EX-99.2 3 d919742dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

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Third 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 | Third Quarter 2023 Earnings Release    Page 1 of 18

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Consolidated Financial Highlights

 

 

     Three Months Ended     Nine Months Ended  
(Unaudited, 000s, except per share
information)		    9/30/2023      9/30/2022      % Change     6/30/2023      % Change     9/30/2023      9/30/2022      % Change  

Net revenues

    $ 1,045,051      $ 1,045,139        (0.0 %)    $ 1,050,721        (0.5 %)    $ 3,202,565      $ 3,269,792        (2.1 %) 

Net income

    $ 68,161      $ 151,169        (54.9 %)    $ 134,352        (49.3 %)    $ 360,052      $ 485,534        (25.8 %) 

Preferred dividends

      9,321        9,320        0.0 %      9,320        0.0 %      27,961        27,961        0.0 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net income available to common shareholders

    $ 58,840      $ 141,849        (58.5 %)    $ 125,032        (52.9 %)    $ 332,091      $ 457,573        (27.4 %) 

Earnings per diluted common share

    $ 0.60      $ 1.29        (53.5 %)    $ 1.18        (49.2 %)    $ 3.15      $ 4.13        (23.7 %) 

Earnings per diluted common share available to common shareholders

    $ 0.52      $ 1.21        (57.0 %)    $ 1.10        (52.7 %)    $ 2.91      $ 3.89        (25.2 %) 

Non-GAAP financial summary (1):

                      

Net revenues

    $ 1,045,028      $ 1,045,133        (0.0 %)    $ 1,050,721        (0.5 %)    $ 3,202,539      $ 3,269,847        (2.1 %) 

Net income

    $ 76,734      $ 160,076        (52.1 %)    $ 145,576        (47.3 %)    $ 392,898      $ 518,157        (24.2 %) 

Preferred dividends

      9,321        9,320        0.0 %      9,320        0.0 %      27,961        27,961        0.0 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net income available to common shareholders

    $ 67,413        150,756        (55.3 %)      136,256        (50.5 %)      364,937        490,196        (25.6 %) 

Earnings per diluted common share

    $ 0.68      $ 1.37        (50.4 %)    $ 1.28        (46.9 %)    $ 3.44      $ 4.41        (22.0 %) 

Earnings per diluted common share available to common shareholders

    $ 0.60      $ 1.29        (53.5 %)    $ 1.20        (50.0 %)    $ 3.20      $ 4.17        (23.3 %) 

Weighted average number of common shares outstanding:

 

           

Basic

      106,068        108,767        (2.5 %)      107,944        (1.7 %)      107,580        109,017        (1.3 %) 

Diluted

      113,195        117,218        (3.4 %)      113,864        (0.6 %)      114,170        117,649        (3.0 %) 

Period end common shares outstanding

      103,120        106,225        (2.9 %)      104,889        (1.7 %)      103,120        106,225        (2.9 %) 

Cash dividends declared per common share

    $ 0.36      $ 0.30        20.0 %    $ 0.36        0.0 %    $ 1.08      $ 0.90        20.0 % 

 

Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2023 Earnings Release    Page 2 of 18

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GAAP Consolidated Results of Operations

 

 

     Three Months Ended     Nine Months Ended  
(Unaudited, 000s, except per share
information)		    9/30/2023      9/30/2022      % Change     6/30/2023      % Change     9/30/2023     9/30/2022      % Change  

Revenues:

                     

Commissions

    $ 165,075      $ 159,054        3.8 %    $ 165,358        (0.2 %)    $ 499,983     $ 541,644        (7.7 %) 

Principal transactions

      114,841        118,379        (3.0 %)      105,700        8.6 %      336,063       403,252        (16.7 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Transactional revenues

      279,916        277,433        0.9 %      271,058        3.3 %      836,046       944,896        (11.5 %) 

Capital raising

      49,615        55,122        (10.0 %)      78,950        (37.2 %)      189,381       200,091        (5.4 %) 

Advisory

      97,272        166,736        (41.7 %)      87,875        10.7 %      336,210       547,688        (38.6 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Investment banking

      146,887        221,858        (33.8 %)      166,825        (12.0 %)      525,591       747,779        (29.7 %) 

Asset management

      333,127        300,557        10.8 %      320,264        4.0 %      968,960       973,457        (0.5 %) 

Other income

      459        852        (46.1 %)      894        (48.7 %)      (940 )      7,823        (112.0 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Operating revenues

      760,389        800,700        (5.0 %)      759,041        0.2 %      2,329,657       2,673,955        (12.9 %) 

Interest revenue

      505,198        304,195        66.1 %      482,770        4.6 %      1,439,532       682,384        111.0 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total revenues

      1,265,587        1,104,895        14.5 %      1,241,811        1.9 %      3,769,189       3,356,339        12.3 % 

Interest expense

      220,536        59,756        269.1 %      191,090        15.4 %      566,624       86,547        554.7 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Net revenues

      1,045,051        1,045,139        (0.0 %)      1,050,721        (0.5 %)      3,202,565       3,269,792        (2.1 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Non-interest expenses:

                     

Compensation and benefits

      613,287        611,870        0.2 %      615,667        (0.4 %)      1,880,144       1,938,270        (3.0 %) 

Occupancy and equipment rental

      84,396        77,230        9.3 %      84,604        (0.2 %)      251,140       232,507        8.0 % 

Communication and office supplies

      46,215        43,825        5.5 %      44,969        2.8 %      137,320       129,926        5.7 % 

Commissions and floor brokerage

      14,413        13,576        6.2 %      14,112        2.1 %      42,965       44,569        (3.6 %) 

Provision for credit losses

      9,992        6,453        54.8 %      7,824        27.7 %      22,736       27,478        (17.3 %) 

Other operating expenses

      167,319        86,416        93.6 %      102,160        63.8 %      367,563       245,623        49.6 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total non-interest expenses

      935,622        839,370        11.5 %      869,336        7.6 %      2,701,868       2,618,373        3.2 % 

Income before income taxes

      109,429        205,769        (46.8 %)      181,385        (39.7 %)      500,697       651,419        (23.1 %) 

Provision for income taxes

      41,268        54,600        (24.4 %)      47,033        (12.3 %)      140,645       165,885        (15.2 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Net income

      68,161        151,169        (54.9 %)      134,352        (49.3 %)      360,052       485,534        (25.8 %) 

Preferred dividends

      9,321        9,320        0.0 %      9,320        0.0 %      27,961       27,961        0.0 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Net income available to common shareholders

    $ 58,840      $ 141,849        (58.5 %)    $ 125,032        (52.9 %)    $ 332,091     $ 457,573        (27.4 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Earnings per common share:

                     

Basic

    $ 0.55      $ 1.30        (57.7 %)    $ 1.16        (52.6 %)    $ 3.09     $ 4.20        (26.4 %) 

Diluted

    $ 0.52      $ 1.21        (57.0 %)    $ 1.10        (52.7 %)    $ 2.91     $ 3.89        (25.2 %) 

Weighted average number of common shares outstanding:

 

          

Basic

      106,068        108,767        (2.5 %)      107,944        (1.7 %)      107,580       109,017        (1.3 %) 

Diluted

      113,195        117,218        (3.4 %)      113,864        (0.6 %)      114,170       117,649        (3.0 %) 

Cash dividends declared per common share

    $ 0.36      $ 0.30        20.0 %    $ 0.36        0.0 %    $ 1.08     $ 0.90        20.0 % 

 

Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2023 Earnings Release    Page 3 of 18

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Non-GAAP Consolidated Results of Operations (1)

 

 

     Three Months Ended     Nine Months Ended  
(Unaudited, 000s, except per share
information)		    9/30/2023      9/30/2022      % Change     6/30/2023      % Change     9/30/2023     9/30/2022      % Change  

Revenues:

                     

Commissions

    $ 165,075      $ 159,054        3.8 %    $ 165,358        (0.2 %)    $ 499,983     $ 541,644        (7.7 %) 

Principal transactions

      114,841        118,379        (3.0 %)      105,700        8.6 %      336,063       403,252        (16.7 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Transactional revenues

      279,916        277,433        0.9 %      271,058        3.3 %      836,046       944,896        (11.5 %) 

Capital raising

      49,615        55,122        (10.0 %)      78,950        (37.2 %)      189,381       200,091        (5.4 %) 

Advisory

      97,272        166,736        (41.7 %)      87,875        10.7 %      336,210       547,688        (38.6 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Investment banking

      146,887        221,858        (33.8 %)      166,825        (12.0 %)      525,591       747,779        (29.7 %) 

Asset management

      333,127        300,557        10.8 %      320,264        4.0 %      968,960       973,457        (0.5 %) 

Other income

      436        852        (48.8 %)      894        (51.2 %)      (963 )      7,823        (112.3 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Operating revenues

      760,366        800,700        (5.0 %)      759,041        0.2 %      2,329,634       2,673,955        (12.9 %) 

Interest revenue

      505,198        304,195        66.1 %      482,770        4.6 %      1,439,532       682,384        111.0 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total revenues

      1,265,564        1,104,895        14.5 %      1,241,811        1.9 %      3,769,166       3,356,339        12.3 % 

Interest expense

      220,536        59,762        269.0 %      191,090        15.4 %      566,627       86,492        555.1 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Net revenues

      1,045,028        1,045,133        (0.0 %)      1,050,721        (0.5 %)      3,202,539       3,269,847        (2.1 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Non-interest expenses:

                     

Compensation and benefits

      606,116        605,811        0.1 %      609,144        (0.5 %)      1,857,197       1,913,726        (3.0 %) 

Occupancy and equipment rental

      84,342        77,142        9.3 %      84,579        (0.3 %)      250,960       232,035        8.2 % 

Communication and office supplies

      46,215        43,794        5.5 %      44,965        2.8 %      137,314       129,863        5.7 % 

Commissions and floor brokerage

      14,413        13,576        6.2 %      14,112        2.1 %      42,965       44,569        (3.6 %) 

Provision for credit losses

      9,992        6,453        54.8 %      7,824        27.7 %      22,736       27,478        (17.3 %) 

Other operating expenses

      160,750        80,630        99.4 %      93,568        71.8 %      344,369       227,155        51.6 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total non-interest expenses

      921,828        827,406        11.4 %      854,192        7.9 %      2,655,541       2,574,826        3.1 % 

Income before income taxes

      123,200        217,727        (43.4 %)      196,529        (37.3 %)      546,998       695,021        (21.3 %) 

Provision for income taxes

      46,466        57,651        (19.4 %)      50,953        (8.8 %)      154,100       176,864        (12.9 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Net income

      76,734        160,076        (52.1 %)      145,576        (47.3 %)      392,898       518,157        (24.2 %) 

Preferred dividends

      9,321        9,320        0.0 %      9,320        0.0 %      27,961       27,961        0.0 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Net income available to common shareholders

    $ 67,413      $ 150,756        (55.3 %)    $ 136,256        (50.5 %)    $ 364,937     $ 490,196        (25.6 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Earnings per common share:

                     

Basic

    $ 0.64      $ 1.39        (54.0 %)    $ 1.26        (49.2 %)    $ 3.39     $ 4.50        (24.7 %) 

Diluted

    $ 0.60      $ 1.29        (53.5 %)    $ 1.20        (50.0 %)    $ 3.20     $ 4.17        (23.3 %) 

Weighted average number of common shares outstanding:

 

          

Basic

      106,068        108,767        (2.5 %)      107,944        (1.7 %)      107,580       109,017        (1.3 %) 

Diluted

      113,195        117,218        (3.4 %)      113,864        (0.6 %)      114,170       117,649        (3.0 %) 

Cash dividends declared per common share

    $ 0.36      $ 0.30        20.0 %    $ 0.36        0.0 %    $ 1.08     $ 0.90        20.0 % 

 

Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2023 Earnings Release    Page 4 of 18

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Consolidated Financial Summary

 

 

     Three Months Ended     Nine Months Ended  
(Unaudited, 000s)    9/30/2023     9/30/2022     % Change     6/30/2023     % Change     9/30/2023     9/30/2022     % Change  

Net revenues:

                 

Global Wealth Management

    $ 768,558     $ 701,820       9.5 %    $ 758,190       1.4 %    $ 2,283,934     $ 2,081,525       9.7 % 

Institutional Group

      256,888       339,408       (24.3 %)      277,524       (7.4 %)      867,025       1,182,135       (26.7 %) 

Other

      19,605       3,911       401.3 %      15,007       30.6 %      51,606       6,132       741.6 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenues

    $ 1,045,051     $ 1,045,139       (0.0 %)    $ 1,050,721       (0.5 %)    $ 3,202,565     $ 3,269,792       (2.1 %) 

Operating expenses:

                 

Global Wealth Management

    $ 470,109     $ 421,885       11.4 %    $ 458,286       2.6 %    $ 1,369,472     $ 1,331,025       2.9 % 

Institutional Group

      284,692       299,408       (4.9 %)      289,117       (1.5 %)      872,696       972,515       (10.3 %) 

Other

      180,821       118,077       53.1 %      121,933       48.3 %      459,700       314,833       46.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

    $ 935,622     $ 839,370       11.5 %    $ 869,336       7.6 %    $ 2,701,868     $ 2,618,373       3.2 % 

Operating contribution:

                 

Global Wealth Management

    $ 298,449     $ 279,935       6.6 %    $ 299,904       (0.5 %)    $ 914,462     $ 750,500       21.8 % 

Institutional Group

      (27,804 )      40,000       (169.5 %)      (11,593 )      (139.8 %)      (5,671 )      209,620       (102.7 %) 

Other

      (161,216 )      (114,166 )      (41.2 %)      (106,926 )      (50.8 %)      (408,094 )      (308,701 )      (32.2 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 109,429     $ 205,769       (46.8 %)    $ 181,385       (39.7 %)    $ 500,697     $ 651,419       (23.1 %) 

Financial ratios:

                 

Compensation and benefits

      58.7 %      58.5 %      20       58.6 %      10       58.7 %      59.3 %      (60 ) 

Non-compensation operating expenses

      30.8 %      21.8 %      900       24.1 %      670       25.7 %      20.8 %      490  

Income before income taxes

      10.5 %      19.7 %      (920 )      17.3 %      (680 )      15.6 %      19.9 %      (430 ) 

Effective tax rate

      37.7 %      26.5 %      1,120       25.9 %      1,180       28.1 %      25.5 %      260  

 

Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2023 Earnings Release    Page 5 of 18

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Consolidated Financial Information and Metrics

 

 

     As of and for the Three Months Ended  
(Unaudited, 000s, except per share data)    9/30/2023     9/30/2022     % Change     6/30/2023     % Change  

Financial Information:

           

Total assets

    $ 37,877,577     $ 37,612,063       0.7 %    $ 37,298,239       1.6 % 

Total shareholders’ equity

    $ 5,242,594     $ 5,227,350       0.3 %    $ 5,342,987       (1.9 %) 

Total common equity

    $ 4,557,594     $ 4,542,350       0.3 %    $ 4,657,987       (2.2 %) 

Goodwill and intangible assets

    $ (1,526,572 )    $ (1,454,532 )      5.0 %    $ (1,509,431 )      1.1 % 

DTL on goodwill and intangible assets

    $ 69,187     $ 60,034       15.2 %    $ 65,651       5.4 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Tangible common equity

    $ 3,100,209     $ 3,147,852       (1.5 %)    $ 3,214,207       (3.5 %) 

Preferred equity

    $ 685,000     $ 685,000       0.0 %    $ 685,000       0.0 % 

Financial Metrics:

           

Book value per common share (2)

    $ 44.20     $ 42.76       3.4 %    $ 44.41       (0.5 %) 

Tangible book value per common share (2)

    $ 30.06     $ 29.63       1.5 %    $ 30.64       (1.9 %) 

Return on common equity (3)

      5.1 %      12.5 %        10.7 %   

Non-GAAP return on common equity (1)(3)

      5.8 %      13.3 %        11.6 %   

Return on tangible common equity (4)

      7.4 %      18.0 %        15.5 %   

Non-GAAP return on tangible common equity (1)(4)

      8.5 %      19.2 %        16.8 %   

Pre-tax margin on net revenues

      10.5 %      19.7 %        17.3 %   

Non-GAAP pre-tax margin on net revenues (1)

      11.8 %      20.8 %        18.7 %   

Effective tax rate

      37.7 %      26.5 %        25.9 %   

Non-GAAP effective tax rate (1)

      37.7 %      26.5 %        25.9 %   

 

Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2023 Earnings Release    Page 6 of 18

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Regulatory Capital

 

 

(Unaudited, 000s)    9/30/2023     9/30/2022     % Change     6/30/2023     % Change  

SF Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 3,228,952     $ 3,279,013       (1.5 %)    $ 3,314,189       (2.6 %) 

Tier 1 capital

    $ 3,913,952     $ 3,964,013       (1.3 %)    $ 3,999,189       (2.1 %) 

Risk-weighted assets

    $ 23,218,858     $ 23,300,119       (0.3 %)    $ 23,164,596       0.2 % 

Common equity tier 1 capital ratio

      13.9 %      14.1 %        14.3 %   

Tier 1 risk based capital ratio

      16.9 %      17.0 %        17.3 %   

Tier 1 leverage capital ratio

      10.8 %      11.1 %        11.1 %   

Stifel Bank & Trust Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 1,489,819     $ 1,655,760       (10.0 %)    $ 1,513,202       (1.5 %) 

Tier 1 capital

    $ 1,489,819     $ 1,655,760       (10.0 %)    $ 1,513,202       (1.5 %) 

Risk-weighted assets

    $ 13,785,150     $ 15,406,324       (10.5 %)    $ 13,967,683       (1.3 %) 

Common equity tier 1 capital ratio

      10.8 %      10.8 %        10.8 %   

Tier 1 risk based capital ratio

      10.8 %      10.8 %        10.8 %   

Tier 1 leverage capital ratio

      7.7 %      7.3 %        7.5 %   

Stifel Bank Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 690,455     $ 377,572       82.9 %    $ 639,967       7.9 % 

Tier 1 capital

    $ 690,455     $ 377,572       82.9 %    $ 639,967       7.9 % 

Risk-weighted assets

    $ 4,724,176     $ 3,591,228       31.5 %    $ 5,145,958       (8.2 %) 

Common equity tier 1 capital ratio

      14.6 %      10.5 %        12.4 %   

Tier 1 risk based capital ratio

      14.6 %      10.5 %        12.4 %   

Tier 1 leverage capital ratio

      7.1 %      7.3 %        7.1 %   

Stifel Net Capital (5):

           

Net capital

    $ 395,400     $ 642,700       (38.5 %)    $ 456,500       (13.4 %) 

Excess net capital

    $ 373,800     $ 614,300       (39.2 %)    $ 433,900       (13.9 %) 

 

Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2023 Earnings Release    Page 7 of 18

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Global Wealth Management - Summary Results of Operations  

 

 

     Three Months Ended     Nine Months Ended  
(Unaudited, 000s)    9/30/2023     9/30/2022     % Change     6/30/2023     % Change     9/30/2023     9/30/2022     % Change  

Revenues:

                 

Commissions

    $ 112,300     $ 108,214       3.8 %    $ 109,836       2.2 %    $ 332,327     $ 360,994       (7.9 %) 

Principal transactions

      53,247       48,351       10.1 %      48,122       10.7 %      152,433       142,361       7.1 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactional revenues

      165,547       156,565       5.7 %      157,958       4.8 %      484,760       503,355       (3.7 %) 

Asset management

      333,088       300,540       10.8 %      320,238       4.0 %      968,863       973,396       (0.5 %) 

Net interest

      269,431       242,194       11.2 %      277,345       (2.9 %)      828,708       594,782       39.3 % 

Investment banking (6)

      3,895       4,498       (13.4 %)      4,065       (4.2 %)      12,118       14,701       (17.6 %) 

Other income

      (3,403 )      (1,977 )      (72.1 %)      (1,416 )      (140.3 %)      (10,515 )      (4,709 )      (123.3 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

      768,558       701,820       9.5 %      758,190       1.4 %      2,283,934       2,081,525       9.7 % 

Non-interest expenses:

                 

Compensation and benefits

      359,325       326,116       10.2 %      354,086       1.5 %      1,055,834       1,040,477       1.5 % 

Non-compensation operating expenses

      110,784       95,769       15.7 %      104,200       6.3 %      313,638       290,548       7.9 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-interest expenses

      470,109       421,885       11.4 %      458,286       2.6 %      1,369,472       1,331,025       2.9 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 298,449     $ 279,935       6.6 %    $ 299,904       (0.5 %)    $ 914,462     $ 750,500       21.8 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

As a percentage of net revenues:

                 

Compensation and benefits

      46.8 %      46.5 %      30       46.7 %      10       46.2 %      50.0 %      (380 ) 

Non-compensation operating expenses

      14.4 %      13.6 %      80       13.7 %      70       13.8 %      13.9 %      (10 ) 

Income before income taxes

      38.8 %      39.9 %      (110 )      39.6 %      (80 )      40.0 %      36.1 %      390  

 

Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2023 Earnings Release    Page 8 of 18

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Global Wealth Management - Statistical Information

 

 

     As of and for the Three Months Ended  
(Unaudited, 000s, except financial advisors)    9/30/2023     9/30/2022     % Change     6/30/2023     % Change  

Financial advisors (including independent contractors) (7)

      2,374       2,337       1.6 %      2,369       0.2 % 

Total client assets

    $ 412,458,000     $ 364,824,000       13.1 %    $ 417,669,000       (1.2 %) 

Fee-based client assets

    $ 150,982,000     $ 135,521,000       11.4 %    $ 154,538,000       (2.3 %) 

Transactional assets

    $ 261,476,000     $ 229,303,000       14.0 %    $ 263,131,000       (0.6 %) 

Secured client lending (8)

    $ 3,083,000     $ 3,841,000       (19.7 %)    $ 3,163,000       (2.5 %) 

Asset Management Revenue (000s):

           

Private Client Group (9)

    $ 279,807     $ 252,487       10.8 %    $ 266,510       5.0 % 

Asset Management

      33,211       30,648       8.4 %      33,154       0.2 % 

Third-party Bank Sweep Program

      7,023       3,851       82.4 %      7,452       (5.8 %) 

Other (10)

      13,086       13,571       (3.6 %)      13,148       (0.5 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total asset management revenues

    $ 333,127     $ 300,557       10.8 %    $ 320,264       4.0 % 

Fee-based Assets (millions):

           

Private Client Group (9)

    $ 132,712     $ 118,850       11.7 %    $ 135,606       (2.1 %) 

Asset Management

      33,519       30,095       11.4 %      34,766       (3.6 %) 

Elimination (11)

      (15,249 )      (13,424 )      13.6 %      (15,834 )      (3.7 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fee-based assets

    $ 150,982     $ 135,521       11.4 %    $ 154,538       (2.3 %) 

Third-party Bank Sweep Program

    $ 578     $ 1,114       (48.1 %)    $ 657       (12.0 %) 

ROA (bps) (12):

           

Private Client Group (9)

      82.5       81.6         81.1    

Asset Management

      39.6       40.7         38.1    

Third-party Bank Sweep Program

      429.7       104.3         362.3    

Stifel Bancorp Deposits (millions):

           

Sweep Deposits

    $ 11,142     $ 19,992       (44.3 %)    $ 12,293       (9.4 %) 

Smart Rate Deposits

      13,605       4,739       187.1 %      11,858       14.7 % 

Direct Wealth Management Deposits at Stifel Bancorp

      397       25       nm       319       24.5 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Stifel Bancorp Wealth Management Deposits

      25,144       24,756       1.6 %      24,470       2.8 % 

Other Bank Deposits

      2,450       2,435       0.6 %      2,535       (3.4 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Stifel Bancorp Deposits

    $ 27,594     $ 27,191       1.5 %    $ 27,005       2.2 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Short-term Treasuries (millions) (13)

    $ 7,586     $ 3,019       151.3 %    $ 7,104       6.8 % 

Wealth Management Cash (millions):

           

Stifel Bancorp Wealth Management Deposits

    $ 25,144     $ 24,756       1.6 %    $ 24,470       2.8 % 

Third-party Bank Sweep Program

      578       1,114       (48.1 %)      657       (12.0 %) 

Other Sweep Cash

      173       236       (26.7 %)      284       (39.1 %) 

Money Market Mutual Funds

      8,760       6,240       40.4 %      8,034       9.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Wealth Management Cash

    $ 34,655     $ 32,346       7.1 %    $ 33,445       3.6 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2023 Earnings Release    Page 9 of 18

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Institutional Group - Summary Results of Operations

 

 

     Three Months Ended     Nine Months Ended  
(Unaudited, 000s)    9/30/2023     9/30/2022     % Change     6/30/2023     % Change     9/30/2023     9/30/2022     % Change  

Revenues:

                 

Commissions

    $ 52,775     $ 50,840       3.8 %    $ 55,522       (4.9 %)    $ 167,656     $ 180,650       (7.2 %) 

Principal transactions

      61,594       70,027       (12.0 %)      57,578       7.0 %      183,630       260,890       (29.6 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactional revenues

      114,369       120,867       (5.4 %)      113,100       1.1 %      351,286       441,540       (20.4 %) 

Capital raising

      45,719       50,625       (9.7 %)      74,886       (38.9 %)      177,263       185,391       (4.4 %) 

Advisory

      97,272       166,736       (41.7 %)      87,875       10.7 %      336,210       547,688       (38.6 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment banking

      142,991       217,361       (34.2 %)      162,761       (12.1 %)      513,473       733,079       (30.0 %) 

Other income (14)

      (472 )      1,180       (140.0 %)      1,663       (128.4 %)      2,266       7,516       (69.9 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

      256,888       339,408       (24.3 %)      277,524       (7.4 %)      867,025       1,182,135       (26.7 %) 

Non-interest expenses:

                 

Compensation and benefits

      192,638       211,818       (9.1 %)      194,158       (0.8 %)      592,701       708,876       (16.4 %) 

Non-compensation operating expenses

      92,054       87,590       5.1 %      94,959       (3.1 %)      279,995       263,639       6.2 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-interest expenses

      284,692       299,408       (4.9 %)      289,117       (1.5 %)      872,696       972,515       (10.3 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income/(loss) before income taxes

    $ (27,804 )    $ 40,000       (169.5 %)    $ (11,593 )      (139.8 %)    $ (5,671 )    $ 209,620       (102.7 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

As a percentage of net revenues:

                 

Compensation and benefits

      75.0 %      62.4 %      1,260       70.0 %      500       68.4 %      60.0 %      840  

Non-compensation operating expenses

      35.8 %      25.8 %      1,000       34.2 %      160       32.3 %      22.3 %      1,000  

Income before income taxes

      (10.8 %)      11.8 %      (2,260 )      (4.2 %)      (660 )      (0.7 %)      17.7 %      (1,840 ) 

 

Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2023 Earnings Release    Page 10 of 18

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Stifel Bancorp - Financial Information and Credit Metrics

 

 

(Unaudited, 000s)    9/30/2023     9/30/2022     % Change     6/30/2023     % Change  

Stifel Bancorp Financial Information:

           

Total assets

    $ 29,872,977     $ 29,307,718       1.9 %    $ 29,260,431       2.1 % 

Total shareholder’s equity

    $ 2,162,000     $ 1,995,933       8.3 %    $ 2,148,221       0.6 % 

Total loans, net (includes loans held for sale)

    $ 20,435,170     $ 20,910,895       (2.3 %)    $ 20,562,492       (0.6 %) 

Residential real estate

      7,957,027       7,048,762       12.9 %      7,708,506       3.2 % 

Commercial and industrial

      4,367,671       5,040,682       (13.4 %)      4,471,031       (2.3 %) 

Fund banking

      4,114,889       4,353,875       (5.5 %)      4,349,541       (5.4 %) 

Securities-based loans

      2,317,631       2,785,679       (16.8 %)      2,399,328       (3.4 %) 

Commercial real estate

      670,907       872,010       (23.1 %)      677,521       (1.0 %) 

Construction and land

      851,709       564,581       50.9 %      772,571       10.2 % 

Other

      172,555       153,661       12.3 %      154,469       11.7 % 

Loans held for sale

      142,617       234,927       (39.3 %)      224,017       (36.3 %) 

Investment securities

    $ 7,411,040     $ 7,650,130       (3.1 %)    $ 7,532,175       (1.6 %) 

Available-for-sale securities, at fair value

      1,512,233       1,660,847       (8.9 %)      1,582,418       (4.4 %) 

Held-to-maturity securities, at amortized cost

      5,898,807       5,989,283       (1.5 %)      5,949,757       (0.9 %) 

Unrealized losses on available-for-sale securities

      (250,506 )      (247,188 )      1.3 %      (215,038 )      16.5 % 

Total deposits

    $ 27,594,358     $ 27,190,619       1.5 %    $ 27,004,807       2.2 % 

Demand deposits (interest-bearing)

      27,335,890       26,783,010       2.1 %      26,744,730       2.2 % 

Demand deposits (non-interest-bearing)

      258,466       397,573       (35.0 %)      260,075       (0.6 %) 

Certificates of deposit

      2       10,036       nm       2       0.0 % 

Credit Metrics:

           

Allowance for credit losses

    $ 169,822     $ 141,998       19.6 %    $ 160,132       6.1 % 

Allowance as a percentage of retained loans

      0.83 %      0.68 %        0.78 %   

Net charge-offs as a percentage of average loans

      0.00 %      0.02 %        0.00 %   

Total nonperforming assets

    $ 50,719     $ 11,291       349.2 %    $ 11,420       344.1 % 

Nonperforming assets as a percentage of total assets

      0.17 %      0.04 %        0.04 %   

 

Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2023 Earnings Release    Page 11 of 18

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Stifel Bancorp - Loan and Investment Portfolio

 

 

(Unaudited, millions)    9/30/2023      % of Total
Portfolio		                    

Loan Portfolio

         Commercial Portfolio by Major Sector      

Residential real estate

    $ 7,957        30 %   

Industrials

    $ 1,012        4 % 

Securities-based loans

      2,318        9 %   

Financials

      908        3 % 

Home equity lines of credit and other

      172        1 %   

Information technology

      604        2 % 
  

 

 

     

 

 

          

Total consumer

      10,447        39 %   

Consumer discretionary

      567        2 % 
  

 

 

     

 

 

          

Commercial and industrial

      4,368        17 %   

Healthcare

      298        1 % 

Fund banking

      4,115        16 %   

REITs

      275        1 % 

Construction and land

      852        3 %   

Materials

      224        1 % 

Commercial real estate

      671        3 %   

Hotel, leisure, restaurants

      173        1 % 
  

 

 

     

 

 

          

Total commercial

      10,006        38 %   

Communication services

      158        1 % 
  

 

 

     

 

 

          

Total loan portfolio

      20,453        77 %   

Consumer staples

      110        0 % 
  

 

 

     

 

 

          

Unfunded commitments

      6,012        23 %         
  

 

 

     

 

 

          

Total

    $ 26,465             
  

 

 

             
        CLO by Major Sector      
       

High tech industries

    $ 601        10 % 

Investment Portfolio

        

Healthcare & pharmaceuticals

      598        10 % 

CLO

    $ 5,868        77 %   

Services: business

      524        9 % 

Agency MBS

      878        11 %   

Banking, finance, insurance, & real estate

      509        9 % 

Corporate bonds

      618        8 %   

Construction & building

      255        4 % 

SBA

      132        2 %   

Services: consumer

      249        4 % 

Student loan ARS

      92        1 %   

Media: broadcasting & subscription

      249        4 % 

CMBS

      70        1 %   

Chemicals, plastics, & rubber

      247        4 % 

Other

      3        0 %   

Hotel, gaming, & leisure

      236        4 % 
  

 

 

     

 

 

          

Total Portfolio

    $ 7,661        100 %   

Telecommunications

      233        4 % 
  

 

 

     

 

 

          

 

Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2023 Earnings Release    Page 12 of 18

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Loans and Lending Commitments - Allowance for Credit Losses

 

 

     September 30, 2023               
(Unaudited, 000s)    Loans and Lending
Commitments		      ACL      ACL %     Q3 Provision  

Residential real estate

    $ 7,957,027      $ 14,607        0.2 %    $ 194  

Commercial and industrial

      4,367,671        74,659        1.7 %      8,584  

Fund banking

      4,114,889        11,518        0.3 %      (660 ) 

Securities-based loans

      2,317,631        3,018        0.1 %      (68 ) 

Commercial real estate

      670,907        19,866        3.0 %      6,437  

Construction and land

      851,709        11,500        1.4 %      (1,145 ) 

Other

      172,555        629        0.4 %      76  
  

 

 

     

 

 

       

 

 

  

Loans held for investment, gross

      20,452,389        135,797        0.7 %      13,418  

Loans held for sale

      142,617          
  

 

 

          

Total loans, gross

      20,595,006          

Lending commitments

      6,012,000        34,025        0.6 %      (3,426 ) 
  

 

 

     

 

 

       

 

 

  

Loans and lending commitments

    $ 26,607,006      $ 169,822        $ 9,992  
  

 

 

     

 

 

       

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2023 Earnings Release    Page 13 of 18

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Consolidated Net Interest Income

 

 

    Three Months Ended  
    September 30, 2023     September 30, 2022     June 30, 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

   $ 2,595.1     $ 35.6       5.48 %    $ 1,302.9     $ 7.7       2.38 %    $ 2,015.4     $ 25.0       4.96 % 

Financial instruments owned

     875.6       4.4       2.01 %      982.7       3.6       1.45 %      864.7       4.6       2.14 % 

Margin balances

     768.2       15.6       8.15 %      1,062.3       12.5       4.71 %      795.6       15.4       7.72 % 

Investments:

                  

Asset-backed securities

     6,130.3       111.0       7.25 %      6,178.0       61.0       3.95 %      6,162.8       106.5       6.91 % 

Mortgage-backed securities

     957.3       5.3       2.22 %      1,032.7       5.3       2.08 %      974.9       5.4       2.20 % 

Corporate fixed income securities

     619.5       4.3       2.77 %      722.7       5.1       2.81 %      622.5       4.3       2.77 % 

Other

     4.8       0.1       2.55 %      4.6       —        1.77 %      4.7       —        2.55 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total investments

     7,711.9       120.7       6.26 %      7,938.0       71.4       3.60 %      7,764.9       116.2       5.99 % 

Loans:

                  

Residential real estate

     7,839.4       61.7       3.15 %      6,824.3       44.8       2.63 %      7,605.8       57.2       3.01 % 

Commercial and industrial

     4,372.4       96.8       8.86 %      4,947.8       65.2       5.27 %      4,715.2       96.7       8.21 % 

Fund banking

     4,155.7       83.0       7.99 %      4,090.2       47.6       4.66 %      4,403.6       82.9       7.53 % 

Securities-based loans

     2,342.4       42.7       7.30 %      2,901.9       31.7       4.36 %      2,469.1       43.0       6.96 % 

Commercial real estate

     668.0       13.4       8.00 %      733.4       8.6       4.68 %      688.3       13.1       7.59 % 

Construction and land

     820.5       17.3       8.44 %      493.3       6.4       5.21 %      702.3       14.2       8.07 % 

Loans held for sale

     202.2       2.6       5.06 %      231.2       2.1       3.57 %      178.9       3.0       6.72 % 

Other

     162.2       3.2       7.86 %      154.0       2.0       5.06 %      161.6       2.9       7.65 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total loans

     20,562.8       320.7       6.24 %      20,376.1       208.4       4.09 %      20,924.8       313.0       5.98 % 

Other interest-bearing assets

     730.9       8.2       4.49 %      889.5       0.6       0.27 %      718.2       8.6       4.76 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing assets/ interest income

     33,244.5       505.2       6.08 %      32,551.5       304.2       3.74 %      33,083.6       482.8       5.84 % 

Interest-bearing liabilities:

                  

Senior notes

     1,115.2       12.5       4.49 %      1,114.1       11.2       4.03 %      1,114.9       12.5       4.49 % 

Deposits

     27,247.4       198.2       2.91 %      25,998.2       43.4       0.67 %      27,223.3       171.4       2.52 % 

Other interest-bearing liabilities

     1,218.9       9.8       3.23 %      1,958.6       5.2       1.05 %      1,181.3       7.2       2.45 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing liabilities/ interest expense

   $ 29,581.5       220.5       2.98 %    $ 29,070.9       59.8       0.82 %    $ 29,519.5       191.1       2.59 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

Net interest income/margin

     $ 284.7       3.43 %      $ 244.4       3.00 %      $ 291.7       3.53 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2023 Earnings Release    Page 14 of 18

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Stifel Bancorp Net Interest Income

 

 

     Three Months Ended  
     September 30, 2023     September 30, 2022     June 30, 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

    $ 1,536.8      $ 21.9        5.70 %    $ 520.5      $ 3.2        2.45 %    $ 1,128.4      $ 15.0        5.31 % 

Investments

      7,711.9        120.7        6.26 %      7,938.0        71.4        3.60 %      7,764.9        116.2        5.99 % 

Loans

      20,562.8        320.7        6.24 %      20,376.1        208.4        4.09 %      20,924.8        313.0        5.98 % 

Other interest-bearing assets

      64.9        0.7        4.08 %      75.8        0.8        4.37 %      62.9        0.7        4.13 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total interest-bearing assets/ interest income

    $ 29,876.4      $ 464.0        6.21 %    $ 28,910.4      $ 283.8        3.93 %    $ 29,881.0      $ 444.9        5.96 % 

Interest-bearing liabilities:

                         

Deposits

    $ 27,247.4      $ 198.2        2.91 %    $ 25,998.2      $ 43.4        0.67 %    $ 27,223.3      $ 171.4        2.52 % 

Other interest-bearing liabilities

      0.9        0.2        80.57 %      543.2        3.3        2.43 %      0.8        0.1        50.62 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total interest-bearing liabilities/ interest expense

    $ 27,248.3        198.4        2.91 %    $ 26,541.4        46.7        0.70 %    $ 27,224.1        171.5        2.52 % 
     

 

 

     

 

 

       

 

 

     

 

 

       

 

 

     

 

 

  

Net interest income/margin

       $ 265.6        3.56 %       $ 237.1        3.28 %       $ 273.4        3.66 % 
     

 

 

     

 

 

       

 

 

     

 

 

       

 

 

     

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2023 Earnings Release    Page 15 of 18

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GAAP to Core Reconciliation

 

 

     Three Months Ended     Nine Months Ended  
(Unaudited, 000s)    9/30/2023     9/30/2022     Change     6/30/2023     Change     9/30/2023     9/30/2022     Change  

GAAP net revenues

    $ 1,045,051     $ 1,045,139       $ 1,050,721       $ 3,202,565     $ 3,269,792    

Non-GAAP adjustments

      (23 )      (6 )        —          (26 )      55    
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP net revenues

      1,045,028       1,045,133         1,050,721         3,202,539       3,269,847    

GAAP compensation and benefits expense

      613,287       611,870         615,667         1,880,144       1,938,270    

Merger-related (15)

      (7,171 )      (6,059 )        (6,523 )        (22,947 )      (24,544 )   
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP compensation and benefits expense

      606,116       605,811         609,144         1,857,197       1,913,726    

GAAP non-compensation operating expenses

      322,335       227,500         253,669         821,724       680,103    

Merger-related (15)

      (6,623 )      (5,905 )        (8,621 )        (23,380 )      (19,003 )   
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP non-compensation operating expenses

      315,712       221,595         245,048         798,344       661,100    
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Total merger-related adjustments

      (13,771 )      (11,958 )        (15,144 )        (46,301 )      (43,602 )   
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

GAAP provision for income taxes

      41,268       54,600         47,033         140,645       165,885    

Merger-related and other (15)

      5,198       3,051         3,920         13,455       10,979    
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP provision for income taxes

      46,466       57,651         50,953         154,100       176,864    

Financial ratios:

                 

Compensation and benefits

      58.0 %      58.0 %      —        58.0 %      —        58.0 %      58.5 %      (50 ) 

Non-compensation operating expenses

      30.2 %      21.2 %      900       23.3 %      690       24.9 %      20.2 %      470  

Income before income taxes

      11.8 %      20.8 %      (900 )      18.7 %      (690 )      17.1 %      21.3 %      (420 ) 

Effective tax rate

      37.7 %      26.5 %      1,120       25.9 %      1,180       28.2 %      25.4 %      280  

 

Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2023 Earnings Release    Page 16 of 18

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Footnotes

 

 

(1)

Please refer to the GAAP to Core Reconciliation for a reconciliation of the Company’s GAAP results to these non-GAAP measures.

(2)

Book value per common share represents shareholders’ equity (excluding preferred stock) divided by period end common shares outstanding. Tangible book value per share represents tangible common shareholders’ equity (defined below) divided by period end common shares outstanding.

(3)

Return on average common equity (“ROCE”) is calculated by dividing annualized net income applicable to common shareholders by average common shareholders’ equity or, in the case of non-GAAP ROCE, calculated by dividing non-GAAP net income applicable to commons shareholders by average common shareholders’ equity.

(4)

Return on average tangible common equity (“ROTCE”) is calculated by dividing annualized net income applicable to common shareholders by average tangible common equity or, in the case of non-GAAP ROTCE, calculated by dividing non-GAAP net income applicable to common shareholders by average tangible common equity. Tangible common equity, also a non-GAAP financial measure, equals total common shareholders’ equity less goodwill and identifiable intangible assets and the deferred taxes on goodwill and intangible assets. Average deferred taxes on goodwill and intangible assets was $67.4 million, $59.2 million, and $64.6 million, as of September 30, 2023 and 2022, and June 30, 2023, respectively.

(5)

Regulatory capital amounts and ratios are estimates as of the date of the Company’s earnings release, October 25, 2023.

(6)

Includes capital raising and advisory revenues.

(7)

Includes independent contractors of 108, 102, and 109 as of September 30, 2023 and 2022, and June 30, 2023, respectively.

(8)

Includes client margin balances held by the Company’s broker-dealer subsidiaries and securities-based loans held at the Company’s bank subsidiaries.

(9)

Includes Private Client Group and Trust Business.

(10)

Includes fund networking fees, retirement fees, transaction/handling fees, and ACAT fees.

(11)

Asset management assets managed in Private Client Group or Trust accounts.

(12)

Return on assets (ROA) is calculated based on prior period-end balances for Private Client Group, period-end balances for Asset Management, and average 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 Company’s on-going business.

 

Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2023 Earnings Release    Page 17 of 18

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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, 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 Company’s financial condition or operating results. These measures are not in accordance with, or a substitute for U.S. GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever the Company refers to a non-GAAP financial measure, it will also define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the non-GAAP financial measure it references and such comparable U.S. GAAP financial measure.

Legal Notice

This Financial Supplement contains financial, statistical, and business-related information, as well as business and segment trends. The information should be read in conjunction with the Company’s third quarter earnings release issued October 25, 2023.

 

Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2023 Earnings Release    Page 18 of 18