UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
CURRENT REPORT
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Item 2.02 Results of Operations and Financial Condition.
On January 26, 2022, Stifel Financial Corp. (“Stifel” or the “Company”) reported its financial results for the quarter and year ended December 31, 2021. A copy of the press release containing this information is attached as Exhibit 99.1 to this Report on Form 8-K. In addition, a copy of the Company’s Financial Supplement for the quarter and year ended December 31, 2021 is attached as Exhibit 99.2 to this Report on Form 8-K.
On January 26, 2022, at 9:30 a.m. Eastern time, the Company will hold a conference call to discussion its financial results and other related matters. A copy of the presentation for the conference call is attached as Exhibit 99.3 to this Report on Form 8-K.
The exhibits are being furnished pursuant to Item 2.02, and the information contained therein shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.
Item 9.01 Financial Statements and Exhibits.
(d) | Exhibits. |
Exhibit Number |
Description | |
99.1 | Press release dated January 26, 2022. | |
99.2 | Financial Supplement for the quarter and year ended December 31, 2021. | |
99.3 |
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104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
2
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. (Registrant) | ||||||
Date: January 26, 2022 | By: | /s/ James M. Marischen | ||||
Name: | James M. Marischen | |||||
Title: | Chief Financial Officer |
3
Exhibit 99.1
Stifel Reports Record Fourth Quarter and Full Year Results
ST. LOUIS, MO, January 26, 2022 Stifel Financial Corp. (NYSE: SF) today reported record net revenues of $1.3 billion for the three months ended December 31, 2021, compared with $1.1 billion a year ago. Net income available to common shareholders was $252.1 million, or $2.12 per diluted common share, compared with $180.8 million, or $1.55 per diluted common share for the fourth quarter of 2020. Non-GAAP net income available to common shareholders of $265.4 million, or $2.23 per diluted common share for the fourth quarter of 2021.
Record net revenues of $4.7 billion for the year ended December 31, 2021 compared to $3.8 billion a year ago. Net income available to common shareholders of $789.3 million, or $6.66 per diluted common share, compared with $476.2 million, or $4.16 per diluted common share in 2020. Non-GAAP net income available to common shareholders of $839.5 million, or $7.08 per diluted common share in 2021.
Ronald J. Kruszewski, Chairman and Chief Executive Officer, said 2021 was an outstanding year for our firm as we delivered our 26th consecutive year of record net revenue, our fifth straight year of record earnings per share, and we generated a non-GAAP return on tangible common equity of 31% for the year. Each of our operating segments posted record results as the growth of our product offering has made us increasingly relevant to both wealth management and institutional clients. As I look forward, the outlook for Stifel remains as strong as Ive seen in my 25 year tenure as CEO.
Full Year Highlights
| 26th consecutive year of record net revenues of $4.7 billion, increased 26% over 2020. |
| Record non-GAAP net income available to common shareholders of $7.08, up 55% over 2021. |
| Record investment banking revenues, up 64% over 2020. |
| Recruited 121 financial advisors during the year, including 114 employee advisors and 7 independent advisors. |
| Bank loans up $5.3 billion, or 46%, from prior year. |
| Record non-GAAP pre-tax margin of 24% driven by revenue growth and expense discipline. |
| Return on average tangible common equity (ROTCE) (5) was 31%. |
Fourth Quarter Highlights
| Record quarterly net revenues, up 23% over the year-ago quarter. |
| Record non-GAAP net income available to common shareholders of $2.23, up 34% over the year ago quarter. |
| Record investment banking revenues, up 41% the year-ago quarter. |
| Recruited 34 financial advisors during the quarter, including 27 employee advisors and 7 independent advisors. |
| Bank loans up $3.2 billion, or 23%, sequentially. |
| Record non-GAAP pre-tax margin of 26%. |
| Annualized ROTCE (5) of 37%. |
Other Highlights
| Record client assets, up 22% from the prior year. |
| Closed the Vining Sparks acquisition during the fourth quarter. |
| Board of Directors authorized a 100% increase in common stock dividend starting in the first quarter of 2022. |
Financial Summary (Unaudited) | ||||||||||||||||
($ in 000s) | 4Q 2021 | 4Q 2020 | FY 2021 | FY 2020 | ||||||||||||
GAAP Financial Highlights: |
| |||||||||||||||
Net revenues |
$ | 1,304,225 | $ | 1,059,910 | $ | 4,737,088 | $ | 3,752,061 | ||||||||
Net income (1) |
$ | 252,070 | $ | 180,792 | $ | 789,271 | $ | 476,211 | ||||||||
Diluted EPS (1) |
$ | 2.12 | $ | 1.55 | $ | 6.66 | $ | 4.16 | ||||||||
Comp. ratio |
58.1 | % | 58.6 | % | 59.5 | % | 60.7 | % | ||||||||
Non-comp. ratio |
17.5 | % | 19.3 | % | 18.0 | % | 21.9 | % | ||||||||
Pre-tax margin |
24.4 | % | 22.1 | % | 22.5 | % | 17.4 | % | ||||||||
Non-GAAP Financial Highlights: |
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Net revenues |
$ | 1,304,225 | $ | 1,059,883 | $ | 4,737,241 | $ | 3,752,213 | ||||||||
Net income (1) (2) |
$ | 265,388 | $ | 195,054 | $ | 839,533 | $ | 522,847 | ||||||||
Diluted EPS (1) (2) |
$ | 2.23 | $ | 1.67 | $ | 7.08 | $ | 4.56 | ||||||||
Comp. ratio (2) |
57.5 | % | 57.9 | % | 59.0 | % | 59.9 | % | ||||||||
Non-comp. ratio (2) |
16.8 | % | 18.3 | % | 17.1 | % | 21.1 | % | ||||||||
Pre-tax margin (3) |
25.7 | % | 23.8 | % | 23.9 | % | 19.0 | % | ||||||||
ROCE (4) |
25.0 | % | 21.6 | % | 21.0 | % | 15.4 | % | ||||||||
ROTCE (5) |
36.6 | % | 33.3 | % | 30.9 | % | 24.7 | % | ||||||||
Global Wealth Management (assets and loans in millions) |
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Net revenues |
$ | 674,242 | $ | 575,252 | $ | 2,598,837 | $ | 2,190,826 | ||||||||
Pre-tax net income |
$ | 232,298 | $ | 196,462 | $ | 914,953 | $ | 725,884 | ||||||||
Total client assets |
$ | 435,978 | $ | 357,429 | ||||||||||||
Fee-based client assets |
$ | 162,428 | $ | 129,372 | ||||||||||||
Bank loans (6) |
$ | 16,836 | $ | 11,558 | ||||||||||||
Institutional Group |
| |||||||||||||||
Net revenues |
$ | 633,263 | $ | 489,448 | $ | 2,152,439 | $ | 1,583,147 | ||||||||
Equity |
$ | 442,865 | $ | 325,357 | $ | 1,453,959 | $ | 930,982 | ||||||||
Fixed Income |
$ | 190,398 | $ | 164,091 | $ | 698,480 | $ | 652,165 | ||||||||
Pre-tax net income |
$ | 175,163 | $ | 123,655 | $ | 558,937 | $ | 325,285 |
Media Contact: Neil Shapiro (212) 271-3447 | Investor Contact: Joel Jeffrey (212) 271- 3610 | www.stifel.com/investor-relations
Global Wealth Management
Fourth Quarter Results
Global Wealth Management reported record net revenues of $674.2 million for the three months ended December 31, 2021 compared with $575.3 million during the fourth quarter of 2020. Pre-tax net income was $232.3 million compared with $196.5 million in the fourth quarter of 2020.
Highlights
| Recruited 34 financial advisors during the quarter, including 27 employee advisors, of which 16 were experienced advisors, and 7 independent advisors, with total trailing 12 month production of $16 million. |
| Record client assets of $436.0 billion, up 22% over the year-ago quarter. |
| Record fee-based client assets of $162.4 billion, up 26% over the year-ago quarter. |
| Bank loans of $16.8 billion, up 23% over the third quarter of 2021. |
Net revenues increased 17% from a year ago:
| Asset management revenues increased 28% over the year-ago quarter reflecting higher asset values and strong fee-based asset flows. |
| Transactional revenues increased 5% over the year-ago quarter reflecting strong client activity during the quarter. |
| Net interest income increased 26% over the year-ago quarter driven by higher bank lending. |
Total Expenses:
| Compensation expense as percent of net revenues decreased to 51.8% primarily as a result of a change in the revenue mix (higher net interest income) from the year ago quarter. |
| Provision for credit losses was impacted by provisions related to the growth in the loan portfolio partially offset by reserve reductions as a result of an improved macroeconomic environment. |
| Non-compensation operating expenses as a percent of net revenues increased to 13.7% primarily as a result of higher allocable expenses during the fourth quarter of 2021. |
Summary Results of Operations | ||||||||
($ in 000s) | 4Q 2021 | 4Q 2020 | ||||||
Net revenues |
$ | 674,242 | $ | 575,252 | ||||
Asset management |
318,612 | 249,907 | ||||||
Transactional revenues |
194,927 | 185,719 | ||||||
Net interest income |
138,891 | 110,521 | ||||||
Investment banking |
11,183 | 9,562 | ||||||
Other income |
10,629 | 19,543 | ||||||
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Total expenses |
$ | 441,944 | $ | 378,790 | ||||
Compensation expense |
349,428 | 303,961 | ||||||
Provision for credit losses |
4,062 | | ||||||
Non-comp. opex |
88,454 | 74,829 | ||||||
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Pre-tax net income |
$ | 232,298 | $ | 196,462 | ||||
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Compensation ratio |
51.8 | % | 52.8 | % | ||||
Non-compensation ratio |
13.7 | % | 13.0 | % | ||||
Pre-tax margin |
34.5 | % | 34.2 | % |
Stifel Financial Corp. | Page 2
Institutional Group
Fourth Quarter Results
Institutional Group reported record net revenues of $633.3 million for the three months ended December 31, 2021 compared with $489.4 million during the fourth quarter of 2020. Pre-tax net income was $175.2 million compared with $123.7 million in the fourth quarter of 2020.
Highlights
| Investment banking pipeline at record levels. |
| Pre-tax margin of 28%, up from 25% in the year-ago quarter. |
Investment banking revenues increased 42% from a year ago:
| Advisory revenues of $310.7 million increased 79% over the year-ago quarter on higher completed advisory transactions and increased private placement fees. |
| Equity capital raising revenues decreased 13% from the year-ago quarter due to lower volumes. |
| Fixed income capital raising revenues increased 28% over the year-ago quarter driven by an increase in public finance, as well as an increase in our corporate debt issuance business. |
Equity transactional revenues decreased 5% from a year ago:
| Equity transactional revenues declined from the year-ago quarter due to declines in cash equities and lower trading gains. |
Fixed income transactional revenues increased 8% from a year ago:
| Fixed income transactional revenues increased from the year-ago quarter driven by the Vining Sparks acquisition, which closed on November 1, 2021, and an increase in trading gains. |
Total Expenses:
| Compensation expense as percent of net revenues remained consistent with the year ago quarter. |
| Non-compensation operating expenses as a percent of net revenues decreased to 14.3% as a result of expense discipline and revenue growth. |
Summary Results of Operations | ||||||||
($ in 000s) | 4Q 2021 | 4Q 2020 | ||||||
Net revenues |
$ | 633,263 | $ | 489,448 | ||||
Investment banking |
466,188 | 328,109 | ||||||
Advisory |
310,718 | 173,399 | ||||||
Equity capital raising |
90,595 | 104,097 | ||||||
Fixed income capital raising |
64,875 | 50,613 | ||||||
Equity transactional |
65,797 | 69,201 | ||||||
Fixed income transactional |
94,926 | 87,664 | ||||||
Other |
6,352 | 4,474 | ||||||
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Total expenses |
$ | 458,100 | $ | 365,793 | ||||
Compensation expense |
367,439 | 284,607 | ||||||
Non-comp. opex. |
90,661 | 81,186 | ||||||
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Pre-tax net income |
$ | 175,163 | $ | 123,655 | ||||
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Compensation ratio |
58.0 | % | 58.1 | % | ||||
Non-compensation ratio |
14.3 | % | 16.6 | % | ||||
Pre-tax margin |
27.7 | % | 25.3 | % |
Stifel Financial Corp. | Page 3
Global Wealth Management
Full Year Results
Global Wealth Management reported record net revenues of $2.6 billion for the year ended December 31, 2021 compared with $2.2 billion in 2020. Pre-tax net income was $915.0 million compared with $725.9 million in 2020.
Highlights
| Recruited 121 financial advisors during the year with total trailing 12 month production of $77 million. |
| Pre-tax margin of 35%, up from 33% in 2020. |
Net revenues increased 19% from a year ago:
| Asset management revenues increased 32% from a year ago reflecting higher asset values and strong fee-based asset flows. |
| Transactional revenues increased 13% from a year ago reflecting strong client activity during the year. |
| Net interest income increased 7% from a year ago driven by higher bank lending. |
Total Expenses:
| Compensation expense as percent of net revenues increased to 52.7% primarily as a result of higher compensable revenues. |
| Provision for credit losses decreased from a year ago as a result of reserve reductions driven by an improved macroeconomic environment and a release related to loans sold at a premium during 2021 partially offset by provisions related to the growth of the loan portfolio during the year. |
| Non-compensation operating expenses as a percent of net revenues decreased to 12.1% primarily as a result of expense discipline and higher revenues. |
Summary Results of Operations | ||||||||
($ in 000s) | FY 2021 | FY 2020 | ||||||
Net revenues |
$ | 2,598,837 | $ | 2,190,826 | ||||
Asset management |
1,206,406 | 917,353 | ||||||
Transactional revenues |
774,965 | 687,348 | ||||||
Net interest income |
511,693 | 478,948 | ||||||
Investment banking |
48,210 | 36,024 | ||||||
Other income |
57,563 | 71,153 | ||||||
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Total expenses |
$ | 1,683,884 | $ | 1,464,942 | ||||
Compensation expense |
1,370,308 | 1,138,525 | ||||||
Provision for credit losses |
(11,502 | ) | 33,542 | |||||
Non-comp. opex |
325,078 | 292,875 | ||||||
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Pre-tax net income |
$ | 914,953 | $ | 725,884 | ||||
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Compensation ratio |
52.7 | % | 52.0 | % | ||||
Non-compensation ratio |
12.1 | % | 14.9 | % | ||||
Pre-tax margin |
35.2 | % | 33.1 | % |
Stifel Financial Corp. | Page 4
Institutional Group
Full Year Results
Institutional Group reported record net revenues of $2.2 billion for the year ended December 31, 2021 compared with $1.6 billion in 2020. Pre-tax net income was $558.9 million compared with $325.3 million in 2020.
Highlights
| Pre-tax margin of 26%, up from 21% in 2020. |
Investment banking revenues increased 66% from a year ago:
| Advisory revenues of $856.1 million increased 100% from a year ago on higher completed advisory transactions and increased private placement fees. The growth in advisory revenue underscores the diversity of the business and the investments made across multiple products and verticals. |
| Equity capital raising revenues increased 42% from a year ago driven by higher volumes. |
| Fixed income capital raising revenues increased 25% from a year ago driven by an increase in public finance, as well as an increase in our corporate debt issuance business. |
Equity transactional revenues decreased 1% from a year ago:
| Equity transactional revenues declined from a year ago due to declines in cash equities driven by lower volatility and volumes partially offset by an increase in trading gains. |
Fixed income transactional revenues decreased 11% from a year ago:
| Fixed income transactional revenues decreased from a year ago due to due to lower volumes as well as tighter credit spreads, partially offset by revenues from the Vining Sparks acquisition. |
Total Expenses:
| Compensation expense as percent of net revenues decreased to 58.1% as a result of lower compensable revenues. |
| Non-compensation operating expenses as a percent of net revenues decreased to 15.9% as a result of expense discipline and revenue growth. |
Summary Results of Operations | ||||||||
($ in 000s) | FY 2021 | FY 2020 | ||||||
Net revenues |
$ | 2,152,439 | $ | 1,583,147 | ||||
Investment banking |
1,517,171 | 916,284 | ||||||
Advisory |
856,083 | 428,132 | ||||||
Equity capital raising |
434,238 | 306,031 | ||||||
Fixed income capital raising |
226,850 | 182,121 | ||||||
Equity transactional |
254,684 | 256,793 | ||||||
Fixed income transactional |
361,014 | 404,789 | ||||||
Other |
19,570 | 5,281 | ||||||
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Total expenses |
$ | 1,593,502 | $ | 1,257,862 | ||||
Compensation expense |
1,251,595 | 942,769 | ||||||
Non-comp. opex. |
341,907 | 315,093 | ||||||
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Pre-tax net income |
$ | 558,937 | $ | 325,285 | ||||
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Compensation ratio |
58.1 | % | 59.6 | % | ||||
Non-compensation ratio |
15.9 | % | 19.9 | % | ||||
Pre-tax margin |
26.0 | % | 20.5 | % |
Stifel Financial Corp. | Page 5
Other Matters
Highlights
| Total assets increased $7.4 billion, or 28%, over the year-ago quarter and 11% sequentially. |
| Tangible book value per common share of $28.26 (7), up 20% from prior year. |
| The Board of Directors approved a 100% increase in the quarterly dividend to $0.30 per common share starting in the first quarter of 2022. |
| The Company repurchased $86.3 million of its outstanding common stock during the fourth quarter. During 2021, the Company repurchased $172.7 million of its outstanding common stock. |
| The Board of Directors declared a $0.15 quarterly dividend per share payable on December 15, 2021 to common shareholders of record on December 1, 2021. |
| The Board of Directors declared a quarterly dividend on the outstanding shares of the Companys preferred stock payable on December 15, 2021 to shareholders of record on December 1, 2021. |
4Q 2021 | 4Q 2020 | FY 2021 | FY 2020 | |||||||||||||
Common stock repurchases |
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Repurchases ($ in 000s) |
$ | 86,295 | $ | 1,744 | $ | 172,741 | $ | 58,261 | ||||||||
Number of shares (000s) |
1,168 | 38 | 2,484 | 1,747 | ||||||||||||
Average price |
$ | 73.86 | $ | 45.37 | $ | 69.53 | $ | 33.35 | ||||||||
Period end shares (000s) |
104,499 | 103,149 | 104,499 | 103,149 | ||||||||||||
Effective tax rate |
18.0 | % | 19.7 | % | 22.7 | % | 22.7 | % | ||||||||
Stifel Financial Corp. Capital (8) |
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Tier 1 common capital ratio |
15.2 | % | 16.5 | % | ||||||||||||
Tier 1 risk based capital ratio |
18.7 | % | 20.2 | % | ||||||||||||
Tier 1 leverage capital ratio |
11.7 | % | 11.9 | % | ||||||||||||
Tier 1 capital ($MM) |
$ | 3,624 | $ | 2,926 | ||||||||||||
Risk weighted assets ($MM) |
$ | 19,366 | $ | 14,490 | ||||||||||||
Average assets ($MM) |
$ | 30,930 | $ | 24,605 | ||||||||||||
Quarter end assets ($MM) |
$ | 34,050 | $ | 26,604 | ||||||||||||
Agency |
Rating | Outlook | ||||||||||||||
Fitch Ratings |
BBB | Positive | ||||||||||||||
S&P Global Ratings |
BBB- | Positive |
Stifel Financial Corp. | Page 6
Conference Call Information
Stifel Financial Corp. will host its fourth quarter 2021 financial results conference call on Wednesday, January 26, 2022, at 9:30 a.m. Eastern Time. The conference call may include forward-looking statements.
All interested parties are invited to listen to Stifels Chairman and CEO, Ronald J. Kruszewski, by dialing (877) 876-9938 and referencing conference ID 4799655. A live audio webcast of the call, as well as a presentation highlighting the Companys results, will be available through the Companys web site, www.stifel.com. For those who cannot listen to the live broadcast, a replay of the broadcast will be available through the above-referenced web site beginning approximately one hour following the completion of the call.
Company Information
Stifel Financial Corp. (NYSE: SF) is a financial services holding company headquartered in St. Louis, Missouri, that conducts its banking, securities, and financial services business through several wholly owned subsidiaries. Stifels broker-dealer clients are served in the United States through Stifel, Nicolaus & Company, Incorporated, including its Eaton Partners business division; Keefe, Bruyette & Woods, Inc.; Miller Buckfire & Co., LLC; and Stifel Independent Advisors, LLC. The Companys broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Bank and Stifel Bank & Trust offer a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. and Stifel Trust Company Delaware, N.A. offer trust and related services. To learn more about Stifel, please visit the Companys website at www.stifel.com. For global disclosures, please visit www.stifel.com/investor-relations/press-releases.
A financial summary follows. Financial, statistical and business-related information, as well as information regarding business and segment trends, is included in the financial supplement. Both the earnings release and the financial supplement are available online in the Investor Relations section at www.stifel.com/investor-relations.
The information provided herein and in the financial supplement, including information provided on the Companys earnings conference calls, may include certain non-GAAP financial measures. The definition of such measures or reconciliation of such measures to the comparable U.S. GAAP figures are included in this earnings release and the financial supplement, both of which are available online in the Investor Relations section at www.stifel.com/investor-relations.
Cautionary Note Regarding Forward-Looking Statements
This earnings 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 earnings release not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements in this earnings 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 acquired companies or the branch offices and financial advisors; a material adverse change in 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 Financial Corp. with the Securities and Exchange Commission. For information about the risks and important factors that could affect the Companys future results, financial condition and liquidity, see Risk Factors in Part I, Item 1A of the Companys Annual Report on Form 10-K for the year ended December 31, 2020. Forward-looking statements speak only as to the date they are made. The Company disclaims any intent or obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
Statements about the effects of the COVID-19 pandemic on the Companys business, results, financial position and liquidity may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected.
Stifel Financial Corp. | Page 7
Summary Results of Operations (Unaudited)
Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
($ in 000s, except per share amounts) | 12/31/2021 | 12/31/2020 | % Change |
9/30/2021 | % Change |
12/31/2021 | 12/31/2020 | % Change |
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Revenues: |
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Commissions |
$ | 211,068 | $ | 199,847 | 5.6 | $ | 189,239 | 11.5 | $ | 809,500 | $ | 760,627 | 6.4 | |||||||||||||||||||
Principal transactions |
144,584 | 142,737 | 1.3 | 118,977 | 21.5 | 581,164 | 588,303 | (1.2 | ) | |||||||||||||||||||||||
Investment banking |
477,371 | 337,671 | 41.4 | 372,279 | 28.2 | 1,565,381 | 952,308 | 64.4 | ||||||||||||||||||||||||
Asset management |
318,638 | 249,928 | 27.5 | 313,862 | 1.5 | 1,206,516 | 917,424 | 31.5 | ||||||||||||||||||||||||
Other income |
14,496 | 24,366 | (40.5 | ) | 18,760 | (22.7 | ) | 72,125 | 75,345 | (4.3 | ) | |||||||||||||||||||||
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Operating revenues |
1,166,157 | 954,549 | 22.2 | 1,013,117 | 15.1 | 4,234,686 | 3,294,007 | 28.6 | ||||||||||||||||||||||||
Interest revenue |
145,425 | 119,876 | 21.3 | 141,844 | 2.5 | 548,400 | 523,832 | 4.7 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total revenues |
1,311,582 | 1,074,425 | 22.1 | 1,154,961 | 13.6 | 4,783,086 | 3,817,839 | 25.3 | ||||||||||||||||||||||||
Interest expense |
7,357 | 14,515 | (49.3 | ) | 10,023 | (26.6 | ) | 45,998 | 65,778 | (30.1 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net revenues |
1,304,225 | 1,059,910 | 23.1 | 1,144,938 | 13.9 | 4,737,088 | 3,752,061 | 26.3 | ||||||||||||||||||||||||
Non-interest expenses: |
||||||||||||||||||||||||||||||||
Compensation and benefits |
757,948 | 621,344 | 22.0 | 672,385 | 12.7 | 2,820,301 | 2,279,335 | 23.7 | ||||||||||||||||||||||||
Non-compensation operating expenses |
227,615 | 203,865 | 11.6 | 216,051 | 5.4 | 849,706 | 821,566 | 3.4 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total non-interest expenses |
985,563 | 825,209 | 19.4 | 888,436 | 10.9 | 3,670,007 | 3,100,901 | 18.4 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Income before income taxes |
318,662 | 234,701 | 35.8 | 256,502 | 24.2 | 1,067,081 | 651,160 | 63.9 | ||||||||||||||||||||||||
Provision for income taxes |
57,272 | 46,232 | 23.9 | 64,126 | (10.7 | ) | 242,223 | 147,688 | 64.0 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income |
261,390 | 188,469 | 38.7 | 192,376 | 35.9 | 824,858 | 503,472 | 63.8 | ||||||||||||||||||||||||
Preferred dividends |
9,320 | 7,677 | 21.4 | 9,689 | (3.8 | ) | 35,587 | 27,261 | 30.5 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income available to common shareholders |
$ | 252,070 | $ | 180,792 | 39.4 | $ | 182,687 | 38.0 | $ | 789,271 | $ | 476,211 | 65.7 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Earnings per common share: |
||||||||||||||||||||||||||||||||
Basic |
$ | 2.35 | $ | 1.70 | 38.2 | $ | 1.70 | 38.2 | $ | 7.34 | $ | 4.49 | 63.5 | |||||||||||||||||||
Diluted |
$ | 2.12 | $ | 1.55 | 36.8 | $ | 1.54 | 37.7 | $ | 6.66 | $ | 4.16 | 60.1 | |||||||||||||||||||
Cash dividends declared per common share |
$ | 0.15 | $ | 0.11 | 36.4 | $ | 0.15 | | $ | 0.60 | $ | 0.45 | 33.3 | |||||||||||||||||||
Weighted average number of common shares outstanding: |
||||||||||||||||||||||||||||||||
Basic |
107,185 | 106,041 | 1.1 | 107,379 | (0.2 | ) | 107,536 | 106,174 | 1.3 | |||||||||||||||||||||||
Diluted |
118,959 | 116,828 | 1.8 | 118,475 | 0.4 | 118,530 | 114,573 | 3.5 |
Stifel Financial Corp. | Page 8
Non-GAAP Financial Measures (9)
Three Months Ended | Year Ended | |||||||||||||||
($ in 000s, except per share amounts) | 12/31/2021 | 12/31/2020 | 12/31/2021 | 12/31/2020 | ||||||||||||
GAAP net income |
$ | 261,390 | $ | 188,469 | $ | 824,858 | $ | 503,472 | ||||||||
Preferred dividend |
9,320 | 7,677 | 35,587 | 27,261 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income available to common shareholders |
252,070 | 180,792 | 789,271 | 476,211 | ||||||||||||
Non-GAAP adjustments: |
||||||||||||||||
Merger-related (10) |
16,234 | 17,706 | 65,314 | 60,464 | ||||||||||||
Provision for income taxes (11) |
(2,916 | ) | (3,444 | ) | (15,052 | ) | (13,828 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total non-GAAP adjustments |
13,318 | 14,262 | 50,262 | 46,636 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP net income available to common shareholders |
$ | 265,388 | $ | 195,054 | $ | 839,533 | $ | 522,847 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average diluted shares outstanding |
118,959 | 116,828 | 118,530 | 114,573 | ||||||||||||
GAAP earnings per diluted common share |
$ | 2.20 | $ | 1.61 | $ | 6.96 | $ | 4.39 | ||||||||
Non-GAAP adjustments |
0.11 | 0.13 | 0.42 | 0.41 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP earnings per diluted common share |
$ | 2.31 | $ | 1.74 | $ | 7.38 | $ | 4.80 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
GAAP earnings per diluted common share available to common shareholders |
$ | 2.12 | $ | 1.55 | $ | 6.66 | $ | 4.16 | ||||||||
Non-GAAP adjustments |
0.11 | 0.12 | 0.42 | 0.40 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP earnings per diluted common share available to common shareholders |
$ | 2.23 | $ | 1.67 | $ | 7.08 | $ | 4.56 | ||||||||
|
|
|
|
|
|
|
|
GAAP to Non-GAAP Reconciliation (9)
Three Months Ended | Year Ended | |||||||||||||||
($ in 000s) | 12/31/2021 | 12/31/2020 | 12/31/2021 | 12/31/2020 | ||||||||||||
GAAP compensation and benefits |
$ | 757,948 | $ | 621,344 | $ | 2,820,301 | $ | 2,279,335 | ||||||||
As a percentage of net revenues |
58.1 | % | 58.6 | % | 59.5 | % | 60.7 | % | ||||||||
Non-GAAP adjustments: |
||||||||||||||||
Merger-related (10) |
(8,019 | ) | (7,352 | ) | (26,092 | ) | (30,259 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP compensation and benefits |
$ | 749,929 | $ | 613,992 | $ | 2,794,209 | $ | 2,249,076 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
As a percentage of non-GAAP net revenues |
57.5 | % | 57.9 | % | 59.0 | % | 59.9 | % | ||||||||
GAAP non-compensation expenses |
$ | 227,615 | $ | 203,865 | $ | 849,706 | $ | 821,566 | ||||||||
As a percentage of net revenues |
17.5 | % | 19.3 | % | 18.0 | % | 21.9 | % | ||||||||
Non-GAAP adjustments: |
||||||||||||||||
Merger-related (10) |
(8,215 | ) | (10,381 | ) | (39,069 | ) | (30,053 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP non-compensation expenses |
$ | 219,400 | $ | 193,484 | $ | 810,637 | $ | 791,513 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
As a percentage of non-GAAP net revenues |
16.8 | % | 18.3 | % | 17.1 | % | 21.1 | % | ||||||||
Total merger-related expenses |
$ | 16,234 | $ | 17,706 | $ | 65,314 | $ | 60,464 |
Stifel Financial Corp. | Page 9
Footnotes
(1) | Represents available to common shareholders. |
(2) | Reconciliations of the Companys GAAP results to these non-GAAP measures are discussed within and under Non-GAAP Financial Measures and GAAP to Non-GAAP Reconciliation. |
(3) | Non-GAAP pre-tax margin is calculated by adding total merger-related expenses (non-GAAP adjustments) and dividing it by non-GAAP net revenues. See Non-GAAP Financial Measures and GAAP to Non-GAAP Reconciliation. |
(4) | 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. |
(5) | Return on average tangible common equity (ROTCE), a non-GAAP financial measure, 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 $56.3 million and $50.7 million as of December 31, 2021 and 2020, respectively. |
(6) | Includes loans held for sale. |
(7) | Tangible book value per common share represents shareholders equity (excluding preferred stock) divided by period end common shares outstanding. Tangible common shareholders equity equals total common shareholders equity less goodwill and identifiable intangible assets and the deferred taxes on goodwill and intangible assets. |
(8) | Capital ratios are estimates as of the date of the earnings release, January 26, 2022. |
(9) | 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 Companys 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. |
(10) | 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 Companys on-going business. |
(11) | Primarily represents the Companys effective tax rate for the period applied to the non-GAAP adjustments. |
Stifel Financial Corp. | Page 10
Exhibit 99.2
Fourth Quarter 2021 Earnings Results
Quarterly Financial Supplement | Page | |||
Consolidated Financial Highlights |
2 | |||
GAAP Consolidated Results of Operations |
3 | |||
Non-GAAP Consolidated Results of Operations |
4 | |||
Consolidated Financial Summary |
5 | |||
Consolidated Financial Information 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 | |||
Loans and Lending Commitments - Allowance for Credit Losses |
12 | |||
Consolidated Net Interest Income |
13 | |||
Stifel Bancorp Net Interest Income |
14 | |||
GAAP to Core Reconciliation |
15 | |||
Footnotes |
16 | |||
Disclaimer and Legal Notice |
17 |
Stifel Financial Corp. Quarterly Financial Supplement | Fourth Quarter 2021 Earnings Release | Page 1 of 17 |
Consolidated Financial Highlights
Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
(Unaudited, $ in 000s except per share information) |
12/31/2021 | 12/31/2020 | % Change | 9/30/2021 | % Change | 12/31/2021 | 12/31/2020 | % Change | ||||||||||||||||||||||||
Net revenues |
$ | 1,304,225 | $ | 1,059,910 | 23.1 | % | $ | 1,144,938 | 13.9 | % | $ | 4,737,088 | $ | 3,752,061 | 26.3 | % | ||||||||||||||||
Net income |
$ | 261,390 | $ | 188,469 | 38.7 | % | $ | 192,376 | 35.9 | % | $ | 824,858 | $ | 503,472 | 63.8 | % | ||||||||||||||||
Preferred dividends |
9,320 | 7,677 | 21.4 | % | 9,689 | (3.8 | %) | 35,587 | 27,261 | 30.5 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income available to common shareholders |
$ | 252,070 | $ | 180,792 | 39.4 | % | $ | 182,687 | 38.0 | % | $ | 789,271 | $ | 476,211 | 65.7 | % | ||||||||||||||||
Earnings per diluted common share |
$ | 2.20 | $ | 1.61 | 36.6 | % | $ | 1.62 | 35.8 | % | $ | 6.96 | $ | 4.39 | 58.5 | % | ||||||||||||||||
Earnings per diluted common share available to common shareholders |
$ | 2.12 | $ | 1.55 | 36.8 | % | $ | 1.54 | 37.7 | % | $ | 6.66 | $ | 4.16 | 60.1 | % | ||||||||||||||||
Non-GAAP financial summary (1): |
||||||||||||||||||||||||||||||||
Net revenues |
$ | 1,304,225 | $ | 1,059,883 | 23.1 | % | $ | 1,144,938 | 13.9 | % | $ | 4,737,241 | $ | 3,752,213 | 26.3 | % | ||||||||||||||||
Net income |
$ | 274,708 | $ | 202,731 | 35.5 | % | $ | 205,342 | 33.8 | % | $ | 875,120 | $ | 550,108 | 59.1 | % | ||||||||||||||||
Preferred dividends |
9,320 | 7,677 | 21.4 | % | 9,689 | (3.8 | %) | 35,587 | 27,261 | 30.5 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income available to common shareholders |
$ | 265,388 | 195,054 | 36.1 | % | 195,653 | 35.6 | % | 839,533 | 522,847 | 60.6 | % | ||||||||||||||||||||
Earnings per diluted common share |
$ | 2.31 | $ | 1.74 | 32.8 | % | $ | 1.73 | 33.5 | % | $ | 7.38 | $ | 4.80 | 53.8 | % | ||||||||||||||||
Earnings per diluted common share available to common shareholders |
$ | 2.23 | $ | 1.67 | 33.5 | % | $ | 1.65 | 35.2 | % | $ | 7.08 | $ | 4.56 | 55.3 | % | ||||||||||||||||
Weighted average number of common shares outstanding |
||||||||||||||||||||||||||||||||
Basic |
107,185 | 106,041 | 1.1 | % | 107,379 | (0.2 | %) | 107,536 | 106,174 | 1.3 | % | |||||||||||||||||||||
Diluted |
118,959 | 116,828 | 1.8 | % | 118,475 | 0.4 | % | 118,530 | 114,573 | 3.5 | % | |||||||||||||||||||||
Period end common shares outstanding |
104,499 | 103,149 | 1.3 | % | 104,263 | 0.2 | % | 104,499 | 103,149 | 1.3 | % | |||||||||||||||||||||
Cash dividends declared per common share |
$ | 0.15 | $ | 0.11 | 36.4 | % | $ | 0.15 | 0.0 | % | $ | 0.60 | $ | 0.45 | 33.3 | % |
Stifel Financial Corp. Quarterly Financial Supplement | Fourth Quarter 2021 Earnings Release | Page 2 of 17 |
GAAP Results of Operations (Unaudited)
Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
($ in 000s except per share information) | 12/31/2021 | 12/31/2020 | % Change | 9/30/2021 | % Change | 12/31/2021 | 12/31/2020 | % Change | ||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||||||||||
Commissions |
$ | 211,068 | $ | 199,847 | 5.6 | % | $ | 189,239 | 11.5 | % | $ | 809,500 | $ | 760,627 | 6.4 | % | ||||||||||||||||
Principal transactions |
144,584 | 142,737 | 1.3 | % | 118,977 | 21.5 | % | 581,164 | 588,303 | (1.2 | %) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Transactional revenues |
355,652 | 342,584 | 3.8 | % | 308,216 | 15.4 | % | 1,390,664 | 1,348,930 | 3.1 | % | |||||||||||||||||||||
Capital raising |
166,591 | 164,276 | 1.4 | % | 164,061 | 1.5 | % | 709,236 | 524,161 | 35.3 | % | |||||||||||||||||||||
Advisory |
310,780 | 173,395 | 79.2 | % | 208,218 | 49.3 | % | 856,145 | 428,147 | 100.0 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Investment banking |
477,371 | 337,671 | 41.4 | % | 372,279 | 28.2 | % | 1,565,381 | 952,308 | 64.4 | % | |||||||||||||||||||||
Asset management |
318,638 | 249,928 | 27.5 | % | 313,862 | 1.5 | % | 1,206,516 | 917,424 | 31.5 | % | |||||||||||||||||||||
Other income |
14,496 | 24,366 | (40.5 | %) | 18,760 | (22.7 | %) | 72,125 | 75,345 | (4.3 | %) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating revenues |
1,166,157 | 954,549 | 22.2 | % | 1,013,117 | 15.1 | % | 4,234,686 | 3,294,007 | 28.6 | % | |||||||||||||||||||||
Interest revenue |
145,425 | 119,876 | 21.3 | % | 141,844 | 2.5 | % | 548,400 | 523,832 | 4.7 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total revenues |
1,311,582 | 1,074,425 | 22.1 | % | 1,154,961 | 13.6 | % | 4,783,086 | 3,817,839 | 25.3 | % | |||||||||||||||||||||
Interest expense |
7,357 | 14,515 | (49.3 | %) | 10,023 | (26.6 | %) | 45,998 | 65,778 | (30.1 | %) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net revenues |
1,304,225 | 1,059,910 | 23.1 | % | 1,144,938 | 13.9 | % | 4,737,088 | 3,752,061 | 26.3 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Non-interest expenses: |
||||||||||||||||||||||||||||||||
Compensation and benefits |
757,948 | 621,344 | 22.0 | % | 672,385 | 12.7 | % | 2,820,301 | 2,279,335 | 23.7 | % | |||||||||||||||||||||
Occupancy and equipment rental |
75,080 | 73,729 | 1.8 | % | 72,160 | 4.0 | % | 290,243 | 274,664 | 5.7 | % | |||||||||||||||||||||
Communication and office supplies |
41,925 | 40,443 | 3.7 | % | 40,432 | 3.7 | % | 165,490 | 164,736 | 0.5 | % | |||||||||||||||||||||
Commissions and floor brokerage |
15,257 | 12,687 | 20.3 | % | 14,744 | 3.5 | % | 59,681 | 55,960 | 6.6 | % | |||||||||||||||||||||
Provision for credit losses |
4,062 | | nm | (660 | ) | nm | (11,502 | ) | 33,925 | (133.9 | %) | |||||||||||||||||||||
Other operating expenses |
91,291 | 77,006 | 18.6 | % | 89,375 | 2.1 | % | 345,794 | 292,281 | 18.3 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total non-interest expenses |
985,563 | 825,209 | 19.4 | % | 888,436 | 10.9 | % | 3,670,007 | 3,100,901 | 18.4 | % | |||||||||||||||||||||
Income before income taxes |
318,662 | 234,701 | 35.8 | % | 256,502 | 24.2 | % | 1,067,081 | 651,160 | 63.9 | % | |||||||||||||||||||||
Provision for income taxes |
57,272 | 46,232 | 23.9 | % | 64,126 | (10.7 | %) | 242,223 | 147,688 | 64.0 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income |
261,390 | 188,469 | 38.7 | % | 192,376 | 35.9 | % | 824,858 | 503,472 | 63.8 | % | |||||||||||||||||||||
Preferred dividends |
9,320 | 7,677 | 21.4 | % | 9,689 | (3.8 | %) | 35,587 | 27,261 | 30.5 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income available to common shareholders |
$ | 252,070 | $ | 180,792 | 39.4 | % | $ | 182,687 | 38.0 | % | $ | 789,271 | $ | 476,211 | 65.7 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Earnings per common share: |
||||||||||||||||||||||||||||||||
Basic |
$ | 2.35 | $ | 1.70 | 38.2 | % | $ | 1.70 | 38.2 | % | $ | 7.34 | $ | 4.49 | 63.5 | % | ||||||||||||||||
Diluted |
$ | 2.12 | $ | 1.55 | 36.8 | % | $ | 1.54 | 37.7 | % | $ | 6.66 | $ | 4.16 | 60.1 | % | ||||||||||||||||
Weighted average number of common shares outstanding: |
||||||||||||||||||||||||||||||||
Basic |
107,185 | 106,041 | 1.1 | % | 107,379 | (0.2 | %) | 107,536 | 106,174 | 1.3 | % | |||||||||||||||||||||
Diluted |
118,959 | 116,828 | 1.8 | % | 118,475 | 0.4 | % | 118,530 | 114,573 | 3.5 | % | |||||||||||||||||||||
Cash dividends declared per common share |
$ | 0.15 | $ | 0.11 | 36.4 | % | $ | 0.15 | 0.0 | % | $ | 0.60 | $ | 0.45 | 33.3 | % |
Stifel Financial Corp. Quarterly Financial Supplement | Fourth Quarter 2021 Earnings Release | Page 3 of 17 |
Non-GAAP Results of Operations (Unaudited)
Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
($ in 000s except per share information) | 12/31/2021 | 12/31/2020 | % Change | 9/30/2021 | % Change | 12/31/2021 | 12/31/2020 | % Change | ||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||||||||||
Commissions |
$ | 211,068 | $ | 199,847 | 5.6 | % | $ | 189,239 | 11.5 | % | $ | 809,500 | $ | 760,627 | 6.4 | % | ||||||||||||||||
Principal transactions |
144,584 | 142,737 | 1.3 | % | 118,977 | 21.5 | % | 581,164 | 588,303 | (1.2 | %) | |||||||||||||||||||||
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Transactional revenues |
355,652 | 342,584 | 3.8 | % | 308,216 | 15.4 | % | 1,390,664 | 1,348,930 | 3.1 | % | |||||||||||||||||||||
Capital raising |
166,591 | 164,276 | 1.4 | % | 164,061 | 1.5 | % | 709,236 | 524,161 | 35.3 | % | |||||||||||||||||||||
Advisory |
310,780 | 173,395 | 79.2 | % | 208,218 | 49.3 | % | 856,145 | 428,147 | 100.0 | % | |||||||||||||||||||||
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Investment banking |
477,371 | 337,671 | 41.4 | % | 372,279 | 28.2 | % | 1,565,381 | 952,308 | 64.4 | % | |||||||||||||||||||||
Asset management |
318,638 | 249,928 | 27.5 | % | 313,862 | 1.5 | % | 1,206,516 | 917,424 | 31.5 | % | |||||||||||||||||||||
Other income |
14,496 | 24,339 | (40.4 | %) | 18,760 | (22.7 | %) | 72,153 | 75,497 | (4.4 | %) | |||||||||||||||||||||
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Operating revenues |
1,166,157 | 954,522 | 22.2 | % | 1,013,117 | 15.1 | % | 4,234,714 | 3,294,159 | 28.6 | % | |||||||||||||||||||||
Interest revenue |
145,425 | 119,876 | 21.3 | % | 141,844 | 2.5 | % | 548,400 | 523,832 | 4.7 | % | |||||||||||||||||||||
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Total revenues |
1,311,582 | 1,074,398 | 22.1 | % | 1,154,961 | 13.6 | % | 4,783,114 | 3,817,991 | 25.3 | % | |||||||||||||||||||||
Interest expense |
7,357 | 14,515 | (49.3 | %) | 10,023 | (26.6 | %) | 45,873 | 65,778 | (30.3 | %) | |||||||||||||||||||||
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Net revenues |
1,304,225 | 1,059,883 | 23.1 | % | 1,144,938 | 13.9 | % | 4,737,241 | 3,752,213 | 26.3 | % | |||||||||||||||||||||
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Non-interest expenses: |
||||||||||||||||||||||||||||||||
Compensation and benefits |
749,929 | 613,992 | 22.1 | % | 666,605 | 12.5 | % | 2,794,209 | 2,249,076 | 24.2 | % | |||||||||||||||||||||
Occupancy and equipment rental |
75,062 | 72,009 | 4.2 | % | 72,129 | 4.1 | % | 290,130 | 272,261 | 6.6 | % | |||||||||||||||||||||
Communication and office supplies |
41,925 | 40,200 | 4.3 | % | 40,432 | 3.7 | % | 165,414 | 163,990 | 0.9 | % | |||||||||||||||||||||
Commissions and floor brokerage |
15,257 | 12,687 | 20.3 | % | 14,744 | 3.5 | % | 59,681 | 55,960 | 6.6 | % | |||||||||||||||||||||
Provision for credit losses |
4,062 | | nm | (660 | ) | nm | (11,502 | ) | 33,925 | (133.9 | %) | |||||||||||||||||||||
Other operating expenses |
83,094 | 68,588 | 21.1 | % | 77,903 | 6.7 | % | 306,914 | 265,377 | 15.7 | % | |||||||||||||||||||||
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Total non-interest expenses |
969,329 | 807,476 | 20.0 | % | 871,153 | 11.3 | % | 3,604,846 | 3,040,589 | 18.6 | % | |||||||||||||||||||||
Income before income taxes |
334,896 | 252,407 | 32.7 | % | 273,785 | 22.3 | % | 1,132,395 | 711,624 | 59.1 | % | |||||||||||||||||||||
Provision for income taxes |
60,188 | 49,676 | 21.2 | % | 68,443 | (12.1 | %) | 257,275 | 161,516 | 59.3 | % | |||||||||||||||||||||
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Net income |
274,708 | 202,731 | 35.5 | % | 205,342 | 33.8 | % | 875,120 | 550,108 | 59.1 | % | |||||||||||||||||||||
Preferred dividends |
9,320 | 7,677 | 21.4 | % | 9,689 | (3.8 | %) | 35,587 | 27,261 | 30.5 | % | |||||||||||||||||||||
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Net income available to common shareholders |
$ | 265,388 | $ | 195,054 | 36.1 | % | $ | 195,653 | 35.6 | % | $ | 839,533 | $ | 522,847 | 60.6 | % | ||||||||||||||||
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Earnings per common share: |
||||||||||||||||||||||||||||||||
Basic |
$ | 2.48 | $ | 1.84 | 34.8 | % | $ | 1.82 | 36.3 | % | $ | 7.81 | $ | 4.92 | 58.7 | % | ||||||||||||||||
Diluted |
$ | 2.23 | $ | 1.67 | 33.5 | % | $ | 1.65 | 35.2 | % | $ | 7.08 | $ | 4.56 | 55.3 | % | ||||||||||||||||
Weighted average number of common shares outstanding: |
||||||||||||||||||||||||||||||||
Basic |
107,185 | 106,041 | 1.1 | % | 107,379 | (0.2 | %) | 107,536 | 106,174 | 1.3 | % | |||||||||||||||||||||
Diluted |
118,959 | 116,828 | 1.8 | % | 118,475 | 0.4 | % | 118,530 | 114,573 | 3.5 | % | |||||||||||||||||||||
Cash dividends declared per common share |
$ | 0.15 | $ | 0.11 | 36.4 | % | $ | 0.15 | 0.0 | % | $ | 0.60 | $ | 0.45 | 33.3 | % |
Stifel Financial Corp. Quarterly Financial Supplement | Fourth Quarter 2021 Earnings Release | Page 4 of 17 |
Consolidated Financial Summary
Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
(Unaudited, $ in 000s except percentages) | 12/31/2021 | 12/31/2020 | % Change | 9/30/2021 | % Change | 12/31/2021 | 12/31/2020 | % Change | ||||||||||||||||||||||||
Net revenues: |
||||||||||||||||||||||||||||||||
Global Wealth Management |
$ | 674,242 | $ | 575,252 | 17.2 | % | $ | 655,533 | 2.9 | % | $ | 2,598,837 | $ | 2,190,826 | 18.6 | % | ||||||||||||||||
Institutional Group |
633,263 | 489,448 | 29.4 | % | 492,284 | 28.6 | % | 2,152,439 | 1,583,147 | 36.0 | % | |||||||||||||||||||||
Other |
(3,280 | ) | (4,790 | ) | nm | (2,879 | ) | nm | (14,188 | ) | (21,912 | ) | nm | |||||||||||||||||||
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Total net revenues |
$ | 1,304,225 | $ | 1,059,910 | 23.1 | % | $ | 1,144,938 | 13.9 | % | $ | 4,737,088 | $ | 3,752,061 | 26.3 | % | ||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||||
Global Wealth Management |
$ | 441,944 | $ | 378,790 | 16.7 | % | $ | 423,414 | 4.4 | % | $ | 1,683,884 | $ | 1,464,942 | 14.9 | % | ||||||||||||||||
Institutional Group |
458,100 | 365,793 | 25.2 | % | 367,192 | 24.8 | % | 1,593,502 | 1,257,862 | 26.7 | % | |||||||||||||||||||||
Other |
85,519 | 80,626 | 6.1 | % | 97,830 | (12.6 | %) | 392,621 | 378,097 | 3.8 | % | |||||||||||||||||||||
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Total operating expenses |
$ | 985,563 | $ | 825,209 | 19.4 | % | $ | 888,436 | 10.9 | % | $ | 3,670,007 | $ | 3,100,901 | 18.4 | % | ||||||||||||||||
Operating contribution: |
||||||||||||||||||||||||||||||||
Global Wealth Management |
$ | 232,298 | $ | 196,462 | 18.2 | % | $ | 232,119 | 0.1 | % | $ | 914,953 | $ | 725,884 | 26.0 | % | ||||||||||||||||
Institutional Group |
175,163 | 123,655 | 41.7 | % | 125,092 | 40.0 | % | 558,937 | 325,285 | 71.8 | % | |||||||||||||||||||||
Other |
(88,799 | ) | (85,416 | ) | 4.0 | % | (100,709 | ) | (11.8 | %) | (406,809 | ) | (400,009 | ) | 1.7 | % | ||||||||||||||||
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Income before income taxes |
$ | 318,662 | $ | 234,701 | 35.8 | % | $ | 256,502 | 24.2 | % | $ | 1,067,081 | $ | 651,160 | 63.9 | % | ||||||||||||||||
Financial ratios: |
||||||||||||||||||||||||||||||||
Compensation and benefits |
58.1 | % | 58.6 | % | (50 | ) | 58.7 | % | (60 | ) | 59.5 | % | 60.7 | % | (120 | ) | ||||||||||||||||
Non-compensation operating expenses |
17.5 | % | 19.3 | % | (180 | ) | 18.9 | % | (140 | ) | 18.0 | % | 21.9 | % | (390 | ) | ||||||||||||||||
Income before income taxes |
24.4 | % | 22.1 | % | 230 | 22.4 | % | 200 | 22.5 | % | 17.4 | % | 510 | |||||||||||||||||||
Effective tax rate |
18.0 | % | 19.7 | % | (170 | ) | 25.0 | % | (700 | ) | 22.7 | % | 22.7 | % | |
Stifel Financial Corp. Quarterly Financial Supplement | Fourth Quarter 2021 Earnings Release | Page 5 of 17 |
Consolidated Financial Information and Metrics |
| |||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
(Unaudited, $ in 000s except percentages and per share data) | 12/31/2021 | 12/31/2020 | % Change | 9/30/2021 | % Change | |||||||||||||||
Financial Information: |
||||||||||||||||||||
Total assets |
$ | 34,049,715 | $ | 26,604,254 | 28.0 | % | $ | 30,820,334 | 10.5 | % | ||||||||||
Total shareholders equity |
$ | 5,034,959 | $ | 4,238,766 | 18.8 | % | $ | 4,791,324 | 5.1 | % | ||||||||||
Total common equity |
$ | 4,349,959 | $ | 3,703,766 | 17.4 | % | $ | 4,106,324 | 5.9 | % | ||||||||||
Goodwill and intangible assets |
$ | (1,455,049 | ) | $ | (1,322,982 | ) | 10.0 | % | $ | (1,310,038 | ) | 11.1 | % | |||||||
DTL on goodwill and intangible assets |
$ | 58,126 | $ | 51,189 | 13.6 | % | $ | 55,430 | 4.9 | % | ||||||||||
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Tangible common equity |
$ | 2,953,036 | $ | 2,431,973 | 21.4 | % | $ | 2,851,716 | 3.6 | % | ||||||||||
Preferred equity |
$ | 685,000 | $ | 535,000 | 28.0 | % | $ | 685,000 | 0.0 | % | ||||||||||
Financial Metrics: |
||||||||||||||||||||
Book value per common share (2) |
$ | 41.63 | $ | 35.91 | 15.9 | % | $ | 39.38 | 5.7 | % | ||||||||||
Tangible book value per common share (2) |
$ | 28.26 | $ | 23.58 | 19.8 | % | $ | 27.35 | 3.3 | % | ||||||||||
Return on common equity (3) |
23.7 | % | 20.0 | % | 17.9 | % | ||||||||||||||
Non-GAAP return on common equity (1)(3) |
25.0 | % | 21.6 | % | 19.2 | % | ||||||||||||||
Return on tangible common equity (4) |
34.7 | % | 30.8 | % | 25.9 | % | ||||||||||||||
Non-GAAP return on tangible common equity (1)(4) |
36.6 | % | 33.3 | % | 27.7 | % | ||||||||||||||
Pre-tax margin on net revenues |
24.4 | % | 22.1 | % | 22.4 | % | ||||||||||||||
Non-GAAP pre-tax margin on net revenues (1) |
25.7 | % | 23.8 | % | 23.9 | % | ||||||||||||||
Effective tax rate |
18.0 | % | 19.7 | % | 25.0 | % | ||||||||||||||
Non-GAAP effective tax rate (1) |
18.0 | % | 19.7 | % | 25.0 | % |
Stifel Financial Corp. Quarterly Financial Supplement | Fourth Quarter 2021 Earnings Release | Page 6 of 17 |
Regulatory Capital |
| |||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
(Unaudited, $ in 000s except percentages) | 12/31/2021 | 12/31/2020 | % Change | 9/30/2021 | % Change | |||||||||||||||
SF Regulatory Capital (5): |
||||||||||||||||||||
Common equity tier 1 capital |
$ | 2,938,955 | $ | 2,391,296 | 22.9 | % | $ | 2,816,734 | 4.3 | % | ||||||||||
Tier 1 capital |
$ | 3,623,955 | $ | 2,926,296 | 23.8 | % | $ | 3,501,734 | 3.5 | % | ||||||||||
Risk-weighted assets |
$ | 19,366,321 | $ | 14,489,828 | 33.7 | % | $ | 16,993,177 | 14.0 | % | ||||||||||
Common equity tier 1 capital ratio |
15.2 | % | 16.5 | % | 16.6 | % | ||||||||||||||
Tier 1 risk based capital ratio |
18.7 | % | 20.2 | % | 20.6 | % | ||||||||||||||
Tier 1 leverage capital ratio |
11.7 | % | 11.9 | % | 12.0 | % | ||||||||||||||
Stifel Bank & Trust Regulatory Capital (5): |
||||||||||||||||||||
Common equity tier 1 capital |
$ | 1,274,994 | $ | 1,029,659 | 23.8 | % | $ | 1,145,805 | 11.3 | % | ||||||||||
Tier 1 capital |
$ | 1,274,994 | $ | 1,029,659 | 23.8 | % | $ | 1,145,805 | 11.3 | % | ||||||||||
Risk-weighted assets |
$ | 12,001,325 | $ | 8,994,589 | 33.4 | % | $ | 10,727,146 | 11.9 | % | ||||||||||
Common equity tier 1 capital ratio |
10.6 | % | 11.4 | % | 10.7 | % | ||||||||||||||
Tier 1 risk based capital ratio |
10.6 | % | 11.4 | % | 10.7 | % | ||||||||||||||
Tier 1 leverage capital ratio |
7.1 | % | 7.1 | % | 7.0 | % | ||||||||||||||
Stifel Bank Regulatory Capital (5): |
||||||||||||||||||||
Common equity tier 1 capital |
$ | 302,231 | $ | 209,795 | 44.1 | % | $ | 309,150 | (2.2 | %) | ||||||||||
Tier 1 capital |
$ | 302,231 | $ | 209,795 | 44.1 | % | $ | 309,150 | (2.2 | %) | ||||||||||
Risk-weighted assets |
$ | 2,197,216 | $ | 1,269,379 | 73.1 | % | $ | 1,480,711 | 48.4 | % | ||||||||||
Common equity tier 1 capital ratio |
13.8 | % | 16.5 | % | 20.9 | % | ||||||||||||||
Tier 1 risk based capital ratio |
13.8 | % | 16.5 | % | 20.9 | % | ||||||||||||||
Tier 1 leverage capital ratio |
7.1 | % | 7.3 | % | 7.1 | % | ||||||||||||||
Stifel Net Capital (5): |
||||||||||||||||||||
Net capital |
$ | 614,200 | $ | 487,700 | 25.9 | % | $ | 654,900 | (6.2 | %) | ||||||||||
Excess net capital |
$ | 584,800 | $ | 463,300 | 26.2 | % | $ | 628,600 | (7.0 | %) |
Stifel Financial Corp. Quarterly Financial Supplement | Fourth Quarter 2021 Earnings Release | Page 7 of 17 |
Global Wealth Management - Summary Results of Operations |
| |||||||||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
(Unaudited, $ in 000s except percentages) | 12/31/2021 | 12/31/2020 | % Change | 9/30/2021 | % Change | 12/31/2021 | 12/31/2020 | % Change | ||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||||||||||
Commissions |
$ | 146,335 | $ | 139,594 | 4.8 | % | $ | 133,998 | 9.2 | % | $ | 567,491 | $ | 513,247 | 10.6 | % | ||||||||||||||||
Principal transactions |
48,592 | 46,125 | 5.3 | % | 50,074 | (3.0 | %) | 207,474 | 174,101 | 19.2 | % | |||||||||||||||||||||
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Transactional revenues |
194,927 | 185,719 | 5.0 | % | 184,072 | 5.9 | % | 774,965 | 687,348 | 12.7 | % | |||||||||||||||||||||
Asset management |
318,612 | 249,907 | 27.5 | % | 313,838 | 1.5 | % | 1,206,406 | 917,353 | 31.5 | % | |||||||||||||||||||||
Net interest |
138,891 | 110,521 | 25.7 | % | 130,341 | 6.6 | % | 511,693 | 478,948 | 6.8 | % | |||||||||||||||||||||
Investment banking (6) |
11,183 | 9,562 | 17.0 | % | 11,580 | (3.4 | %) | 48,210 | 36,024 | 33.8 | % | |||||||||||||||||||||
Other income |
10,629 | 19,543 | (45.6 | %) | 15,702 | (32.3 | %) | 57,563 | 71,153 | (19.1 | %) | |||||||||||||||||||||
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Net revenues |
674,242 | 575,252 | 17.2 | % | 655,533 | 2.9 | % | 2,598,837 | 2,190,826 | 18.6 | % | |||||||||||||||||||||
Non-interest expenses: |
||||||||||||||||||||||||||||||||
Compensation and benefits |
349,428 | 303,961 | 15.0 | % | 342,792 | 1.9 | % | 1,370,308 | 1,138,525 | 20.4 | % | |||||||||||||||||||||
Non-compensation operating expenses |
92,516 | 74,829 | 23.6 | % | 80,622 | 14.8 | % | 313,576 | 326,417 | (3.9 | %) | |||||||||||||||||||||
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Total non-interest expenses |
441,944 | 378,790 | 16.7 | % | 423,414 | 4.4 | % | 1,683,884 | 1,464,942 | 14.9 | % | |||||||||||||||||||||
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Income before income taxes |
$ | 232,298 | $ | 196,462 | 18.2 | % | $ | 232,119 | 0.1 | % | $ | 914,953 | $ | 725,884 | 26.0 | % | ||||||||||||||||
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As a percentage of net revenues: |
||||||||||||||||||||||||||||||||
Compensation and benefits |
51.8 | % | 52.8 | % | (100 | ) | 52.3 | % | (50 | ) | 52.7 | % | 52.0 | % | 70 | |||||||||||||||||
Non-compensation operating expenses |
13.7 | % | 13.0 | % | 70 | 12.3 | % | 140 | 12.1 | % | 14.9 | % | (280 | ) | ||||||||||||||||||
Income before income taxes |
34.5 | % | 34.2 | % | 30 | 35.4 | % | (90 | ) | 35.2 | % | 33.1 | % | 210 |
Stifel Financial Corp. Quarterly Financial Supplement | Fourth Quarter 2021 Earnings Release | Page 8 of 17 |
Global Wealth Management - Statistical Information |
| |||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
(Unaudited, $ in 000s except financial advisors and locations) | 12/31/2021 | 12/31/2020 | % Change | 9/30/2021 | % Change | |||||||||||||||
Financial advisors |
2,227 | 2,187 | 1.8 | % | 2,212 | 0.7 | % | |||||||||||||
Independent contractors |
91 | 93 | (2.2 | %) | 90 | 1.1 | % | |||||||||||||
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Total financial advisors |
2,318 | 2,280 | 1.7 | % | 2,302 | 0.7 | % | |||||||||||||
Locations (7) |
396 | 392 | 1.0 | % | 391 | 1.3 | % | |||||||||||||
Total client assets |
$ | 435,978,000 | $ | 357,429,000 | 22.0 | % | $ | 406,959,000 | 7.1 | % | ||||||||||
Fee-based client assets |
$ | 162,428,000 | $ | 129,372,000 | 25.6 | % | $ | 150,472,000 | 7.9 | % | ||||||||||
Transactional assets |
$ | 273,550,000 | $ | 228,057,000 | 19.9 | % | $ | 256,487,000 | 6.7 | % | ||||||||||
Client money market and insured product |
$ | 27,881,000 | $ | 22,837,000 | 22.1 | % | $ | 24,974,000 | 11.6 | % | ||||||||||
Secured client lending (8) |
$ | 3,892,609 | $ | 2,816,973 | 38.2 | % | $ | 3,588,799 | 8.5 | % | ||||||||||
Asset Management Revenue ($ in 000s): |
||||||||||||||||||||
Private Client Group (9) |
$ | 270,685 | $ | 208,238 | 30.0 | % | $ | 267,300 | 1.3 | % | ||||||||||
Asset Management |
34,179 | 28,298 | 20.8 | % | 33,145 | 3.1 | % | |||||||||||||
Third-party Bank Sweep Program |
862 | 2,782 | (69.0 | %) | 791 | 9.0 | % | |||||||||||||
Other (10) |
12,912 | 10,610 | 21.7 | % | 12,626 | 2.3 | % | |||||||||||||
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|
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|
|
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|
|
|
|
|||||||||||
Total asset management revenues |
$ | 318,638 | $ | 249,928 | 27.5 | % | $ | 313,862 | 1.5 | % | ||||||||||
Fee-based Assets ($ in millions): |
||||||||||||||||||||
Private Client Group (9) |
$ | 141,456 | 111,995 | 26.3 | % | $ | 130,931 | 8.0 | % | |||||||||||
Asset Management |
36,299 | 29,864 | 21.5 | % | 33,655 | 7.9 | % | |||||||||||||
Elimination (11) |
(15,327 | ) | (12,487 | ) | 22.7 | % | (14,114 | ) | 8.6 | % | ||||||||||
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|
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|
|||||||||||
Total fee-based assets |
$ | 162,428 | $ | 129,372 | 25.6 | % | $ | 150,472 | 7.9 | % | ||||||||||
Third-party Bank Sweep Program |
$ | 6,253 | $ | 6,555 | (4.6 | %) | $ | 6,051 | 3.3 | % | ||||||||||
ROA (bps) (12): |
||||||||||||||||||||
Private Client Group (9) |
82.7 | 83.8 | 82.5 | |||||||||||||||||
Asset Management |
37.7 | 37.9 | 39.4 | |||||||||||||||||
Third-party Bank Sweep Program |
5.5 | 18.9 | 5.0 |
Stifel Financial Corp. Quarterly Financial Supplement | Fourth Quarter 2021 Earnings Release | Page 9 of 17 |
Institutional Group - Summary Results of Operations |
| |||||||||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
(Unaudited, $ in 000s except percentages) | 12/31/2021 | 12/31/2020 | % Change | 9/30/2021 | % Change | 12/31/2021 | 12/31/2020 | % Change | ||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||||||||||
Commissions |
$ | 64,733 | $ | 60,253 | 7.4 | % | $ | 55,241 | 17.2 | % | $ | 242,009 | $ | 247,380 | (2.2 | %) | ||||||||||||||||
Principal transactions |
95,990 | 96,612 | (0.6 | %) | 68,904 | 39.3 | % | 373,689 | 414,202 | (9.8 | %) | |||||||||||||||||||||
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Transactional revenues |
160,723 | 156,865 | 2.5 | % | 124,145 | 29.5 | % | 615,698 | 661,582 | (6.9 | %) | |||||||||||||||||||||
Capital raising |
155,470 | 154,710 | 0.5 | % | 152,481 | 2.0 | % | 661,088 | 488,152 | 35.4 | % | |||||||||||||||||||||
Advisory |
310,718 | 173,399 | 79.2 | % | 208,218 | 49.2 | % | 856,083 | 428,132 | 100.0 | % | |||||||||||||||||||||
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|||||||||||||||||
Investment banking |
466,188 | 328,109 | 42.1 | % | 360,699 | 29.2 | % | 1,517,171 | 916,284 | 65.6 | % | |||||||||||||||||||||
Other income (13) |
6,352 | 4,474 | 42.0 | % | 7,440 | (14.6 | %) | 19,570 | 5,281 | 270.6 | % | |||||||||||||||||||||
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|||||||||||||||||
Net revenues |
633,263 | 489,448 | 29.4 | % | 492,284 | 28.6 | % | 2,152,439 | 1,583,147 | 36.0 | % | |||||||||||||||||||||
Non-interest expenses: |
||||||||||||||||||||||||||||||||
Compensation and benefits |
367,439 | 284,607 | 29.1 | % | 283,063 | 29.8 | % | 1,251,595 | 942,769 | 32.8 | % | |||||||||||||||||||||
Non-compensation operating expenses |
90,661 | 81,186 | 11.7 | % | 84,129 | 7.8 | % | 341,907 | 315,093 | 8.5 | % | |||||||||||||||||||||
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|
|||||||||||||||||
Total non-interest expenses |
458,100 | 365,793 | 25.2 | % | 367,192 | 24.8 | % | 1,593,502 | 1,257,862 | 26.7 | % | |||||||||||||||||||||
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Income before income taxes |
$ | 175,163 | $ | 123,655 | 41.7 | % | $ | 125,092 | 40.0 | % | $ | 558,937 | $ | 325,285 | 71.8 | % | ||||||||||||||||
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|||||||||||||||||
As a percentage of net revenues: |
||||||||||||||||||||||||||||||||
Compensation and benefits |
58.0 | % | 58.1 | % | (10 | ) | 57.5 | % | 50 | 58.1 | % | 59.6 | % | (150 | ) | |||||||||||||||||
Non-compensation operating expenses |
14.3 | % | 16.6 | % | (230 | ) | 17.1 | % | (280 | ) | 15.9 | % | 19.9 | % | (400 | ) | ||||||||||||||||
Income before income taxes |
27.7 | % | 25.3 | % | 240 | 25.4 | % | 230 | 26.0 | % | 20.5 | % | 550 |
Stifel Financial Corp. Quarterly Financial Supplement | Fourth Quarter 2021 Earnings Release | Page 10 of 17 |
Stifel Bancorp - Financial Information and Credit Metrics
Three Months Ended | ||||||||||||||||||||
(Unaudited, $ in 000s except percentages) | 12/31/2021 | 12/31/2020 | % Change | 9/30/2021 | % Change | |||||||||||||||
Stifel Bancorp Financial Information: |
||||||||||||||||||||
Total assets |
$ | 25,073,605 | $ | 18,867,133 | 32.9 | % | $ | 22,164,598 | 13.1 | % | ||||||||||
Total shareholders equity |
$ | 1,720,746 | $ | 1,399,382 | 23.0 | % | $ | 1,607,936 | 7.0 | % | ||||||||||
Total loans, net (includes loans held for sale) |
$ | 16,835,562 | $ | 11,558,008 | 45.7 | % | $ | 13,658,697 | 23.3 | % | ||||||||||
Commercial and industrial |
7,345,753 | 4,296,089 | 71.0 | % | 5,033,313 | 45.9 | % | |||||||||||||
Residential real estate |
5,482,026 | 3,956,670 | 38.6 | % | 4,952,372 | 10.7 | % | |||||||||||||
Securities-based loans |
2,880,158 | 1,933,974 | 48.9 | % | 2,581,705 | 11.6 | % | |||||||||||||
Commercial real estate |
409,847 | 366,485 | 11.8 | % | 369,502 | 10.9 | % | |||||||||||||
Other |
625,703 | 617,595 | 1.3 | % | 694,395 | (9.9 | %) | |||||||||||||
Loans held for sale |
207,715 | 551,248 | (62.3 | %) | 156,110 | 33.1 | % | |||||||||||||
Investment securities |
$ | 7,460,111 | $ | 6,344,718 | 17.6 | % | $ | 7,587,896 | (1.7 | %) | ||||||||||
Available-for-sale securities, at fair value |
2,113,893 | 2,229,878 | (5.2 | %) | 2,242,465 | (5.7 | %) | |||||||||||||
Held-to-maturity securities, at amortized cost |
5,346,218 | 4,114,840 | 29.9 | % | 5,345,431 | 0.0 | % | |||||||||||||
Total deposits |
$ | 23,280,348 | $ | 17,396,497 | 33.8 | % | $ | 20,398,874 | 14.1 | % | ||||||||||
Demand deposits (interest-bearing) |
22,626,560 | 16,886,953 | 34.0 | % | 19,729,032 | 14.7 | % | |||||||||||||
Demand deposits (non interest-bearing) |
626,633 | 411,890 | 52.1 | % | 635,059 | (1.3 | %) | |||||||||||||
Certificates of deposit |
27,155 | 97,654 | (72.2 | %) | 34,783 | (21.9 | %) | |||||||||||||
Credit Metrics: |
||||||||||||||||||||
Allowance for credit losses |
$ | 118,562 | $ | 135,295 | (12.4 | %) | $ | 114,531 | 3.5 | % | ||||||||||
Allowance as a percentage of retained loans |
0.71 | % | 1.22 | % | 0.84 | % | ||||||||||||||
Net charge-offs as a percentage of average loans |
0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||
Total nonperforming assets |
$ | 17,470 | $ | 13,925 | 25.5 | % | $ | 8,449 | 106.8 | % | ||||||||||
Nonperforming assets as a percentage of total assets |
0.07 | % | 0.07 | % | 0.04 | % |
Stifel Financial Corp. Quarterly Financial Supplement | Fourth Quarter 2021 Earnings Release | Page 11 of 17 |
Loans and Lending Commitments - Allowance for Credit Losses
December 31, 2021 | ||||||||||||||||
(Unaudited, $ in 000s except percentages) | Loans and Lending Commitments |
ACL | ACL % | Q4 Provision | ||||||||||||
Commercial and industrial |
$ | 7,345,753 | $ | 53,529 | 0.7 | % | $ | 6,872 | ||||||||
Residential real estate |
5,482,026 | 28,560 | 0.5 | % | 4,657 | |||||||||||
Securities-based loans |
2,880,158 | 4,006 | 0.1 | % | 679 | |||||||||||
Commercial real estate |
409,847 | 3,934 | 1.0 | % | (1,388 | ) | ||||||||||
Other |
625,703 | 9,315 | 1.5 | % | (5,738 | ) | ||||||||||
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Loans held for investment, gross |
16,743,487 | 99,344 | 0.6 | % | 5,082 | |||||||||||
Loans held for sale |
207,715 | |||||||||||||||
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|
|||||||||||||||
Total loans, gross |
16,951,202 | |||||||||||||||
Lending commitments |
3,088,000 | 19,218 | 0.6 | % | (1,020 | ) | ||||||||||
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Loans and lending commitments |
$ | 20,039,202 | $ | 118,562 | $ | 4,062 | ||||||||||
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Stifel Financial Corp. Quarterly Financial Supplement | Fourth Quarter 2021 Earnings Release | Page 12 of 17 |
Consolidated Net Interest Income
Three Months Ended | ||||||||||||||||||||||||||||||||||||
December 31, 2021 | December 31, 2020 | September 30, 2021 | ||||||||||||||||||||||||||||||||||
($ in millions, except percentages) | Average balance |
Interest income/expense |
Average interest rate |
Average balance |
Interest income/expense |
Average interest rate |
Average balance |
Interest income/expense |
Average interest rate |
|||||||||||||||||||||||||||
Interest-earning assets: |
||||||||||||||||||||||||||||||||||||
Cash and federal funds sold |
$ | 1,616.7 | $ | 1.1 | 0.26 | % | $ | 1,545.2 | $ | 1.1 | 0.28 | % | $ | 1,537.9 | $ | 1.0 | 0.27 | % | ||||||||||||||||||
Financial instruments owned |
1,160.1 | 6.0 | 2.08 | % | 670.9 | 2.2 | 1.33 | % | 1,001.2 | 3.6 | 1.43 | % | ||||||||||||||||||||||||
Margin balances |
1,072.2 | 6.8 | 2.53 | % | 869.0 | 5.9 | 2.70 | % | 1,081.0 | 6.6 | 2.45 | % | ||||||||||||||||||||||||
Investments: |
||||||||||||||||||||||||||||||||||||
Asset-backed securities |
5,583.7 | 24.1 | 1.73 | % | 4,826.6 | 21.5 | 1.78 | % | 5,393.1 | 25.2 | 1.87 | % | ||||||||||||||||||||||||
Mortgage-backed securities |
1,062.4 | 4.2 | 1.59 | % | 758.8 | 2.6 | 1.38 | % | 1,068.4 | 3.7 | 1.40 | % | ||||||||||||||||||||||||
Corporate fixed income securities |
794.7 | 5.8 | 2.90 | % | 602.8 | 4.1 | 2.74 | % | 775.7 | 5.3 | 2.72 | % | ||||||||||||||||||||||||
Other |
4.3 | | 2.09 | % | 6.8 | 0.1 | 2.06 | % | 4.9 | | 1.95 | % | ||||||||||||||||||||||||
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|
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Total investments |
7,445.1 | 34.1 | 1.83 | % | 6,195.0 | 28.3 | 1.83 | % | 7,242.1 | 34.2 | 1.89 | % | ||||||||||||||||||||||||
Loans: |
||||||||||||||||||||||||||||||||||||
Commercial and industrial |
5,802.4 | 47.7 | 3.29 | % | 4,206.7 | 32.7 | 3.11 | % | 4,915.9 | 40.9 | 3.33 | % | ||||||||||||||||||||||||
Residential real estate |
5,180.9 | 32.9 | 2.54 | % | 3,820.8 | 27.7 | 2.90 | % | 4,743.3 | 30.7 | 2.59 | % | ||||||||||||||||||||||||
Securities-based loans |
2,763.9 | 13.2 | 1.91 | % | 1,899.7 | 9.6 | 2.03 | % | 2,425.0 | 11.7 | 1.94 | % | ||||||||||||||||||||||||
Commercial real estate |
372.4 | 2.7 | 2.92 | % | 379.1 | 3.3 | 3.52 | % | 365.3 | 3.4 | 3.77 | % | ||||||||||||||||||||||||
Loans held for sale |
219.5 | 1.4 | 2.64 | % | 489.1 | 3.0 | 2.45 | % | 364.1 | 2.8 | 3.02 | % | ||||||||||||||||||||||||
Other |
692.1 | 5.5 | 3.10 | % | 649.3 | 4.9 | 3.02 | % | 677.4 | 5.6 | 3.30 | % | ||||||||||||||||||||||||
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Total loans |
15,031.2 | 103.4 | 2.75 | % | 11,444.7 | 81.2 | 2.84 | % | 13,491.0 | 95.1 | 2.82 | % | ||||||||||||||||||||||||
Other interest-bearing assets |
748.8 | (6.0 | ) | (3.18 | %) | 469.6 | 1.2 | 1.00 | % | 702.5 | 1.3 | 0.74 | % | |||||||||||||||||||||||
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|||||||||||||||||||
Total interest-bearing assets/ interest income |
27,074.1 | 145.4 | 2.15 | % | 21,194.4 | 119.9 | 2.26 | % | 25,055.7 | 141.8 | 2.26 | % | ||||||||||||||||||||||||
Interest-bearing liabilities: |
||||||||||||||||||||||||||||||||||||
Senior notes |
1,113.3 | 11.6 | 4.16 | % | 1,311.0 | 14.4 | 4.39 | % | 1,113.0 | 11.9 | 4.26 | % | ||||||||||||||||||||||||
Deposits |
21,056.3 | 0.9 | 0.02 | % | 16,429.1 | 1.2 | 0.03 | % | 19,545.5 | 1.1 | 0.02 | % | ||||||||||||||||||||||||
Federal Home Loan advances |
137.3 | 0.1 | 0.31 | % | 137.0 | 0.1 | 0.34 | % | 5.7 | | 0.28 | % | ||||||||||||||||||||||||
Other interest-bearing liabilities |
1,454.9 | (5.2 | ) | (1.44 | %) | 513.9 | (1.2 | ) | (0.94 | %) | 1,346.0 | (3.0 | ) | (0.87 | %) | |||||||||||||||||||||
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Total interest-bearing liabilities/ interest expense |
$ | 23,761.8 | 7.4 | 0.12 | % | $ | 18,391.0 | 14.5 | 0.32 | % | $ | 22,010.2 | 10.0 | 0.18 | % | |||||||||||||||||||||
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|
|||||||||||||||||||||||||
Net interest income/margin |
$ | 138.0 | 2.04 | % | $ | 105.4 | 1.99 | % | $ | 131.8 | 2.10 | % | ||||||||||||||||||||||||
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Stifel Financial Corp. Quarterly Financial Supplement | Fourth Quarter 2021 Earnings Release | Page 13 of 17 |
Stifel Bancorp Net Interest Income
|
||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||
December 31, 2021 | December 31, 2020 | September 30, 2021 | ||||||||||||||||||||||||||||||||||
($ in millions, except percentages) | Average balance |
Interest income/expense |
Average interest rate |
Average balance |
Interest income/expense |
Average interest rate |
Average balance |
Interest income/expense |
Average interest rate |
|||||||||||||||||||||||||||
Interest-earning assets: |
||||||||||||||||||||||||||||||||||||
Cash and federal funds sold |
$ | 717.9 | $ | 0.3 | 0.17 | % | $ | 546.7 | $ | 0.2 | 0.15 | % | $ | 730.0 | $ | 0.3 | 0.19 | % | ||||||||||||||||||
Investments |
7,445.1 | 34.1 | 1.83 | % | 6,195.0 | 28.3 | 1.83 | % | 7,242.1 | 34.2 | 1.89 | % | ||||||||||||||||||||||||
Loans |
15,031.2 | 103.4 | 2.75 | % | 11,444.7 | 81.2 | 2.84 | % | 13,491.0 | 95.1 | 2.82 | % | ||||||||||||||||||||||||
Other interest-bearing assets |
51.5 | 0.4 | 3.07 | % | 42.8 | 0.4 | 3.20 | % | 43.5 | 0.4 | 3.10 | % | ||||||||||||||||||||||||
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|
|||||||||||||||||||
Total interest-bearing assets/ interest income |
$ | 23,245.7 | $ | 138.2 | 2.38 | % | $ | 18,229.2 | $ | 110.1 | 2.42 | % | $ | 21,506.6 | $ | 130.0 | 2.42 | % | ||||||||||||||||||
Interest-bearing liabilities: |
||||||||||||||||||||||||||||||||||||
Deposits |
$ | 21,056.3 | $ | 0.9 | 0.02 | % | $ | 16,429.1 | $ | 1.2 | 0.03 | % | $ | 19,545.5 | $ | 1.1 | 0.02 | % | ||||||||||||||||||
Federal Home Loan advances |
137.3 | 0.1 | 0.31 | % | 137.0 | 0.1 | 0.34 | % | 5.7 | | 0.28 | % | ||||||||||||||||||||||||
Other interest-bearing liabilities |
1.0 | | 16.71 | % | 1.4 | 0.1 | 9.87 | % | 1.3 | | 6.87 | % | ||||||||||||||||||||||||
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|
|||||||||||||||||||
Total interest-bearing liabilities/ interest expense |
$ | 21,194.6 | 1.0 | 0.02 | % | $ | 16,567.5 | 1.4 | 0.03 | % | $ | 19,552.5 | 1.1 | 0.02 | % | |||||||||||||||||||||
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|
|
|
|
|
|||||||||||||||||||||||||
Net interest income/margin |
$ | 137.2 | 2.36 | % | $ | 108.7 | 2.39 | % | $ | 128.9 | 2.40 | % | ||||||||||||||||||||||||
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Stifel Financial Corp. Quarterly Financial Supplement | Fourth Quarter 2021 Earnings Release | Page 14 of 17 |
GAAP to Core Reconciliation
|
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Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
(Unaudited, $ in 000s except percentages) | 12/31/2021 | 12/31/2020 | Change | 9/30/2021 | Change | 12/31/2021 | 12/31/2020 | Change | ||||||||||||||||||||||||
GAAP net revenues |
$ | 1,304,225 | $ | 1,059,910 | $ | 1,144,938 | $ | 4,737,088 | $ | 3,752,061 | ||||||||||||||||||||||
Non-GAAP adjustments |
| (27 | ) | | 153 | 152 | ||||||||||||||||||||||||||
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Non-GAAP net revenues |
1,304,225 | 1,059,883 | 1,144,938 | 4,737,241 | 3,752,213 | |||||||||||||||||||||||||||
GAAP compensation and benefits expense |
757,948 | 621,344 | 672,385 | 2,820,301 | 2,279,335 | |||||||||||||||||||||||||||
Merger-related (14) |
(8,019 | ) | (7,352 | ) | (5,780 | ) | (26,092 | ) | (30,259 | ) | ||||||||||||||||||||||
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|
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Non-GAAP compensation and benefits expense |
749,929 | 613,992 | 666,605 | 2,794,209 | 2,249,076 | |||||||||||||||||||||||||||
GAAP non-compensation operating expenses |
227,615 | 203,865 | 216,051 | 849,706 | 821,566 | |||||||||||||||||||||||||||
Merger-related (14) |
(8,215 | ) | (10,381 | ) | (11,503 | ) | (39,069 | ) | (30,053 | ) | ||||||||||||||||||||||
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|
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Non-GAAP non-compensation operating expenses |
219,400 | 193,484 | 204,548 | 810,637 | 791,513 | |||||||||||||||||||||||||||
GAAP provision for income taxes |
57,272 | 46,232 | 64,126 | 242,223 | 147,688 | |||||||||||||||||||||||||||
Merger-related and other (15) |
2,916 | 3,444 | 4,317 | 15,052 | 13,828 | |||||||||||||||||||||||||||
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Non-GAAP provision for income taxes |
60,188 | 49,676 | 68,443 | 257,275 | 161,516 | |||||||||||||||||||||||||||
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Total merger-related adjustments |
(16,234 | ) | (17,706 | ) | (17,283 | ) | (65,314 | ) | (60,464 | ) | ||||||||||||||||||||||
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Financial ratios: |
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Compensation and benefits |
57.5 | % | 57.9 | % | (40 | ) | 58.2 | % | (70 | ) | 59.0 | % | 59.9 | % | (90 | ) | ||||||||||||||||
Non-compensation operating expenses |
16.8 | % | 18.3 | % | (150 | ) | 17.9 | % | (110 | ) | 17.1 | % | 21.1 | % | (400 | ) | ||||||||||||||||
Income before income taxes |
25.7 | % | 23.8 | % | 190 | 23.9 | % | 180 | 23.9 | % | 19.0 | % | 490 | |||||||||||||||||||
Effective tax rate |
18.0 | % | 19.7 | % | (170 | ) | 25.0 | % | (700 | ) | 22.7 | % | 22.7 | % | |
Stifel Financial Corp. Quarterly Financial Supplement | Fourth Quarter 2021 Earnings Release | Page 15 of 17 |
Footnotes
(1) | Please refer to the GAAP to Core Reconciliation for a reconciliation of the Companys 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), a non-GAAP financial measure, 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 $56.3 million, $50.7 million, and $54.5 million, as of December 31, 2021 and 2020, and September 30, 2021, respectively. |
(5) | Regulatory capital amounts and ratios are estimates as of the date of the Companys earnings release, January 26, 2022. |
(6) | Includes capital raising and advisory fee revenues. |
(7) | Represents Global Wealth Management locations. Historical periods have been restated to conform with the current period presentation. |
(8) | Includes client margin balances held by the Companys broker-dealer subsidiaries and securities-based loans held at the Companys bank subsidiaries. |
(9) | Includes Private Client Group and Trust Business |
(10) | Includes fund networking fees, retirement fees, transaction/handling fees, and ACAT fees. |
(11) | Asset management assets managed in Private Client Group or Trust accounts. |
(12) | Return on assets (ROA) is calculated based on prior period-end balances for Private Client Group, period-end balances for Asset Management, and average quarterly balances for Individual Program Banks. |
(13) | Includes net interest, asset management, and other income. |
(14) | 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 Companys on-going business. |
(15) | Primarily represents the Companys effective tax rate for the period applied to the non-GAAP adjustments. |
Stifel Financial Corp. Quarterly Financial Supplement | Fourth Quarter 2021 Earnings Release | Page 16 of 17 |
Disclaimer and Legal Notice
Forward-Looking Statements
This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks, assumptions, and uncertainties, including statements relating to the market opportunity and future business prospects of Stifel Financial Corp., as well as Stifel, Nicolaus & Company, Incorporated and its subsidiaries (collectively, SF or the Company). These statements can be identified by the use of the words may, will, should, could, would, plan, potential, estimate, project, believe, intend, anticipate, expect, and similar expressions.
All statements not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. For information about the risks and important factors that could affect the Companys future results, financial condition and liquidity, see Risk Factors in Part I of the Companys Annual Report on Form 10-K for the year ended December 31, 2020. Forward-looking statements speak only as to the date they are made. The Company disclaims any intent or obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
Statements about the effects of the COVID-19 pandemic on the Companys business, results, financial position and liquidity may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected.
Use of Non-GAAP Financial Measures
The Company 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 Companys 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 Companys fourth quarter earnings release issued January 26, 2022.
Stifel Financial Corp. Quarterly Financial Supplement | Fourth Quarter 2021 Earnings Release | Page 17 of 17 |
Fourth Quarter & Full Year 2021 Financial Results Presentation January 26, 2022 Exhibit 99.3
26th Consecutive Year of Record Net Revenue 2021 Snapshot 2021 Results millions, except per share and ratios HIGHLIGHTS NET REVENUE GAAP & NON-GAAP $4,737 PRE-TAX MARGIN GAAP 22.5% NON-GAAP 23.9% NET EARNINGS GAAP $789 NON-GAAP $840 EPS GAAP $6.66 NON-GAAP $7.08 ROCE GAAP 19.7% NON-GAAP 21.0% ROTCE* GAAP 29.1% NON-GAAP 30.9% Record Pre-Tax Income & Earnings Per Share Record Revenue for Global Wealth Management & Institutional Group Record Investment Banking Revenue & Client Assets Under Administration Increased Common Dividend By 100% Loan Growth in 2021 of 46% * Please see our definition of ROTCE in our fourth quarter 2021 earnings release
Impressive Track Record of Growth 2015 & 2016 exclude duplicative acquisition costs Earnings per share have been adjusted to reflect December 2020 three for two stock split Non-GAAP
Record Net Revenue Fourth Quarter Snapshot 4Q21 Results millions, except per share and ratios HIGHLIGHTS NET REVENUE GAAP & NON-GAAP $1,304 NET EARNINGS GAAP $252 NON-GAAP $265 EPS GAAP $2.12 NON-GAAP $2.23 ANNUALIZED ROCE GAAP 23.7% NON-GAAP 25.0% ANNUALIZED ROTCE* GAAP 34.7% NON-GAAP 36.6% BOOK VALUE PER SHARE TBV $28.26 BV $41.63 Record Pre-tax Income & EPS Record Global Wealth Management Revenue Record Institutional Group Revenue Record Investment Banking Advisory Pipelines Loan Growth of $3 billion * Please see our definition of ROTCE in our fourth quarter 2021 earnings release
Fourth Quarter Results FOURTH QUARTER HIGHLIGHTS Record Quarterly: Net Revenue of $1.3 billion, up 23% Y/Y: Global Wealth Management Revenue of $674 million, up 17% Y/Y Institutional Group Revenue of $633 million, up 29% Non-GAAP Pre-tax Margin of 25.7%, up 190 bps Y/Y Fee-based Client Assets of $162 billion, up 26% Y/Y Tangible Book Value Per Share of $28.26, up 20% Y/Y Non-GAAP annualized ROTCE3 of 36.6%, up 890 basis points sequentially Operating Expense = Non-Compensation Expense – Provision for Credit Loss Operating Expense Ratio excludes Provision for Credit Loss Please see our definition of ROTCE in our fourth quarter earnings release )
HIGHLIGHTS Record Full Year Net Revenue of $2.6 billion, up 19% Y/Y Record Quarterly Revenue of $674 million, up 17% Y/Y Private Client Fee-based Assets Increased 26% Y/Y Added 34 Financial Advisors with Total Trailing Twelve Month Production of $16 million. 27 Employee Advisors, Including 16 Experienced Advisors with Trailing Twelve Month Production of $10.7 million 7 Independent Advisors with Trailing Twelve Month Production of $5.6 million Global Wealth Management
Wealth Management Metrics Technology to support advice-based model Stifel Wealth Tracker – online and mobile app: free/ secure / smart aggregation / budgeting tools / advice when you want it / understand the markets / understand your complete financial picture Performance reporting tools – enhanced platform-wide capabilities with key vendor partners collaborating Cash management and digital banking capabilities in WM platform, including client mobile app Video meetings, centralized technology support 92% Annualized Growth in 4Q21 33% Annualized Growth in 3Q21
Institutional Group * Includes net interest, asset management, and other income HIGHLIGHTS Record Results: Quarterly Net Revenue of $633 million, up 29% Y/Y Full Year Net Revenue of $2.152 billion, up 36% Y/Y Quarterly & Full Year Advisory Revenue Full Year Capital Raising Revenue Second Highest Annual Transactional Revenue Quarterly Pre-tax Margin of 27.7%, up 240 bps Y/Y * 2021 revenue based on annualized results through 9/30/2021 institutional Growth Rates from 2011 – 2021 Advisory Revenue Increased 1,048% Capital Raising Revenue Increased 628% Transactional Revenue Increased 94% Percentage Of Transaction Revenue Declining 2011: Transactional Revenue Accounted for 64% of Revenue 2021: Transactional Revenue Accounted for 29% of Revenue
highlights Record Full Year Total Fixed Income Revenue Record Quarterly Capital Raising Revenue Surpassed Prior Record by 11% (3Q21) Second Highest Full Year Transactional Revenue Ranked # 1in Public Finance Senior Managed Negotiated Issues in 2021 Institutional Equities & Fixed Income highlights Record Full Year Total Equities Revenue Surpassed Prior Record by 22% (2020) Record Full Year Capital Raising Revenue Surpassed Prior Record by 42% (2020) Second Highest Full Year Transactional Revenue Bar chart header numbers are a graphic
Investment Banking Revenue Highlights Record Results: Full Year Investment Banking Revenue Surpassed Prior Record by 64% (2020) Quarterly Investment Banking Revenue Surpassed Prior Record by 27% (2Q21) Full Year Advisory Revenue Surpassed Prior Record by 91% (2019) Quarterly Advisory Revenue Surpassed Prior Record by 49% (3Q21) Full Year Capital Raising Revenue Surpassed Prior Record by 35% (2020) Bar chart header numbers are a graphic * Capital Raising Includes Revenue from Global Wealth Management * Investment Banking Managing Directors excludes Public Finance Managing Directors
Net Interest Income Net Interest commentary 4Q21 Net Interest Income Increased 31% Y/Y. Average Interest Earning Assets Increased by more than $2 billion in 4Q21. Quarter End Deposits up 28% year-on-year Balance Sheet Growth Further Increases Greater Leverage to Increased Short-term Interest Rates than in Past Cycles. Incremental Pre-tax Income for a 100 bps Increase in Fed Funds: $200 - $225 million in 2022 $66 million in 2015
Stifel Bancorp Inc. Loan & Investment Portfolio * Total excludes $208 million of loans classified as held for sale
CECL & Credit Metrics ASSUMPTIONS Moody’s Forecast 40% Baseline (gradual recovery) 30% Downside (double dip recession) 30% Upside (accelerated recovery) Forecast Update for Most Recent Scenarios Broad-based Improvement of Forecasted Economic Variables Since June 30 Incorporated a Management Overlay to Offset Some of the Forecasted Economic Variables
Capital Deployment HIGHLIGHTS Raising Quarterly Dividend by 100% Balance Sheet Growth of More than $7 billion in 2021 Client Cash Balances Increased $3 billion in 4Q21 Substantial Excess Capital to Pursue Continued Growth Additional Capital of $150 million Generated from Equity-based Compensation Incremental $150 million Generated from Preferred Issuance Repurchased Nearly 2.5 million Shares in 2021 *Payout Ratio calculated as total common stock dividends divided by GAAP net income **Pro Forma 2021 accounts for impact of 2022 dividend increase on 2021 financial results
Expenses * For reconciliation of GAAP to non-GAAP expenses, refer to our fourth quarter 2021 earnings release. Bar chart header numbers are a graphic
Strategic Review & Outlook
2021 Results Surpassed Guidance Original 2021 Guidance Assumptions Total Net Revenue Increase of 1% - 7% Net Interest Income Growth of -2% - 9% Stable to Increasing Bank Net Interest Margin (Finished 2020 at 239 basis points) Bank Interest-Earning Asset Growth of $2 billion Institutional Group Growth from Investment Banking & Fixed Income Transactional Revenue Continued Strength in Financial & Technology M&A Comp. Ratio of 58.5% - 60.5% Operating Non-Comp. Ratio of 18%-20% (1) Operating Non-Compensation Ratio excludes loan loss provision & investment banking gross up Actual 2021 Results Total Net Revenue Increased by 26% Net Interest Income Increased by 10% Bank Net Interest Margin of 239 basis points Average Interest Earning Assets Increased by $5 billion Institutional Group Growth from Investment Banking, Primarily from Advisory & Equity Capital Markets Strength in Financials, Health Care, Consumer, & Diversified Services Comp. Ratio of 59% Operating Non-Comp. Ratio of 16.1%
2022 Guidance & Growth Drivers Net Interest Income Balance Sheet Growth of up to $6 billion Bank Net Interest Margin to Benefit from Rate Increases Approximately $7 billion in Third Party Sweep Program Excess Capital Capital Ratios Well Above Well Capitalized Levels At End of 2021, Excess Capital was Approximately $700 million Substantial Additional Capital Generated Through Net Income in 2022 Institutional Group Investment Banking Pipelines at Beginning of 2022 Significantly Larger than at the Start of 2021 for Advisory Fund Placement Business is Picking Up Transactional Revenue to Benefit from Vining Sparks Acquisition Global Wealth Management Recruiting Pipelines Remain at Record Levels Actively Recruiting for Stifel Independent Advisors Fee-based Client Assets at Record Levels (1) Operating Non-Compensation Ratio excludes loan loss provision and investment banking gross up
Fourth Quarter & Full Year 2021 Financial Results Presentation January 26, 2022
Disclaimer Forward-Looking Statements This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks, assumptions, and uncertainties, including statements relating to the market opportunity and future business prospects of Stifel Financial Corp., as well as Stifel, Nicolaus & Company, Incorporated and its subsidiaries (collectively, “SF” or the “Company”). These statements can be identified by the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” and similar expressions. All statements not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. For information about the risks and important factors that could affect the Company’s future results, financial condition and liquidity, see “Risk Factors” in Part I of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Forward-looking statements speak only as to the date they are made. The Company disclaims any intent or obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. Statements about the effects of the COVID-19 pandemic on the Company’s business, results, financial position and liquidity may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Use of Non-GAAP Financial Measures The Company 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.
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