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UNITED STATES FORM 8-K CURRENT REPORT Date of Report (Date
of earliest event reported): August 10, 2009 STIFEL FINANCIAL CORP. Delaware 1-9305 43-1273600 Registrant's telephone number,
including area code (314) 342-2000 ___________________________N/A___________________________ Check the appropriate box below if the Form
8-K filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions (see General Instruction A.2.
below): [
] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425) Item 2.02 Results of
Operations and Financial Condition. On
August 10, 2009 Stifel Financial Corp. announced its results for the three and
six months ended
June 30, 2009. A copy of the related press release is
attached hereto as Exhibit 99.1. Stifel
Financial Corp. will hold a conference call on Monday, August 10, 2009, at 4:30
p.m. EST. This call will be Web cast and slides can be accessed on the Investor
Relations portion of the Stifel Financial Corp. website at www.stifel.com, as
well as on all sites within Thomson/CCBN's Investor Distribution Network. To
participate on the call, please dial 888-676-3684 and request the Stifel
Financial Corp. earnings call. The conference call slide show is attached
hereto as Exhibit 99.2. The
exhibits are "furnished" pursuant to Item 2.02 "Results of
Operations and Financial Condition," is not to be considered
"filed" under the Securities Exchange Act of 1934, as amended, ("Exchange
Act") and shall not be incorporated by reference into any filing by Stifel
Financial Corp. under the Securities Act of 1933, as amended, ("Securities
Act") or the Exchange Act. Items 9.01 Financial Statements and Exhibits. (c) Exhibits: The following exhibits are
"furnished" pursuant to Item 12 "Disclosure of Results of
Operations and Financial Condition," is not to be considered
"filed" under the Securities Exchange Act of 1934, as amended,
("Exchange Act") and shall not be incorporated by reference into any
filing by Stifel Financial Corp. under the Securities Act of 1933, as amended,
("Securities Act") or the Exchange Act. Exhibit 99.1: Stifel Financial Corp.'s press release
dated August 10, 2009. Exhibit 99.2: Stifel Financial Corp.'s Investor
Presentation. SIGNATURE Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized. STIFEL FINANCIAL CORP. Date:
August 10, 2009 By:
/s/ James M. Zemlyak
Name: James
M. Zemlyak
Title: Chief
Financial Officer Exhibit Index Exhibit No. Description 99.1 Stifel
Financial Corp.'s press release dated August 10, 2009. 99.2 Stifel
Financial Corp.'s Investor Presentation. &n
bsp; STIFEL
FINANCIAL CORP. [Stifel Financial Corp. logo] Stifel
Financial News One Financial Plaza For further information contact: James M. Zemlyak, Chief Financial Officer
For Immediate Release Stifel Financial
Corp. Announces 2009 Second Quarter Results
&nb
sp; St. Louis, Missouri- August 10, 2009- Stifel Financial Corp. (NYSE: "SF") today reported unaudited quarterly
net income of $15.8 million, or $0.51 per diluted share, on record net revenues
of $261.5 million for the quarter ended June 30, 2009. For the comparable
quarter of 2008, net income was $12.3 million, or $0.45 per diluted share, on
net revenues of $209.0 million. For the
six months ended June 30, 2009, we posted net income of $29.0 million, or $0.94
per diluted share, on record six month net revenues of $481.5 million, compared
with $26.7 million, or $0.99 per diluted share, on net revenues of $420.4
million, for the same period one year earlier. Our 2008 second quarter and first half included acquisition charges of
$4.0 million, or $0.15 per diluted share, and $8.0 million, or $0.30 per
diluted share, respectively. All prior
period share and earnings per share amounts have been retroactively restated to
reflect the three-for-two stock split distributed in June 2008. At June 30, 2009, our
stockholders' equity was $702.7 million, resulting in book value per share of $24.86.
Chairman and Chief
Executive Officer, Ronald J. Kruszewski, commented, "All things
considered, we are reporting a very acceptable quarter and first half of the
year. Our record second quarter and year to date net revenues were driven
by a very strong performance by our capital markets segment, in particular in
fixed income sales and trading, which further validates our 2005 acquisition of Legg
Mason Capital Markets and our continued commitment to take advantage of
opportunities as they arise. While our profit margins have declined as we
build our infrastructure to absorb the upcoming conversion of the UBS branches
in the third quarter and the organic growth we've experienced, we are poised to
take advantage of the economies of scale we have added over the past year
across all segments." Mr. Kruszewski continued, " As a
result of our previously announced hiring of Victor Nesi as co-head of capital
markets, we have changed our management of the equity and fixed income capital
markets segments and consequently the reporting of those segments will be
combined effective June 30, 2009 and retrospectively. " Stifel Financial Corp. Summary of Results of Operations(Unaudited) ($ In Thousands, Except Per Share Amounts) Three Months Ended Percent Change From 6/30/2009 % of Net Revenues 3/31/2009 % of Net Revenues 6/30/2008 % of Net Revenues 3/31/2009 6/30/2008 Commissions $ 80,721 30.9% $ 74,610 33.9% $ 83,063 39.8% 8% -3% Principal transactions 121,261 46.4% 97,278 44.2% 65,674 31.4% 25% 85% Investment banking 24,702 9.5% 15,504 7.1% 20,935 10.0% 59% 18% Asset management and service
fees 24,543 9.4% 24,933 11.3% 29,966 14.3% -2% -18% Other 2,739 1.0% 115 0.1% 1,715 0.8% 2282% 60% Total operating
revenues 253,966 97.1% 212,440 96.6% 201,353 96.3% 20% 26% Interest revenue 10,584 4.0% 9,892 4.5% 12,667 6.1% 7% -16% Total revenues 264,550 101.2% 222,332 101.1% 214,020 102.4% 19% 24% Less: Interest expense 3,045 1.2% 2,351 1.1% 5,069 2.4% 30% -40% Net revenues 261,505 100.0% 219,981 100.0% 208,951 100.0% 19% 25% Non-Interest Expenses Employee compensation and
benefits 175,881 67.3% 147,840 67.2% 144,795 69.3% 19% 21% Occupancy and equipment
rental 20,714 7.9% 17,867 8.1% 16,010 7.6% 16% 29% Communication and office
supplies 13,129 5.0% 11,845 5.4% 9,748 4.7% 11% 35% Commissions and floor
brokerage 6,321 2.4% 4,360 2.0% 3,486 1.7% 45% 81% Other operating expenses 19,351 7.4% 15,914 7.2% 14,762 7.1% 22% 31% Total non-interest
expenses 235,396 90.0% 197,826 89.9% 188,801 90.4% 19% 25% Income before
income taxes 26,109 10.0% 22,155 10.1% 20,150 9.6% 18% 30% Provision for income taxes 10,294 3.9% 8,978 4.1% 7,818 3.7% 15% 32% Net
income $ 15,815 6.1% $ 13,177 6.0% $ 12,332 5.9% 20% 28% Per Share information Earnings
Per Share: Basic $ 0.58 $ 0.49 $ 0.53 18% 9% Diluted $ 0.51 $ 0.44 $ 0.45 16% 13% Weighted average common equivalent shares Basic shares 27,455 26,772 23,449 3% 17% Diluted shares 31,270 30,198 27,229 4% 15% Statistical Information Book Value Per Share $ 24.86 $ 23.19 $ 19.75 7% 26% Investment Executives 1,562 1,394 1,178 12% 33% Full-Time Employees 3,849 3,560 3,053 8% 26% Locations 239 230 185 4% 29% Total Client Assets (in
thousands) $ 64,653,000 $ 54,854,000 $58,060,000 18% 11% Six Months Ended Net Revenues 6/30/2009 % of Net Revenues 6/30/2008 % of Net Revenues % Change Commissions $ 155,331 32.3% $ 168,764 40.1% -8% Principal transactions 218,539 45.4% 132,611 31.6% 65% Investment banking 40,206 8.4% 42,779 10.2% -6% Asset management and service
fees 49,476 10.3% 60,244 14.3% -18% Other 2,854 0.4% 508 0.1% 462% Total operating
revenues 466,406 96.8% 404,906 96.3% 15% Interest revenue 20,476 4.3% 26,356 6.3% -22% Total revenues 486,882 101.1% 431,262 102.6% 13% Less: Interest expense 5,396 1.1% 10,834 2.6% -50% Net revenues 481,486 100.0% 420,428 100.0% 15% Non-Interest Expenses Employee compensation and
benefits 323,721 67.3% 290,825 69.2% 11% Occupancy and equipment
rental 38,581 8.0% 31,726 7.5% 22% Communication and office
supplies 24,974 5.2% 21,695 5.2% 15% Commissions and floor
brokerage 10,681 2.2% 3,967 0.9% 169% Other operating expenses 35,265 7.3% 28,140 6.7% 25% Total non-interest
expenses 433,222 90.0% 376,353 89.5% 15% Income before
income taxes 48,264 10.0% 44,075 10.5% 10% Provision for income taxes 19,272 4.0% 17,396 4.1% 11% Net
income $ 28,992 6.0% $ 26,679 6.4% 9% Per Share information Revenues: 6/30/2009 6/30/2008 % Change Earnings
Per Share: Basic $ 1.07 $ 1.14 -6% Diluted $ 0.94 $ 0.99 -5% Weighted average common equivalent shares Basic shares 27,116 23,363 16% Diluted shares 30,752 26,931 14% Second Quarter Highlights For the three months ended June 30, 2009,
we posted record net revenues of $261.5 million, a 25% increase from the prior
year second quarter and a 19% increase from the first quarter of 2009. Our
revenue growth was primarily derived from increased principal transactions and
investment banking offset by a decline in commissions and asset management
fees. Net income of $15.8 million, or $0.51 per diluted share, increased 28%
over the prior year second quarter and increased 20% from the first quarter of
2009.
&nb
sp; We completed an "at the market" common stock offering
where we sold 1,000,000 shares at a weighted average price of $45.00 per share.
Revenues Commission revenue of $80.7
million decreased 3% from the 2008 second quarter and increased 8% from the
first quarter of 2009. Principal transactions
revenue of $121.3 million increased 85% over the prior year second quarter
and increased 25% from the first quarter of 2009. Principal transactions
increased in the Private Client Investment banking revenue increased
18% to $24.7 million from the prior year second quarter and increased 59% from
the first quarter of 2009. Capital raising revenues increased 21% to $14.2
million Asset management and service fees
revenue decreased 18% to $24.5 million from the prior year second quarter primarily
as a result of a 24% decrease in the value of assets in fee based client
accounts, Non-interest expenses Employee compensation and benefits
increased 21% to $175.9 million from the prior year second quarter and
increased 19% from the first quarter of 2009, primarily due to increased
production and Non-compensation operating
expenses increased 35% to $59.5 million from the prior year second quarter, and
increased 18% from the first quarter of 2009 primarily due to the
aforementioned YTD Highlights For the six months ended June 30, 2009,
we posted record net revenues of $481.5 million, a 15% increase for the six
months as compared to the first six months of 2008. Our revenue growth was
primarily derived from increased principal transactions offset by a decline in
commissions, investment banking, and asset management fees. Net income increased
9% to $29.0 million, or $0.94 per diluted share. We announced an agreement to acquire from
UBS Financial Services Inc. 56 branches from UBS Wealth Management Americas
branch network. Revenues Commission revenue of $155.3
million decreased 8% from the 2008 first six months. Principal transactions revenue
increased 65% to $218.6 million from the prior year six months. Principal
transactions increased in the PCG and CM segments, primarily in corporate, government
and Investment banking revenue decreased
6% to $40.2 million from the prior year six months as a result of the industry
wide decline in common stock offerings and mergers and acquisitions, primarily
in the Asset management and service fees
revenue decreased 18% to $49.5 million from the prior year six months,
primarily as a result of a 25% decrease in the value of assets in fee based client
accounts. Customer margin revenue decreased
$6.7 million or 55% from the prior year six months, primarily as a result of a
decrease in the margin receivables due to market volatility. Non-interest expenses Employee compensation and benefits
increased 11% to $323.7 million from the prior year six months, primarily due
to increased production and headcount associated with the expansion of our PCG
and Non-compensation operating
expenses increased 28% to $109.5 million from the prior year six months,
primarily due to the aforementioned expansion of our PCG and CM segments in the
first half of Stifel Financial Corp. Summary of Segment Data (Unaudited) Segment Data ($ In Thousands) Three Months Ended Percent Change From Six Months Ended Change Net Revenues 6/30/2009 3/31/2009 6/30/2008 3/31/2009 6/30/2008 6/30/2009 6/30/2008 Percent Private
Client $ 131,164 $ 110,524 $ 120,999 19% 8% $ 241,688 $ 235,852 2% Capital Markets 125,136 105,472 82,720 19% 51% 230,608 175,950 31% Stifel
Bank 4,146 3,640 3,237 14% 28% 7,786 5,319 46% Other 1,059 345 1,995 207% -47% 1,404 3,307 -58% Total net revenues $ 261,505 $ 219,981 $ 208,951 19% 25% $ 481,486 $ 420,428 14% Operating Contribution Private Client $ 20,636 $ 15,460 $ 29,856 33% -31% $ 36,096 $ 55,461 -35% Capital Markets 31,850 26,034 15,370 22% 107% 57,884 37,210 56% Stifel Bank 1,671 1,774 422 -6% 296% 3,445 731 371% Other/unallocated
overhead (28,048) (21,113) (25,498) n/a n/a (49,161) (49,327) n/a
Income before income taxes $ 26,109 $ 22,155 $ 20,150 18% 30% $ 48,264 $ 44,075 10% Second Quarter Highlights Net revenues of $131.2 million, an 8% increase over the prior year
second quarter and a 19% increase from the first quarter of 2009. Operating contribution of $20.6 million, a 31% decrease over the prior
year second quarter and a 33% increase from the first quarter of 2009. Commissions and principal transactions revenue increased 24% over the
prior year second quarter and increased 24% from the first quarter of 2009. Investment banking revenues decreased 54% from the prior year second
quarter and increased 37% from the first quarter of 2009. Asset management and service fees revenue decreased 18% from the prior
year second quarter and decreased 2% from the first quarter of 2009. For the three months ended March 31, 2009, employee compensation and
benefits was 63% of net revenues compared to 60% for the same period last year
and 65% for the first quarter of 2009. YTD Highlights Net revenues of $241.7 million, a 2%
increase over the prior year first six months. Operating contribution of $36.1
million, a 35% decrease over the same period last year. Commission and principal
transactions revenue increased 14% over the previous year first six months. Investment banking revenue, which
represents sales commissions on capital raising activities, decreased 52% from
the prior year six months. Asset management and service fees
revenue decreased 18% from the prior year first six months. For the six months ended June 30,
2009, employee compensation and benefits was 64% of net revenues compared to 62%
for the same period last year. We completed the integration of Butler Wick PCG offices we acquired on
December 31, 2008. We added 36 PCG offices and 351 Financial Advisors, including 17
offices and 67 Financial Advisors from Butler Wick, in the first six months as
part of our ongoing footprint expansion efforts. We announced an agreement to acquire from UBS Financial Services Inc. 56
branches from UBS Wealth Management Americas branch network. Stifel Financial Corp. Private Client Group Segment Data (Unaudited) ($ in thousands) Three Months Ended Percent Change From Six Months Ended Change Revenues: 6/30/2009 3/31/2009 6/30/2008 3/31/2009 6/30/2008 6/30/2009 6/30/2008 Percent Commissions $ 52,091 $ 43,215 $ 49,311 21% 6% $ 95,307 $ 97,297 -2% Principal
transactions 48,759 38,438 32,229 27% 51% 87,196 62,195 40% Investment
banking 2,843 2,070 6,216 37% -54% 4,913 10,319 -52% Asset
management and service fees 24,452 24,831 29,941 -2% -18% 49,283 60,088 -18% Net
interest & other 3,019 1,970 3,302 53% -9% 4,989 5,953 -16%
Total net revenues 131,164 110,524 120,999 19% 8% 241,688 235,852 2% Non-interest expenses: Employee
compensation and benefits 83,208 72,218 72,691 15% 14% 155,426 145,536 7% Other
non-interest expenses 27,320 22,846 18,452 20% 48% 50,166 34,855 44%
Total non-interest expenses 110,528 95,064 91,143 16% 21% 205,592 180,391 14%
Income before income taxes $ 20,636 $ 15,460 $ 29,856 33% -31% $ 36,096 $ 55,461 -35% Ratios to Net Revenues Employee
compensation and benefits 63% 65% 60% 64% 62% Other
non-interest expenses 21% 21% 15% 21% 15% Net
margins 16% 14% 25% 15% 24% Second Quarter Highlights Net revenues of $125.1
million, a 51% increase over the prior year second quarter and a 19% increase
from the first quarter of 2009. Our Capital Markets segment consists of Equity
Capital Markets Operating contribution of $31.9 million, a 107% increase over the prior
year second quarter and a 22% increase from the first quarter of 2009. Commissions and principal transactions revenue increased 51% over the
prior year second quarter and increased 12% from the first quarter of 2009. ECM
increased 6% to $38.1 million from the prior Investment banking revenues increased 49% over the prior year second
quarter and increased 63% from the first quarter of 2009. ECM increased 47%
from the prior year second quarter and increased Net margins were 25% compared to 19%
for the prior year second quarter and 25% in the first quarter 2009. For the three months ended June 30, 2009, employee compensation and
benefits was 59% of net revenues compared to 64% for the prior year second
quarter and 59% for the first quarter 2009. YTD Highlights Net revenues of $230.6 million, a 31%
increase over the prior year first six months. ECM had net revenues of $103.0
million, a 6% increase over the prior year first six months. FICM had net
revenues Commission and principal
transactions revenue increased 35% over the same period last year. ECM and FICM
commission and principal transactions increased 6% and 63% to $74.9 million and
$116.5 Investment banking revenue increased
9% from the prior years six months. ECM and FICM investment banking revenue
increased 5% and 22%, respectively, over the prior year first six months. For the six months ended June 30,
2009, employee compensation and benefits was 59% of net revenues compared to 62%
for the same period last year. Net margins were 25% compared to 21%
in the prior year six month period. We added 32 revenue producers in
the first six months of 2009. Stifel Financial Corp. Capital Markets Group Segment Data (Unaudited) ($ in thousands) Three Months Ended Percent Change From Six Months Ended Change Revenues: 6/30/2009 3/31/2009 6/30/2008 3/31/2009 6/30/2008 6/30/2009 6/30/2008 Percent Commissions $ 28,630 $ 31,395 $ 33,752 9% -15% $ 60,024 $ 71,467 -20% Principal
transactions 72,502 58,840 33,445 23% 117% 131,343 70,416 87% Capital
raising 11,391 3,429 5,595 232% 104% 14,820 14,524 2% Advisory fees 10,467 10,006 9,124 5% 15% 20,473 17,936 14% Investment
banking 21,858 13,435 14,719 63% 49% 35,293 32,460 9% Net
interest & other 2,146 1,802 804 19% 167% 3,948 1,607 146%
Total net revenues 125,136 105,472 82,720 19% 51% 230,608 175,950 31% Non-interest expenses: Employee
compensation and benefits 74,250 62,518 52,615 19% 41% 136,768 109,845 25% Other
non-interest expenses 19,036 16,920 14,735 13% 29% 35,956 28,895 24%
Total non-interest expenses 93,286 79,438 67,350 17% 39% 172,724 138,740 24%
Income before income taxes $ 31,850 $ 26,034 $ 15,370 22% 107% $ 57,884 $ 37,210 56% Ratios to Net Revenues Employee
compensation and benefits 59% 59% 64% 59% 62% Other
non-interest expenses 15% 16% 18% 16% 16% Net
margins 25% 25% 19% 25% 21% Second Quarter Highlights Net revenues of $4.1 million increased 22% over the prior year second
quarter and increased 14% over the first quarter of 2009. Operating contributions of $1.7 million increased 296% over the prior
year second quarter and decreased 6% from the first quarter of 2009. Total retained loans, net, increased 8% from the prior year second
quarter and decreased 1% over the first quarter of 2009. Total assets increased 77% over the prior year second quarter, and
increased 2% over the first quarter of 2009. Non-performing loans as a percentage of total assets were 0.84%, an increase
from 0.41% in the prior year second quarter and increased from 0.48% in the
first quarter of 2009. YTD Highlights Net revenues of $7.8 million
increased 46% over the prior year first six months. Operating contribution of $3.4
million increased 371% over the prior year first six months Total retained loans, net,
increased 8% over the prior year. Total assets increased 79% over
the prior year. Total deposits increased 112% over
the prior year.
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Pursuant To Section 13 OR 15(d) of The Securities Exchange Act of 1934
(Exact name of
registrant as specified in its charter)
(State
of incorporation)
(Commission
File Number)
(IRS
Employer
Identification No.)One Financial Plaza
501 North Broadway
St. Louis, Missouri 63102-2102
(Address of principal executive offices,
including zip code)
(Former name or former address, if changed since last report)
[
] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[
] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Form 8-K Dated August 10, 2009
Exhibit 99: Press Release
501 North Broadway
St. Louis, MO 63102
(314) 342-2000
(314) 342-2228 zemlyakj@stifel.com
Record Quarterly Net Revenues of $261.5
million up 25%,
Record 1st Half Net
Revenues of $481.5 million, up 15%Chairman's Comments
Review of Business
Highlights
Group ("PCG") and Capital Markets ("CM") segments, primarily in
corporate, government and municipal debt and corporate equity.
as compared to the prior year second quarter and increased 159% from
the first quarter of 2009. Strategic advisory fees increased 15% to $10.5
million as compared to the prior year second quarter
and increased 5% from the
first quarter of 2009.
and decreased 2% from the first quarter of 2009, primarily as a
result of a 2% decrease in the value of assets in fee based client accounts.
headcount associated with the expansion of our PCG and CM
segments. Compensation and benefits includes $13.4 million or 5.1% of net
revenues, of amortization of hiring incentives.
expansion of our PCG and CM segments.
municipal debt and corporate equity.
first quarter. Capital raising revenues decreased 21% to $19.7 million
while strategic advisory fees increased 14% to $20.5 million as compared to the
first six months of 2008.
CM segments in the first half of 2009. Compensation and
benefits includes $25.1 million, or 5.2% of net revenues, of amortization of
hiring incentives.
2009.
Business Segment Results
Private Client Group Segment
Capital Markets Segment
("ECM") and Fixed Income
Capital Markets
("FICM"). ECM had net revenues of $55.9 million, a 16% increase over the
prior year second quarter and a 19% increase from the first quarter 2009. FICM
had
net revenues of $69.2 million a 100% increase over the prior year second
quarter and a 19% increase from the first quarter 2009.
year second quarter and increased
4% from the first quarter of 2009. FICM increased 101% to $63.1 million from
the prior year second quarter and increased 18% from the first quarter of 2009.
73% from the first quarter of
2009. FICM increased 54% from the prior year second quarter and increased 32%
from the first quarter of 2009.
of $127.6 million, a 62% increase over the prior year first six
months.
million, respectively, over the prior year first six months.
Stifel Bank Segment
Stifel Financial Corp. |
||||||||
Stifel Bank & Trust Segment Data & Statistical Information (Unaudited) |
||||||||
($ in thousands) |
||||||||
Three Months Ended |
Percent Change From |
Six Months Ended |
Change |
|||||
Revenues: |
6/30/2009 |
3/31/2009 |
6/30/2008 |
3/31/2009 |
6/30/2008 |
6/30/2009 |
6/30/2008 |
Percent |
Interest |
$ 3,778 |
$ 3,656 |
$ 3,811 |
3% |
-1% |
$ 7,434 |
$ 7,362 |
1% |
Other |
1,376 |
670 |
862 |
105% |
60% |
2,046 |
1,109 |
84% |
Total revenues |
5,154 |
4,326 |
4,673 |
19% |
10% |
9,480 |
8,471 |
12% |
Less: Interest expense |
1,008 |
686 |
1,436 |
47% |
-30% |
1,694 |
3,152 |
-46% |
Total net revenues |
4,146 |
3,640 |
3,237 |
14% |
28% |
7,786 |
5,319 |
46% |
|
|
|
||||||
Employee compensation and benefits |
621 |
411 |
978 |
51% |
-37% |
1,032 |
1,737 |
-41% |
Other non-interest expenses |
1,854 |
1,455 |
1,837 |
27% |
1% |
3,309 |
2,851 |
16% |
Total non-interest expenses |
2,475 |
1,866 |
2,815 |
33% |
-12% |
4,341 |
4,588 |
-5% |
Income before income taxes |
$ 1,671 |
$ 1,774 |
$ 422 |
-6% |
296% |
$ 3,445 |
$ 731 |
371% |
As Of |
6/30/2009 |
3/31/2009 |
6/30/2008 |
|
|
|
||
Total assets |
$ 532,308 |
$ 521,224 |
$ 301,511 |
|
|
|
||
Total retained loans, net |
$ 181,580 |
$ 182,841 |
$ 168,904 |
|
|
|
||
Total loans held for sale, net |
$ 43,320 |
$ 31,108 |
$ 17,301 |
|
|
|
||
Total deposits |
$ 470,430 |
$ 459,305 |
$ 222,249 |
|
|
|
||
Allowance for loan losses as a % of loans |
1.66% |
1.47% |
1.18% |
|
|
|
||
Total non-performing loans as a % of assets |
0.84% |
0.48% |
0.41% |
|
|
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Total assets increased 36% to $2.3 billion at June 30, 2009 from $1.7 billion at June 30, 2008. Total stockholders' equity increased $237.6 million, or 51%, to $702.7 million at June 30, 2009, principally due to funds from our ATM equity offering, net income, and amortization of stock-based awards.
At June 30, 2009, the Company reported total securities owned and investments at fair value of $645.6 million, which included securities categorized as level 3 of $70.9 million.
Stifel Financial Corp. will hold a conference call Monday, August 10, 2009, at 4:30 p.m. Eastern. This call will be Web cast and slides can be accessed on the Investor Relations portion of the Stifel Financial Corp. website at www.stifel.com, as well as on all sites within Thomson/CCBN's Investor Distribution Network. Questions may be posed to management by participants on the call, and in response, the company may disclose additional material information. To participate in the question and answer portion on the call, please dial 888-676-3684 and request the Stifel Financial Corp. earnings call. The subjects to be covered may also contain forward-looking information.
Stifel Financial Corp. operates 241 offices in 37 states and the District of Columbia through its principal subsidiary, Stifel Nicolaus and Company, Inc., and 3 European offices through Stifel Nicolaus Limited. Stifel Nicolaus provides securities brokerage, investment banking, trading, investment advisory, commercial and retail banking and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Bank & Trust offers a full range of consumer and commercial lending solutions. To learn more about Stifel, please visit the Company's web site at www.stifel.com.
This press release contains certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this press release not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements in this press release are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among other things, the following possibilities: the ability to successfully integrate the acquired companies or to complete the acquisition of the branch offices and financial advisors as part of the our transaction with UBS; a material adverse change in the financial condition; the risk of borrower, depositor and other customer attrition; a change in general business and economic conditions; changes in the interest rate environment, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies or guidelines; changes in legislation and regulation; other economic, competitive, governmental, regulatory, geopolitical, and technological factors affecting the companies' operations, pricing, and services; and other risk factors referred to from time to time in filings made by Stifel with the Securities and Exchange Commission. Forward-looking statements speak only as to the date they are made. Stifel does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. Stifel disclaims any intent or obligation to update these forward-looking statements.
Stifel Financial Corp. 2nd Quarter 2009 Fiscal Year Earnings Conference Call August 10, 2009 |
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 and Company, Inc. and its other subsidiaries (collectively, "SF" or the "Company"). These statements can be identified by the use of the words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect" and similar expressions. In particular, these statements may refer to our goals, intentions and expectations, our business plans and growth strategies, our ability to integrate and manage our acquired businesses, estimates of our risks and future costs and benefits, and forecasted demographic and economic trends relating to our industry. You should not place undue reliance on any forward-looking statements, which speak only as of the date they were made. We will not update these forward-looking statements, even though our situation may change in the future, unless we are obligated to do so under federal securities laws. Actual results may differ materially and reported results should not be considered as an indication of future performance. Factors that could cause actual results to differ are included in the Company's annual and quarterly reports and from time to time in other reports filed by the Company with the Securities and Exchange Commission and include, among other things changes in general economic and business conditions, actions of competitors, regulatory actions, changes in legislation and technology changes. To supplement our financial statements presented in accordance with GAAP, management uses certain non-GAAP measures of financial performance and liquidity. These non-GAAP measures are in addition to results prepared by the Company in accordance with GAAP, and should only be considered together with the Company's GAAP results. |
2nd Quarter 2009 Highlights |
YTD Highlights |
Chairman's Comments |
Income Statement |
Normalized Pro Forma |
Source of Revenues |
Principal Transactions |
Segment Comparison Total net revenues increased 25% despite difficult market conditions in 2Q09. |
YTD Segment Comparison (Excludes Acquisitions) Balanced business model facilitates growth during volatile markets Stable PCG business is augmented by profitable and growing Capital Markets. |
Private Client Group Income Statements Commission & fee growth impacted by market decline Margins were lower due to market conditions, decline of managed money balances, and the opening of new offices and hiring Financial Advisors. |
Capital Markets Income Statements Industry wide slowdown in trading activity offset by market share gains Investment Banking weakness is driven by lack of public market activity |
Capital Markets Revenues Commissions & principal transactions increased 51% during the quarter Advisory business grew in the quarter |
Stifel Bank & Trust Income Statements |
Stifel Bank & Trust Balance Sheet Investment portfolio grew $74 million from 3/31/09 to total $133 million as of 6/30/09 Purchases since quarter-end added an additional $85 million, increasing the portfolio to $219 million The $159 million in purchases represent more than a 300 basis increase in yield over cash alternatives Agency MBS comprise 44% of the portfolio, which represents the largest sector in the portfolio; No other sector comprises more than 16% of the portfolio As of 6/30/09, cash and cash equivalents totaled $157 million Retained loan portfolio declined $1.3 million, or 1%, to total $182 million from 3/31/2009 Mortgage Banking Over $521 million in loans sold into the secondary market over the first six months of 2009, compared to $330 million for all of fiscal 2008 Gross mortgage revenues totaled $7.0 million for the six months ended 6/30/09, compared to $4.4 million for all of fiscal 2008 Only $8.1 million in retained mortgage loan originations in the six months ended 6/30/09 with a weighted average LTV of 47% and weighted average FICO of 786 Credit Quality Allowance as a percentage of gross loans was 1.66%, which represented a 19 basis point increase from 3/31/2009 Trailing 12 month losses as a percentage of average loans was 0.39% Other real estate owned decreased $2.5 million, or 57%, from 3/31/09 due to the sale of a $2.2 million commercial real estate property |
Stifel Financial Balance Sheet Graphs Total Assets, Total Capitalization, Leverage Ratio, Book Value per Share |
Capital Structure |
Level 3 Assets |
Other Financial Data |
Stifel Outlook Unstable conditions in the Private Client market presents opportunity for Stifel to continue to grow organically and through M&A The uncertainty surrounding the largest domestic and European private client platforms impacts thousands of US-based Financial Advisors. Success with UBS signings is testament to the PCG platform Balanced business mix facilitates growth during volatile markets 50% of 2009 revenues generated by PCG and 48% by Capital Markets. Capital Markets turmoil creates a pool of very qualified candidates All segments of Capital Markets continued to build out platform and hire in 2009. Added Convertible capability to the ECM platform in 1Q09 |
Market Turmoil = Opportunity Stifel has one of the fastest growing private wealth management businesses in the industry. Stifel Equity Research is 3rd largest research department in the U.S. and the largest provider of small cap coverage. |
Growth |
Q&A - Questions and Answers |
Q&A - Questions and Answers |