratios: |
||||||||||||||||||||||||||||||||
| Compensation and benefits |
59.5 | % | 60.0 | % | (50 | ) | 60.9 | % | (140 | ) | 60.2 | % | 61.3 | % | (110 | ) | ||||||||||||||||
| Non-compensation operating expenses |
16.2 | % | 22.2 | % | (600 | ) | 17.7 | % | (150 | ) | 16.9 | % | 22.8 | % | (590 | ) | ||||||||||||||||
| Income before income taxes |
24.3 | % | 17.8 | % | 650 | 21.4 | % | 290 | 22.9 | % | 15.9 | % | 700 | |||||||||||||||||||
| Effective tax rate |
25.0 | % | 24.5 | % | 50 | 24.1 | % | 90 | 24.6 | % | 24.6 | % | — | |||||||||||||||||||
| Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2021 Earnings Release | Page 15 of 17 |
Footnotes
| (1) | All share and per share information has been retroactively adjusted to reflect the December 2020 three-for-two stock split. |
| (2) | Please refer to the GAAP to Core Reconciliation for a reconciliation of the Company’s GAAP results to these non-GAAP measures. |
| (3) | 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. |
| (4) | Annualized return on average common shareholders’ equity (“ROE”) is calculated by dividing annualized net income applicable to common shareholders by average common shareholders’ equity or, in the case of non-GAAP ROE, calculated by dividing non-GAAP net income applicable to commons shareholders by average common shareholders’ equity. |
| (5) | Annualized return on average tangible common shareholders’ equity (“ROTE”) is calculated by dividing annualized net income applicable to common shareholders by average tangible shareholders’ equity or, in the case of non-GAAP ROTE, calculated by dividing non-GAAP net income applicable to common shareholders by average tangible shareholders’ equity. Tangible common shareholders’ equity 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 $53.1 million, $48.5 million, and $51.7 million, as of June 30, 2021 and 2020, and March 31, 2021, respectively. Historical periods have been restated to conform with the current period presentation. |
| (6) | Regulatory capital amounts and ratios are estimates at the time of the Company’s earnings release on July 28, 2021. |
| (7) | Includes capital raising and advisory fee revenues. |
| (8) | Includes client margin balances held by the Company’s broker-dealer subsidiaries and securities-based loans held at the Company’s bank subsidiaries. |
| (9) | Includes Private Client Group and Trust Business |
| (10) | Includes fund networking fees, retirement fees, transaction/handling fees, and ACAT fees. |
| (11) | Asset management assets managed in Private Client Group or Trust accounts. |
| (12) | Return on assets (ROA) is calculated based on prior period-end balances for Private Client Group, period-end balances for Asset Management, and average quarterly balances for Individual Program Banks. |
| (13) | Includes net interest, asset management and service fees, and other income. |
| (14) | Primarily related to charges attributable to integration-related activities, signing bonuses, amortization of restricted stock awards and promissory notes issued as retention, and amortization of intangible assets acquired. These costs were directly related to acquisitions of certain businesses and are not representative of the costs of running the Company’s on-going business. |
| Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2021 Earnings Release | Page 16 of 17 |
Disclaimer and Legal Notice
Forward-Looking Statements
This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks, assumptions, and uncertainties, including statements relating to the market opportunity and future business prospects of Stifel Financial Corp., as well as Stifel, Nicolaus & Company, Incorporated and its subsidiaries (collectively, “SF” or the “Company”). These statements can be identified by the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” and similar expressions.
All statements not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. For information about the risks and important factors that could affect the Company’s future results, financial condition and liquidity, see “Risk Factors” in Part I of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. 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.
Statements about the effects of the COVID-19 pandemic on the Company’s business, results, financial position and liquidity may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected.
Use of Non-GAAP Financial Measures
The Company utilized certain non-GAAP calculations as additional measures to aid in understanding and analyzing the Company’s financial results for the three and six months ended June 30, 2021. 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 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 current financial performance. The non-GAAP financial information should be considered in addition to, not as a substitute for or as being superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP. These non-GAAP measures primarily exclude expenses which management believes are, in some instances, non-recurring and not representative of ongoing business.
A limitation of utilizing these non-GAAP measures is that the GAAP accounting effects of these charges do, in fact, reflect the underlying financial results of the Company’s business and these effects should not be ignored in evaluating and analyzing its financial results. Therefore, the Company believes that GAAP measures and the same respective non-GAAP measures of the Company’s financial performance should be considered together.
Legal Notice
This Financial Supplement contains financial, statistical, and business-related information, as well as business and segment trends. The information should be read in conjunction with the Company’s second quarter earnings release issued July 28, 2021.
| Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2021 Earnings Release | Page 17 of 17 |