EX-99.2 3 d720720dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

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Fourth Quarter and Full Year 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  |  Fourth Quarter and Full Year 2023 Earnings Release    Page 1 of 18

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Consolidated Financial Highlights

 

 

     Three Months Ended     Year Ended  
(Unaudited, 000s, except per share
information)		    12/31/2023      12/31/2022      % Change     9/30/2023      % Change     12/31/2023      12/31/2022      % Change  

Net revenues

    $ 1,146,379      $ 1,121,647        2.2 %    $ 1,045,051        9.7 %    $ 4,348,944      $ 4,391,439        (1.0 %) 

Net income

    $ 162,484      $ 176,621        (8.0 %)    $ 68,161        138.4 %    $ 522,536      $ 662,155        (21.1 %) 

Preferred dividends

      9,320        9,320        0.0 %      9,321        (0.0 %)      37,281        37,281        0.0 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net income available to common shareholders

    $ 153,164      $ 167,301        (8.5 %)    $ 58,840        160.3 %    $ 485,255      $ 624,874        (22.3 %) 

Earnings per diluted common share

    $ 1.46      $ 1.51        (3.3 %)    $ 0.60        143.3 %    $ 4.61      $ 5.63        (18.1 %) 

Earnings per diluted common share available to common shareholders

    $ 1.38      $ 1.43        (3.5 %)    $ 0.52        165.4 %    $ 4.28      $ 5.32        (19.5 %) 

Non-GAAP financial summary (1):

                      

Net revenues

    $ 1,146,419      $ 1,121,643        2.2 %    $ 1,045,028        9.7 %    $ 4,348,958      $ 4,391,490        (1.0 %) 

Net income

    $ 175,907      $ 194,195        (9.4 %)    $ 76,734        129.2 %    $ 568,805      $ 712,352        (20.2 %) 

Preferred dividends

      9,320        9,320        0.0 %      9,321        (0.0 %)      37,281        37,281        0.0 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net income available to common shareholders

    $ 166,587        184,875        (9.9 %)      67,413        147.1 %      531,524        675,071        (21.3 %) 

Earnings per diluted common share

    $ 1.58      $ 1.66        (4.8 %)    $ 0.68        132.4 %    $ 5.01      $ 6.06        (17.3 %) 

Earnings per diluted common share available to common shareholders

    $ 1.50      $ 1.58        (5.1 %)    $ 0.60        150.0 %    $ 4.68      $ 5.74        (18.5 %) 

Weighted average number of common shares outstanding:

 

           

Basic

      103,934        108,344        (4.1 %)      106,068        (2.0 %)      106,661        108,848        (2.0 %) 

Diluted

      111,330        117,223        (5.0 %)      113,195        (1.6 %)      113,453        117,540        (3.5 %) 

Period end common shares outstanding

      101,062        105,348        (4.1 %)      103,120        (2.0 %)      101,062        105,348        (4.1 %) 

Cash dividends declared per common share

    $ 0.36      $ 0.30        20.0 %    $ 0.36        0.0 %    $ 1.44      $ 1.20        20.0 % 

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Fourth Quarter and Full Year 2023 Earnings Release    Page 2 of 18

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GAAP Consolidated Results of Operations

 

 

     Three Months Ended     Year Ended  
(Unaudited, 000s, except per share
information)		    12/31/2023      12/31/2022      % Change     9/30/2023      % Change     12/31/2023      12/31/2022      % Change  

Revenues:

                      

Commissions

    $ 173,614      $ 168,945        2.8 %    $ 165,075        5.2 %    $ 673,597      $ 710,589        (5.2 %) 

Principal transactions

      154,377        125,781        22.7 %      114,841        34.4 %      490,440        529,033        (7.3 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Transactional revenues

      327,991        294,726        11.3 %      279,916        17.2 %      1,164,037        1,239,622        (6.1 %) 

Capital raising

      76,286        56,771        34.4 %      49,615        53.8 %      265,667        256,862        3.4 % 

Advisory

      129,378        166,935        (22.5 %)      97,272        33.0 %      465,588        714,623        (34.8 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Investment banking

      205,664        223,706        (8.1 %)      146,887        40.0 %      731,255        971,485        (24.7 %) 

Asset management

      330,536        289,462        14.2 %      333,127        (0.8 %)      1,299,496        1,262,919        2.9 % 

Other income

      9,687        11,862        (18.3 %)      459        nm       8,747        19,685        (55.6 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Operating revenues

      873,878        819,756        6.6 %      760,389        14.9 %      3,203,535        3,493,711        (8.3 %) 

Interest revenue

      516,213        416,731        23.9 %      505,198        2.2 %      1,955,745        1,099,115        77.9 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total revenues

      1,390,091        1,236,487        12.4 %      1,265,587        9.8 %      5,159,280        4,592,826        12.3 % 

Interest expense

      243,712        114,840        112.2 %      220,536        10.5 %      810,336        201,387        302.4 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net revenues

      1,146,379        1,121,647        2.2 %      1,045,051        9.7 %      4,348,944        4,391,439        (1.0 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Non-interest expenses:

                      

Compensation and benefits

      674,437        647,962        4.1 %      613,287        10.0 %      2,554,581        2,586,232        (1.2 %) 

Occupancy and equipment rental

      88,182        80,740        9.2 %      84,396        4.5 %      339,322        313,247        8.3 % 

Communication and office supplies

      47,332        45,209        4.7 %      46,215        2.4 %      184,652        175,135        5.4 % 

Commissions and floor brokerage

      15,379        13,183        16.7 %      14,413        6.7 %      58,344        57,752        1.0 % 

Provision for credit losses

      2,263        6,028        (62.5 %)      9,992        (77.4 %)      24,999        33,506        (25.4 %) 

Other operating expenses

      112,791        94,828        18.9 %      167,319        (32.6 %)      480,354        340,451        41.1 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total non-interest expenses

      940,384        887,950        5.9 %      935,622        0.5 %      3,642,252        3,506,323        3.9 % 

Income before income taxes

      205,995        233,697        (11.9 %)      109,429        88.2 %      706,692        885,116        (20.2 %) 

Provision for income taxes

      43,511        57,076        (23.8 %)      41,268        5.4 %      184,156        222,961        (17.4 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net income

      162,484        176,621        (8.0 %)      68,161        138.4 %      522,536        662,155        (21.1 %) 

Preferred dividends

      9,320        9,320        0.0 %      9,321        (0.0 %)      37,281        37,281        0.0 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net income available to common shareholders

    $ 153,164      $ 167,301        (8.5 %)    $ 58,840        160.3 %    $ 485,255      $ 624,874        (22.3 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Earnings per common share:

                      

Basic

    $ 1.47      $ 1.54        (4.5 %)    $ 0.55        167.3 %    $ 4.55      $ 5.74        (20.7 %) 

Diluted

    $ 1.38      $ 1.43        (3.5 %)    $ 0.52        165.4 %    $ 4.28      $ 5.32        (19.5 %) 

Weighted average number of common shares outstanding:

 

           

Basic

      103,934        108,344        (4.1 %)      106,068        (2.0 %)      106,661        108,848        (2.0 %) 

Diluted

      111,330        117,223        (5.0 %)      113,195        (1.6 %)      113,453        117,540        (3.5 %) 

Cash dividends declared per common share

    $ 0.36      $ 0.30        20.0 %    $ 0.36        0.0 %    $ 1.44      $ 1.20        20.0 % 

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Fourth Quarter and Full Year 2023 Earnings Release    Page 3 of 18

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Non-GAAP Consolidated Results of Operations (1)

 

 

     Three Months Ended     Year Ended  
(Unaudited, 000s, except per share
information)		    12/31/2023      12/31/2022      % Change     9/30/2023      % Change     12/31/2023      12/31/2022      % Change  

Revenues:

                      

Commissions

    $ 173,614      $ 168,945        2.8 %    $ 165,075        5.2 %    $ 673,597      $ 710,589        (5.2 %) 

Principal transactions

      154,377        125,781        22.7 %      114,841        34.4 %      490,440        529,033        (7.3 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Transactional revenues

      327,991        294,726        11.3 %      279,916        17.2 %      1,164,037        1,239,622        (6.1 %) 

Capital raising

      76,286        56,771        34.4 %      49,615        53.8 %      265,667        256,862        3.4 % 

Advisory

      129,378        166,935        (22.5 %)      97,272        33.0 %      465,588        714,623        (34.8 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Investment banking

      205,664        223,706        (8.1 %)      146,887        40.0 %      731,255        971,485        (24.7 %) 

Asset management

      330,536        289,462        14.2 %      333,127        (0.8 %)      1,299,496        1,262,919        2.9 % 

Other income

      9,726        11,857        (18.0 %)      436        nm       8,763        19,680        (55.5 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Operating revenues

      873,917        819,751        6.6 %      760,366        14.9 %      3,203,551        3,493,706        (8.3 %) 

Interest revenue

      516,213        416,731        23.9 %      505,198        2.2 %      1,955,745        1,099,115        77.9 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total revenues

      1,390,130        1,236,482        12.4 %      1,265,564        9.8 %      5,159,296        4,592,821        12.3 % 

Interest expense

      243,711        114,839        112.2 %      220,536        10.5 %      810,338        201,331        302.5 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net revenues

      1,146,419        1,121,643        2.2 %      1,045,028        9.7 %      4,348,958        4,391,490        (1.0 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Non-interest expenses:

                      

Compensation and benefits

      665,234        633,392        5.0 %      606,116        9.8 %      2,522,431        2,547,118        (1.0 %) 

Occupancy and equipment rental

      88,127        80,555        9.4 %      84,342        4.5 %      339,087        312,590        8.5 % 

Communication and office supplies

      47,328        45,203        4.7 %      46,215        2.4 %      184,642        175,066        5.5 % 

Commissions and floor brokerage

      15,379        13,183        16.7 %      14,413        6.7 %      58,344        57,752        1.0 % 

Provision for credit losses

      2,263        6,028        (62.5 %)      9,992        (77.4 %)      24,999        33,506        (25.4 %) 

Other operating expenses

      105,172        86,088        22.2 %      160,750        (34.6 %)      449,541        313,243        43.5 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total non-interest expenses

      923,503        864,449        6.8 %      921,828        0.2 %      3,579,044        3,439,275        4.1 % 

Income before income taxes

      222,916        257,194        (13.3 %)      123,200        80.9 %      769,914        952,215        (19.1 %) 

Provision for income taxes

      47,009        62,999        (25.4 %)      46,466        1.2 %      201,109        239,863        (16.2 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net income

      175,907        194,195        (9.4 %)      76,734        129.2 %      568,805        712,352        (20.2 %) 

Preferred dividends

      9,320        9,320        0.0 %      9,321        (0.0 %)      37,281        37,281        0.0 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net income available to common shareholders

    $ 166,587      $ 184,875        (9.9 %)    $ 67,413        147.1 %    $ 531,524      $ 675,071        (21.3 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Earnings per common share:

                      

Basic

    $ 1.60      $ 1.71        (6.4 %)    $ 0.64        150.0 %    $ 4.98      $ 6.20        (19.7 %) 

Diluted

    $ 1.50      $ 1.58        (5.1 %)    $ 0.60        150.0 %    $ 4.68      $ 5.74        (18.5 %) 

Weighted average number of common shares outstanding:

 

           

Basic

      103,934        108,344        (4.1 %)      106,068        (2.0 %)      106,661        108,848        (2.0 %) 

Diluted

      111,330        117,223        (5.0 %)      113,195        (1.6 %)      113,453        117,540        (3.5 %) 

Cash dividends declared per common share

    $ 0.36      $ 0.30        20.0 %    $ 0.36        0.0 %    $ 1.44      $ 1.20        20.0 % 

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Fourth Quarter and Full Year 2023 Earnings Release    Page 4 of 18

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Consolidated Financial Summary

 

 

     Three Months Ended     Year Ended  
(Unaudited, 000s)    12/31/2023     12/31/2022     % Change     9/30/2023     % Change     12/31/2023     12/31/2022     % Change  

Net revenues:

                 

Global Wealth Management

    $ 766,028     $ 744,341       2.9 %    $ 768,558       (0.3 %)    $ 3,049,962     $ 2,825,866       7.9 % 

Institutional Group

      359,292       353,882       1.5 %      256,888       39.9 %      1,226,317       1,536,017       (20.2 %) 

Other

      21,059       23,424       (10.1 %)      19,605       7.4 %      72,665       29,556       145.9 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenues

    $ 1,146,379     $ 1,121,647       2.2 %    $ 1,045,051       9.7 %    $ 4,348,944     $ 4,391,439       (1.0 %) 

Operating expenses:

                 

Global Wealth Management

    $ 464,668     $ 427,270       8.8 %    $ 470,109       (1.2 %)    $ 1,834,140     $ 1,758,295       4.3 % 

Institutional Group

      351,521       309,370       13.6 %      284,692       23.5 %      1,224,217       1,281,885       (4.5 %) 

Other

      124,195       151,310       (17.9 %)      180,821       (31.3 %)      583,895       466,143       25.3 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

    $ 940,384     $ 887,950       5.9 %    $ 935,622       0.5 %    $ 3,642,252     $ 3,506,323       3.9 % 

Operating contribution:

                 

Global Wealth Management

    $ 301,360     $ 317,071       (5.0 %)    $ 298,449       1.0 %    $ 1,215,822     $ 1,067,571       13.9 % 

Institutional Group

      7,771       44,512       (82.5 %)      (27,804 )      (127.9 %)      2,100       254,132       (99.2 %) 

Other

      (103,136 )      (127,886 )      (19.4 %)      (161,216 )      (36.0 %)      (511,230 )      (436,587 )      17.1 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 205,995     $ 233,697       (11.9 %)    $ 109,429       88.2 %    $ 706,692     $ 885,116       (20.2 %) 

Financial ratios:

                 

Compensation and benefits

      58.8 %      57.8 %      100       58.7 %      10       58.7 %      58.9 %      (20 ) 

Non-compensation operating expenses

      23.2 %      21.4 %      180       30.8 %      (760 )      25.1 %      20.9 %      420  

Income before income taxes

      18.0 %      20.8 %      (280 )      10.5 %      750       16.2 %      20.2 %      (400 ) 

Effective tax rate

      21.1 %      24.4 %      (330 )      37.7 %      (1,660 )      26.1 %      25.2 %      90  

 

Stifel Financial Corp. Quarterly Financial Supplement | Fourth Quarter and Full Year 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)    12/31/2023     12/31/2022     % Change     9/30/2023     % Change  

Financial Information:

           

Total assets

    $ 37,727,460     $ 37,196,124       1.4 %    $ 37,877,577       (0.4 %) 

Total shareholders’ equity

    $ 5,294,431     $ 5,328,471       (0.6 %)    $ 5,242,594       1.0 % 

Total common equity

    $ 4,609,431     $ 4,643,471       (0.7 %)    $ 4,557,594       1.1 % 

Goodwill and intangible assets

    $ (1,521,522 )    $ (1,457,137 )      4.4 %    $ (1,526,572 )      (0.3 %) 

DTL on goodwill and intangible assets

    $ 72,927     $ 61,225       19.1 %    $ 69,187       5.4 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Tangible common equity

    $ 3,160,836     $ 3,247,559       (2.7 %)    $ 3,100,209       2.0 % 

Preferred equity

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

Financial Metrics:

           

Book value per common share (2)

    $ 45.61     $ 44.08       3.5 %    $ 44.20       3.2 % 

Tangible book value per common share (2)

    $ 31.28     $ 30.83       1.5 %    $ 30.06       4.1 % 

Return on common equity (3)

      13.4 %      14.5 %        5.1 %   

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

      14.6 %      16.0 %        5.8 %   

Return on tangible common equity (4)

      19.6 %      20.7 %        7.4 %   

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

      21.3 %      22.9 %        8.5 %   

Pre-tax margin on net revenues

      18.0 %      20.8 %        10.5 %   

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

      19.4 %      22.9 %        11.8 %   

Effective tax rate

      21.1 %      24.4 %        37.7 %   

Non-GAAP effective tax rate (1)

      21.1 %      24.5 %        37.7 %   

 

Stifel Financial Corp. Quarterly Financial Supplement | Fourth Quarter and Full Year 2023 Earnings Release    Page 6 of 18

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Regulatory Capital

 

 

     As of and for the Three Months Ended  
(Unaudited, 000s)    12/31/2023     12/31/2022     % Change     9/30/2023     % Change  

SF Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 3,230,965     $ 3,363,138       (3.9 %)    $ 3,228,952       0.1 % 

Tier 1 capital

    $ 3,915,965     $ 4,048,138       (3.3 %)    $ 3,913,952       0.1 % 

Risk-weighted assets

    $ 22,737,914     $ 23,026,900       (1.3 %)    $ 23,218,858       (2.1 %) 

Common equity tier 1 capital ratio

      14.2 %      14.6 %        13.9 %   

Tier 1 risk based capital ratio

      17.2 %      17.6 %        16.9 %   

Tier 1 leverage capital ratio

      10.5 %      11.1 %        10.8 %   

Stifel Bank & Trust Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 1,344,589     $ 1,620,995       (17.1 %)    $ 1,489,819       (9.7 %) 

Tier 1 capital

    $ 1,344,589     $ 1,620,995       (17.1 %)    $ 1,489,819       (9.7 %) 

Risk-weighted assets

    $ 11,349,836     $ 14,680,996       (22.7 %)    $ 13,782,746       (17.7 %) 

Common equity tier 1 capital ratio

      11.8 %      11.0 %        10.8 %   

Tier 1 risk based capital ratio

      11.8 %      11.0 %        10.8 %   

Tier 1 leverage capital ratio

      7.3 %      7.2 %        7.7 %   

Stifel Bank Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 788,811     $ 468,437       68.4 %    $ 690,456       14.2 % 

Tier 1 capital

    $ 788,811     $ 468,437       68.4 %    $ 690,456       14.2 % 

Risk-weighted assets

    $ 6,622,892     $ 4,229,316       56.6 %    $ 4,724,176       40.2 % 

Common equity tier 1 capital ratio

      11.9 %      11.1 %        14.6 %   

Tier 1 risk based capital ratio

      11.9 %      11.1 %        14.6 %   

Tier 1 leverage capital ratio

      7.2 %      7.1 %        7.1 %   

Stifel Net Capital (5):

           

Net capital

    $ 457,900     $ 538,600       (15.0 %)    $ 395,400       15.8 % 

Excess net capital

    $ 435,900     $ 516,300       (15.6 %)    $ 373,800       16.6 % 

 

Stifel Financial Corp. Quarterly Financial Supplement | Fourth Quarter and Full Year 2023 Earnings Release    Page 7 of 18

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Global Wealth Management - Summary Results of Operations

 

 

     Three Months Ended     Year Ended  
(Unaudited, 000s)    12/31/2023     12/31/2022     % Change     9/30/2023     % Change     12/31/2023     12/31/2022     % Change  

Revenues:

                 

Commissions

    $ 112,622     $ 112,644       (0.0 %)    $ 112,300       0.3 %    $ 444,949     $ 473,638       (6.1 %) 

Principal transactions

      56,849       52,913       7.4 %      53,247       6.8 %      209,282       195,274       7.2 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactional revenues

      169,471       165,557       2.4 %      165,547       2.4 %      654,231       668,912       (2.2 %) 

Asset management

      330,498       289,445       14.2 %      333,088       (0.8 %)      1,299,361       1,262,841       2.9 % 

Net interest

      257,920       284,998       (9.5 %)      269,431       (4.3 %)      1,086,628       879,780       23.5 % 

Investment banking (6)

      4,562       4,814       (5.2 %)      3,895       17.1 %      16,680       19,515       (14.5 %) 

Other income

      3,577       (473 )      856.2 %      (3,403 )      205.1 %      (6,938 )      (5,182 )      (33.9 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

      766,028       744,341       2.9 %      768,558       (0.3 %)      3,049,962       2,825,866       7.9 % 

Non-interest expenses:

                 

Compensation and benefits

      359,376       328,099       9.5 %      359,325       0.0 %      1,415,210       1,368,576       3.4 % 

Non-compensation operating expenses

      105,292       99,171       6.2 %      110,784       (5.0 %)      418,930       389,719       7.5 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-interest expenses

      464,668       427,270       8.8 %      470,109       (1.2 %)      1,834,140       1,758,295       4.3 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 301,360     $ 317,071       (5.0 %)    $ 298,449       1.0 %    $ 1,215,822     $ 1,067,571       13.9 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

As a percentage of net revenues:

                 

Compensation and benefits

      46.9 %      44.1 %      280       46.8 %      10       46.4 %      48.4 %      (200 ) 

Non-compensation operating expenses

      13.8 %      13.3 %      50       14.4 %      (60 )      13.7 %      13.8 %      (10 ) 

Income before income taxes

      39.3 %      42.6 %      (330 )      38.8 %      50       39.9 %      37.8 %      210  

 

Stifel Financial Corp. Quarterly Financial Supplement | Fourth Quarter and Full Year 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)    12/31/2023     12/31/2022     % Change     9/30/2023     % Change  

Financial advisors (including independent contractors) (7)

      2,386       2,344       1.8 %      2,374       0.5 % 

Total client assets

    $ 444,318,000     $ 389,818,000       14.0 %    $ 412,458,000       7.7 % 

Fee-based client assets

    $ 165,301,000     $ 144,952,000       14.0 %    $ 150,982,000       9.5 % 

Transactional assets

    $ 279,017,000     $ 244,866,000       13.9 %    $ 261,476,000       6.7 % 

Secured client lending (8)

    $ 3,064,000     $ 3,576,000       (14.3 %)    $ 3,083,000       (0.6 %) 

Asset Management Revenue (000s):

           

Private Client Group (9)

    $ 275,405     $ 240,446       14.5 %    $ 279,807       (1.6 %) 

Asset Management

      33,938       30,690       10.6 %      33,211       2.2 % 

Third-party Bank Sweep Program

      8,821       5,522       59.7 %      7,023       25.6 % 

Other (10)

      12,372       12,804       (3.4 %)      13,086       (5.5 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total asset management revenues

    $ 330,536     $ 289,462       14.2 %    $ 333,127       (0.8 %) 

Fee-based Assets (millions):

           

Private Client Group (9)

    $ 145,513     $ 126,043       15.4 %    $ 132,712       9.6 % 

Asset Management

      36,085       32,233       12.0 %      33,519       7.7 % 

Elimination (11)

      (16,297 )      (13,324 )      22.3 %      (15,249 )      6.9 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fee-based assets

    $ 165,301     $ 144,952       14.0 %    $ 150,982       9.5 % 

Third-party Bank Sweep Program

    $ 2,044     $ 1,984       3.0 %    $ 578       253.6 % 

ROA (bps) (12):

           

Private Client Group (9)

      83.0       80.9         82.5    

Asset Management

      37.6       38.1         39.6    

Third-party Bank Sweep Program

      451.2       137.2         429.7    

Stifel Bancorp Deposits (millions):

           

Sweep Deposits

    $ 9,642     $ 16,628       (42.0 %)    $ 11,142       (13.5 %) 

Smart Rate Deposits

      14,465       8,710       66.1 %      13,605       6.3 % 

Direct Wealth Management Deposits at Stifel Bancorp

      402       43       nm       397       1.3 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Stifel Bancorp Wealth Management Deposits

      24,509       25,381       (3.4 %)      25,144       (2.5 %) 

Other Bank Deposits

      2,826       1,736       62.8 %      2,450       15.3 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Stifel Bancorp Deposits

    $ 27,335     $ 27,117       0.8 %    $ 27,594       (0.9 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Short-term Treasuries (millions) (13)

    $ 7,855     $ 4,431       77.3 %    $ 7,586       3.5 % 

Wealth Management Cash (millions):

           

Stifel Bancorp Wealth Management Deposits

    $ 24,509     $ 25,381       (3.4 %)    $ 25,144       (2.5 %) 

Third-party Bank Sweep Program

      2,044       1,984       3.0 %      578       253.6 % 

Other Sweep Cash

      324       187       73.3 %      173       87.3 % 

Money Market Mutual Funds

      9,374       6,529       43.6 %      8,760       7.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Wealth Management Cash

    $ 36,251     $ 34,081       6.4 %    $ 34,655       4.6 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement | Fourth Quarter and Full Year 2023 Earnings Release    Page 9 of 18

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Institutional Group - Summary Results of Operations

 

 

     Three Months Ended     Year Ended  
(Unaudited, 000s)    12/31/2023     12/31/2022     % Change     9/30/2023     % Change     12/31/2023     12/31/2022     % Change  

Revenues:

                 

Commissions

    $ 60,992     $ 56,301       8.3 %    $ 52,775       15.6 %    $ 228,648     $ 236,951       (3.5 %) 

Principal transactions

      97,528       72,869       33.8 %      61,594       58.3 %      281,158       333,759       (15.8 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactional revenues

      158,520       129,170       22.7 %      114,369       38.6 %      509,806       570,710       (10.7 %) 

Capital raising

      71,724       51,956       38.0 %      45,719       56.9 %      248,987       237,347       4.9 % 

Advisory

      129,378       166,935       (22.5 %)      97,272       33.0 %      465,588       714,623       (34.8 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment banking

      201,102       218,891       (8.1 %)      142,991       40.6 %      714,575       951,970       (24.9 %) 

Other income (14)

      (330 )      5,821       (105.7 %)      (472 )      30.1 %      1,936       13,337       (85.5 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

      359,292       353,882       1.5 %      256,888       39.9 %      1,226,317       1,536,017       (20.2 %) 

Non-interest expenses:

                 

Compensation and benefits

      248,970       220,730       12.8 %      192,638       29.2 %      841,671       929,606       (9.5 %) 

Non-compensation operating expenses

      102,551       88,640       15.7 %      92,054       11.4 %      382,546       352,279       8.6 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-interest expenses

      351,521       309,370       13.6 %      284,692       23.5 %      1,224,217       1,281,885       (4.5 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income/(loss) before income taxes

    $ 7,771     $ 44,512       (82.5 %)    $ (27,804 )      127.9 %    $ 2,100     $ 254,132       (99.2 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

As a percentage of net revenues:

                 

Compensation and benefits

      69.3 %      62.4 %      690       75.0 %      (570 )      68.6 %      60.5 %      810  

Non-compensation operating expenses

      28.5 %      25.0 %      350       35.8 %      (730 )      31.2 %      23.0 %      820  

Income before income taxes

      2.2 %      12.6 %      (1,040 )      (10.8 %)      1,300       0.2 %      16.5 %      (1,630 ) 

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Fourth Quarter and Full Year 2023 Earnings Release    Page 10 of 18

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Stifel Bancorp - Financial Information and Credit Metrics

 

 

(Unaudited, 000s)    12/31/2023     12/31/2022     % Change     9/30/2023     % Change  

Stifel Bancorp Financial Information:

           

Total assets

    $ 29,722,320     $ 29,318,421       1.4 %    $ 29,872,977       (0.5 %) 

Total shareholder’s equity

    $ 2,154,839     $ 2,071,882       4.0 %    $ 2,162,000       (0.3 %) 

Total loans, net (includes loans held for sale)

    $ 19,729,804     $ 20,622,004       (4.3 %)    $ 20,435,170       (3.5 %) 

Residential real estate

      8,047,647       7,371,671       9.2 %      7,957,027       1.1 % 

Fund banking

      3,633,126       4,182,641       (13.1 %)      4,114,889       (11.7 %) 

Commercial and industrial

      3,566,987       4,897,176       (27.2 %)      4,367,671       (18.3 %) 

Securities-based loans

      2,306,455       2,724,551       (15.3 %)      2,317,631       (0.5 %) 

Construction and land

      1,034,370       593,191       74.4 %      851,709       21.4 % 

Commercial real estate

      660,631       675,599       (2.2 %)      670,907       (1.5 %) 

Other

      192,251       157,729       21.9 %      172,555       11.4 % 

Loans held for sale

      423,999       156,912       170.2 %      142,617       197.3 % 

Investment securities

    $ 7,439,109     $ 7,624,448       (2.4 %)    $ 7,411,040       0.4 % 

Available-for-sale securities, at fair value

      1,551,686       1,636,041       (5.2 %)      1,512,233       2.6 % 

Held-to-maturity securities, at amortized cost

      5,887,423       5,988,407       (1.7 %)      5,898,807       (0.2 %) 

Unrealized gains/(losses) on available-for-sale securities

      (175,943 )      (227,178 )      (22.6 %)      (250,506 )      (29.8 %) 

Total deposits

    $ 27,334,579     $ 27,117,111       0.8 %    $ 27,594,358       (0.9 %) 

Demand deposits (interest-bearing)

      27,111,072       26,805,073       1.1 %      27,335,890       (0.8 %) 

Demand deposits (non-interest-bearing)

      223,505       305,138       (26.8 %)      258,466       (13.5 %) 

Certificates of deposit

      2       6,900       nm       2       0.0 % 

Credit Metrics:

           

Allowance for credit losses

    $ 161,605     $ 147,853       9.3 %    $ 169,822       (4.8 %) 

Allowance as a percentage of retained loans

      0.83 %      0.72 %        0.83 %   

Net charge-offs as a percentage of average loans

      0.04 %      0.00 %        0.00 %   

Total nonperforming assets

    $ 45,456     $ 10,374       338.2 %    $ 50,719       (10.4 %) 

Nonperforming assets as a percentage of total assets

      0.15 %      0.04 %        0.17 %   

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Fourth Quarter and Full Year 2023 Earnings Release    Page 11 of 18

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Stifel Bancorp - Loan and Investment Portfolio

 

 

(Unaudited, millions)    12/31/2023      % of Total
Portfolio		                    

Loan Portfolio

         Commercial Portfolio by Major Sector      

Residential real estate

    $ 8,048        31 %   

Industrials

    $ 881        25 % 

Securities-based loans

      2,306        9 %   

Financials

      831        23 % 

Home equity lines of credit and other

      192        1 %   

Information technology

      510        14 % 
  

 

 

     

 

 

          

Total consumer

      10,546        41 %   

Consumer discretionary

      375        11 % 
  

 

 

     

 

 

          

Fund banking

      3,633        14 %   

REITs

      218        6 % 

Commercial and industrial

      3,567        14 %   

Materials

      196        5 % 

Construction and land

      1,034        4 %   

Healthcare

      195        5 % 

Commercial real estate

      661        3 %   

Hotel, leisure, restaurants

      120        3 % 
  

 

 

     

 

 

          

Total commercial

      8,895        35 %   

Communication services

      119        3 % 
  

 

 

     

 

 

          

Total loan portfolio

      19,441        76 %   

Consumer staples

      85        2 % 
  

 

 

     

 

 

          

Unfunded commitments

      6,299        24 %         
  

 

 

     

 

 

          

Total

    $ 25,740        100 %         
  

 

 

     

 

 

          
        CLO by Major Sector      
       

High tech industries

    $ 591        10 % 

Investment Portfolio

        

Healthcare & pharmaceuticals

      585        10 % 

CLO

    $ 5,854        77 %   

Services: business

      522        9 % 

Agency MBS

      858        11 %   

Banking, finance, insurance, & real estate

      518        9 % 

Corporate bonds

      615        8 %   

Media: broadcasting & subscription

      253        4 % 

SBA

      123        2 %   

Construction & building

      248        4 % 

Student loan ARS

      92        1 %   

Chemicals, plastics, & rubber

      244        4 % 

CMBS

      70        1 %   

Services: consumer

      244        4 % 

Other

      3        0 %   

Telecommunications

      234        4 % 
  

 

 

     

 

 

          

Total Portfolio

    $ 7,615        100 %   

Hotel, gaming, & leisure

      228        4 % 
  

 

 

     

 

 

          

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Fourth Quarter and Full Year 2023 Earnings Release    Page 12 of 18

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Loans and Lending Commitments - Allowance for Credit Losses

 

 

     December 31, 2023               
(Unaudited, 000s)    Loans and Lending
Commitments		      ACL      ACL %     Q4 Provision  

Residential real estate

    $ 8,047,647      $ 13,855        0.17 %    $ (752 ) 

Fund banking

      3,633,126        10,173        0.28 %      (1,345 ) 

Commercial and industrial

      3,566,987        67,077        1.88 %      598  

Securities-based loans

      2,306,455        3,035        0.13 %      17  

Construction and land

      1,034,370        11,817        1.14 %      317  

Commercial real estate

      660,631        21,386        3.24 %      1,521  

Other

      192,251        949        0.49 %      320  
  

 

 

     

 

 

       

 

 

  

Loans held for investment, gross

      19,441,467        128,292        0.66 %      676  

Loans held for sale

      423,999          
  

 

 

          

Total loans, gross

      19,865,466          

Lending-related commitments (unfunded)

      6,298,530        33,313        0.53 %      (713 ) 
  

 

 

     

 

 

       

 

 

  

Loans and lending-related commitments

    $ 26,163,996      $ 161,605        $ (37 ) 
  

 

 

     

 

 

       

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Fourth Quarter and Full Year 2023 Earnings Release    Page 13 of 18

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Consolidated Net Interest Income

 

 

    Three Months Ended  
    December 31, 2023     December 31, 2022     September 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

   $ 2,956.9     $ 40.1       5.42 %    $ 1,641.8     $ 18.3       4.45 %    $ 2,595.1     $ 35.6       5.48 % 

Financial instruments owned

     962.2       4.0       1.65 %      906.2       7.5       3.31 %      875.6       4.4       2.01 % 

Margin balances

     750.0       15.3       8.14 %      985.2       15.6       6.33 %      768.2       15.6       8.15 % 

Investments:

                  

Asset-backed securities

     6,079.2       112.4       7.39 %      6,216.5       86.1       5.54 %      6,130.3       111.0       7.25 % 

Mortgage-backed securities

     935.5       5.3       2.27 %      1,003.6       5.4       2.15 %      957.3       5.3       2.22 % 

Corporate fixed income securities

     617.1       4.3       2.78 %      646.4       4.5       2.79 %      619.5       4.3       2.77 % 

Other

     4.7       —         2.55 %      4.5       —         2.18 %      4.8       0.1       2.55 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total investments

     7,636.5       122.0       6.39 %      7,871.0       96.0       4.88 %      7,711.9       120.7       6.26 % 

Loans:

                  

Residential real estate

     8,027.0       69.4       3.46 %      7,240.6       55.7       3.08 %      7,839.4       61.7       3.15 % 

Commercial and industrial

     4,073.9       90.5       8.89 %      4,997.7       84.4       6.75 %      4,372.4       96.8       8.86 % 

Fund banking

     4,076.5       80.9       7.94 %      4,348.7       65.3       6.01 %      4,155.7       83.0       7.99 % 

Securities-based loans

     2,318.7       42.5       7.33 %      2,735.5       40.0       5.85 %      2,342.4       42.7       7.30 % 

Commercial real estate

     659.3       12.3       7.49 %      805.3       12.5       6.22 %      668.0       13.4       8.00 % 

Construction and land

     942.8       20.2       8.57 %      583.7       9.9       6.77 %      820.5       17.3       8.44 % 

Loans held for sale

     254.0       4.7       7.40 %      168.0       2.1       5.09 %      202.2       2.6       5.06 % 

Other

     186.9       3.7       7.90 %      147.6       2.3       6.46 %      162.2       3.2       7.86 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total loans

     20,539.1       324.2       6.31 %      21,027.1       272.2       5.18 %      20,562.8       320.7       6.24 % 

Other interest-bearing assets

     812.3       10.6       5.26 %      770.6       7.1       3.69 %      730.9       8.2       4.49 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing assets/ interest income

     33,657.0       516.2       6.13 %      33,201.9       416.7       5.02 %      33,244.5       505.2       6.08 % 

Interest-bearing liabilities:

                  

Senior notes

     1,115.5       12.5       4.48 %      1,114.4       10.5       3.77 %      1,115.2       12.5       4.49 % 

Deposits

     27,457.7       218.0       3.18 %      27,267.0       98.7       1.45 %      27,247.4       198.2       2.91 % 

Other interest-bearing liabilities

     1,384.6       13.2       3.81 %      1,303.0       5.6       1.72 %      1,218.9       9.8       3.23 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing liabilities/ interest expense

   $ 29,957.8       243.7       3.25 %    $ 29,684.4       114.8       1.55 %    $ 29,581.5       220.5       2.98 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

Net interest income/margin

     $ 272.5       3.24 %      $ 301.9       3.64 %      $ 284.7       3.43 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Fourth Quarter and Full Year 2023 Earnings Release    Page 14 of 18

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Stifel Bancorp Net Interest Income

 

 

     Three Months Ended  
     December 31, 2023     December 31, 2022     September 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

    $ 1,841.8      $ 26.4        5.73 %    $ 889.4      $ 9.4        4.24 %    $ 1,536.8      $ 21.9        5.70 % 

Investments

      7,636.5        122.0        6.39 %      7,871.0        96.0        4.88 %      7,711.9        120.7        6.26 % 

Loans

      20,539.1        324.2        6.31 %      21,027.1        272.2        5.18 %      20,562.8        320.7        6.24 % 

Other interest-bearing assets

      64.7        0.7        4.55 %      55.1        0.7        4.56 %      64.9        0.7        4.08 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total interest-bearing assets/ interest income

    $ 30,082.1      $ 473.3        6.29 %    $ 29,842.6      $ 378.3        5.07 %    $ 29,876.4      $ 464.0        6.21 % 

Interest-bearing liabilities:

                         

Deposits

    $ 27,457.7      $ 218.0        3.18 %    $ 27,267.0      $ 98.7        1.45 %    $ 27,247.4      $ 198.2        2.91 % 

Other interest-bearing liabilities

      73.2        1.4        7.70 %      0.9        0.1        15.64 %      0.9        0.2        80.57 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total interest-bearing liabilities/ interest expense

    $   27,530.9        219.4        3.19 %    $   27,267.9        98.8        1.45 %    $   27,248.3        198.4        2.91 % 
     

 

 

     

 

 

       

 

 

     

 

 

       

 

 

     

 

 

  

Net interest income/margin

       $ 253.9        3.38 %       $ 279.5        3.75 %       $ 265.6        3.56 % 
     

 

 

     

 

 

       

 

 

     

 

 

       

 

 

     

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Fourth Quarter and Full Year 2023 Earnings Release    Page 15 of 18

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GAAP to Core Reconciliation

 

 

     Three Months Ended     Year Ended  
(Unaudited, 000s)    12/31/2023     12/31/2022     Change     9/30/2023     Change     12/31/2023     12/31/2022     Change  

GAAP net revenues

    $ 1,146,379     $ 1,121,647       $ 1,045,051       $ 4,348,944     $ 4,391,439    

Non-GAAP adjustments

      40       (4 )        (23 )        14       51    
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP net revenues

      1,146,419       1,121,643         1,045,028         4,348,958       4,391,490    

GAAP compensation and benefits expense

      674,437       647,962         613,287         2,554,581       2,586,232    

Merger-related (15)

      (9,203 )      (14,570 )        (7,171 )        (32,150 )      (39,114 )   
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP compensation and benefits expense

      665,234       633,392         606,116         2,522,431       2,547,118    

GAAP non-compensation operating expenses

      265,947       239,988         322,335         1,087,671       920,091    

Merger-related (15)

      (7,678 )      (8,931 )        (6,623 )        (31,058 )      (27,934 )   
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP non-compensation operating expenses

      258,269       231,057         315,712         1,056,613       892,157    
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Total merger-related adjustments

      (16,921 )      (23,497 )        (13,771 )        (63,222 )      (67,099 )   
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

GAAP provision for income taxes

      43,511       57,076         41,268         184,156       222,961    

Merger-related and other (15)

      3,498       5,923         5,198         16,953       16,902    
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP provision for income taxes

      47,009       62,999         46,466         201,109       239,863    

Financial ratios:

                 

Compensation and benefits

      58.0 %      56.5 %      150       58.0 %      —         58.0 %      58.0 %      —    

Non-compensation operating expenses

      22.6 %      20.6 %      200       30.2 %      (760 )      24.3 %      20.3 %      400  

Income before income taxes

      19.4 %      22.9 %      (350 )      11.8 %      760       17.7 %      21.7 %      (400 ) 

Effective tax rate

      21.1 %      24.5 %      (340 )      37.7 %      (1,660 )      26.1 %      25.2 %      90  

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Fourth Quarter and Full Year 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 $71.1 million, $60.4 million, and $67.4 million, as of December 31, 2023 and 2022, and September 30, 2023, respectively.

(5)

Regulatory capital amounts and ratios are estimates as of the date of the Company’s earnings release, January 24, 2024.

(6)

Includes capital raising and advisory revenues.

(7)

Includes independent contractors of 108, 102, and 108 as of December 31, 2023 and 2022, and September 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 daily balances for Individual Program Banks. Prior to Q4 2023, ROA for Individual Program Banks was calculated on average quarterly balances. Prior periods have not been restated to reflect the change as the differences are immaterial.

(13)

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 | Fourth Quarter and Full Year 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 fourth quarter earnings release issued January 24, 2024.

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Fourth Quarter and Full Year 2023 Earnings Release    Page 18 of 18