EX-99.2 3 d761108dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

 

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First Quarter 2024 Earnings Results

 

 

Quarterly Financial Supplement    Page

Consolidated Financial Highlights

    2

GAAP Consolidated Results of Operations

    3

Non-GAAP Consolidated Results of Operations

    4

Consolidated Financial Summary

    5

Consolidated Financial Information and Metrics

    6

Regulatory Capital

    7

Global Wealth Management - Summary Results of Operations

    8

Global Wealth Management - Statistical Information

    9

Institutional Group - Summary Results of Operations

    10

Stifel Bancorp - Financial Information and Credit Metrics

    11

Stifel Bancorp - Loan and Investment Portfolio

    12

Loans and Lending Commitments - Allowance for Credit Losses

    13

Consolidated Net Interest Income

    14

Stifel Bancorp Net Interest Income

    15

GAAP to Core Reconciliation

    16

Footnotes

    17

Disclaimer and Legal Notice

    18

 

Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release    Page 1 of 18

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Consolidated Financial Highlights

 

 

     Three Months Ended  
(Unaudited, 000s, except per share information)    3/31/2024      3/31/2023      % Change     12/31/2023      % Change  

Net revenues

    $ 1,163,038      $ 1,106,793        5.1 %    $ 1,146,379        1.5 % 

Net income

    $ 163,575      $ 157,539        3.8 %    $ 162,484        0.7 % 

Preferred dividends

      9,320        9,320        0.0 %      9,320        0.0 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net income available to common shareholders

    $ 154,255      $ 148,219        4.1 %    $ 153,164        0.7 % 

Earnings per diluted common share

    $ 1.49      $ 1.36        9.6 %    $ 1.46        2.1 % 

Earnings per diluted common share available to common shareholders

    $ 1.40      $ 1.28        9.4 %    $ 1.38        1.4 % 

Non-GAAP financial summary (1):

              

Net revenues

    $ 1,163,038      $ 1,106,790        5.1 %    $ 1,146,419        1.4 % 

Net income

    $ 172,666      $ 170,588        1.2 %    $ 175,907        (1.8 %) 

Preferred dividends

      9,320        9,320        0.0 %      9,320        0.0 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net income available to common shareholders

    $ 163,346        161,268        1.3 %      166,587        (1.9 %) 

Earnings per diluted common share

    $ 1.57      $ 1.48        6.1 %    $ 1.58        (0.6 %) 

Earnings per diluted common share available to common shareholders

    $ 1.49      $ 1.40        6.4 %    $ 1.50        (0.7 %) 

Weighted average number of common shares outstanding:

 

           

Basic

      104,275        108,754        (4.1 %)      103,934        0.3 % 

Diluted

      109,985        115,390        (4.7 %)      111,330        (1.2 %) 

Period end common shares outstanding

      102,649        106,172        (3.3 %)      101,062        1.6 % 

Cash dividends declared per common share

    $ 0.42      $ 0.36        16.7 %    $ 0.36        16.7 % 

 

Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release    Page 2 of 18

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GAAP Consolidated Results of Operations

 

 

     Three Months Ended  
(Unaudited, 000s, except per share information)    3/31/2024      3/31/2023     % Change     12/31/2023      % Change  

Revenues:

             

Commissions

    $ 185,476      $ 169,550       9.4 %    $ 173,614        6.8 % 

Principal transactions

      139,014        115,522       20.3 %      154,377        (10.0 %) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Transactional revenues

      324,490        285,072       13.8 %      327,991        (1.1 %) 

Capital raising

      94,697        60,816       55.7 %      76,286        24.1 % 

Advisory

      119,252        151,063       (21.1 %)      129,378        (7.8 %) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Investment banking

      213,949        211,879       1.0 %      205,664        4.0 % 

Asset management

      367,476        315,569       16.4 %      330,536        11.2 % 

Other income

      4,950        (2,293 )      315.9 %      9,687        (48.9 %) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Operating revenues

      910,865        810,227       12.4 %      873,878        4.2 % 

Interest revenue

      506,828        451,564       12.2 %      516,213        (1.8 %) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total revenues

      1,417,693        1,261,791       12.4 %      1,390,091        2.0 % 

Interest expense

      254,655        154,998       64.3 %      243,712        4.5 % 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Net revenues

      1,163,038        1,106,793       5.1 %      1,146,379        1.5 % 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Non-interest expenses:

             

Compensation and benefits

      679,695        651,190       4.4 %      674,437        0.8 % 

Occupancy and equipment rental

      88,712        82,140       8.0 %      88,182        0.6 % 

Communication and office supplies

      47,367        46,136       2.7 %      47,332        0.1 % 

Commissions and floor brokerage

      15,767        14,440       9.2 %      15,379        2.5 % 

Provision for credit losses

      5,268        4,920       7.1 %      2,263        132.8 % 

Investment banking expenses

      7,729        5,913       30.7 %      6,601        17.1 % 

Other operating expenses

      99,809        92,171       8.3 %      106,190        (6.0 %) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total non-interest expenses

      944,347        896,910       5.3 %      940,384        0.4 % 

Income before income taxes

      218,691        209,883       4.2 %      205,995        6.2 % 

Provision for income taxes

      55,116        52,344       5.3 %      43,511        26.7 % 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Net income

      163,575        157,539       3.8 %      162,484        0.7 % 

Preferred dividends

      9,320        9,320       0.0 %      9,320        0.0 % 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Net income available to common shareholders

    $ 154,255      $ 148,219       4.1 %    $ 153,164        0.7 % 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Earnings per common share:

             

Basic

    $ 1.48      $ 1.36       8.8 %    $ 1.47        0.7 % 

Diluted

    $ 1.40      $ 1.28       9.4 %    $ 1.38        1.4 % 

Weighted average number of common shares outstanding:

 

          

Basic

      104,275        108,754       (4.1 %)      103,934        0.3 % 

Diluted

      109,985        115,390       (4.7 %)      111,330        (1.2 %) 

Cash dividends declared per common share

    $ 0.42      $ 0.36       16.7 %    $ 0.36        16.7 % 

 

Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release    Page 3 of 18

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Non-GAAP Consolidated Results of Operations (1)

 

 

     Three Months Ended  
(Unaudited, 000s, except per share information)    3/31/2024      3/31/2023     % Change     12/31/2023      % Change  

Revenues:

             

Commissions

    $ 185,476      $ 169,550       9.4 %    $ 173,614        6.8 % 

Principal transactions

      139,014        115,522       20.3 %      154,377        (10.0 %) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Transactional revenues

      324,490        285,072       13.8 %      327,991        (1.1 %) 

Capital raising

      94,697        60,816       55.7 %      76,286        24.1 % 

Advisory

      119,252        151,063       (21.1 %)      129,378        (7.8 %) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Investment banking

      213,949        211,879       1.0 %      205,664        4.0 % 

Asset management

      367,476        315,569       16.4 %      330,536        11.2 % 

Other income

      4,950        (2,293 )      315.9 %      9,726        (49.1 %) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Operating revenues

      910,865        810,227       12.4 %      873,917        4.2 % 

Interest revenue

      506,828        451,564       12.2 %      516,213        (1.8 %) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total revenues

      1,417,693        1,261,791       12.4 %      1,390,130        2.0 % 

Interest expense

      254,655        155,001       64.3 %      243,711        4.5 % 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Net revenues

      1,163,038        1,106,790       5.1 %      1,146,419        1.4 % 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Non-interest expenses:

             

Compensation and benefits

      674,162        641,937       5.0 %      665,234        1.3 % 

Occupancy and equipment rental

      88,665        82,039       8.1 %      88,127        0.6 % 

Communication and office supplies

      47,364        46,134       2.7 %      47,328        0.1 % 

Commissions and floor brokerage

      15,767        14,440       9.2 %      15,379        2.5 % 

Provision for credit losses

      5,268        4,920       7.1 %      2,263        132.8 % 

Investment banking expenses

      7,729        5,913       30.7 %      6,601        17.1 % 

Other operating expenses

      93,238        84,138       10.8 %      98,571        (5.4 %) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total non-interest expenses

      932,193        879,521       6.0 %      923,503        0.9 % 

Income before income taxes

      230,845        227,269       1.6 %      222,916        3.6 % 

Provision for income taxes

      58,179        56,681       2.6 %      47,009        23.8 % 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Net income

      172,666        170,588       1.2 %      175,907        (1.8 %) 

Preferred dividends

      9,320        9,320       0.0 %      9,320        0.0 % 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Net income available to common shareholders

    $ 163,346      $ 161,268       1.3 %    $ 166,587        (1.9 %) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Earnings per common share:

             

Basic

    $ 1.57      $ 1.48       6.1 %    $ 1.60        (1.9 %) 

Diluted

    $ 1.49      $ 1.40       6.4 %    $ 1.50        (0.7 %) 

Weighted average number of common shares outstanding:

 

          

Basic

      104,275        108,754       (4.1 %)      103,934        0.3 % 

Diluted

      109,985        115,390       (4.7 %)      111,330        (1.2 %) 

Cash dividends declared per common share

    $ 0.42      $ 0.36       16.7 %    $ 0.36        16.7 % 

 

Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release    Page 4 of 18

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Consolidated Financial Summary

 

 

     Three Months Ended  
(Unaudited, 000s)    3/31/2024     3/31/2023     % Change     12/31/2023     % Change  

Net revenues:

           

Global Wealth Management

    $ 790,500     $ 757,186       4.4 %    $ 766,028       3.2 % 

Institutional Group

      351,376       332,613       5.6 %      359,292       (2.2 %) 

Other

      21,162       16,994       24.5 %      21,059       0.5 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenues

    $ 1,163,038     $ 1,106,793       5.1 %    $ 1,146,379       1.5 % 

Operating expenses:

           

Global Wealth Management

    $ 499,752     $ 441,077       13.3 %    $ 464,668       7.6 % 

Institutional Group

      314,267       298,893       5.1 %      351,521       (10.6 %) 

Other

      130,328       156,940       (17.0 %)      124,195       4.9 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

    $ 944,347     $ 896,910       5.3 %    $ 940,384       0.4 % 

Operating contribution:

           

Global Wealth Management

    $ 290,748     $ 316,109       (8.0 %)    $ 301,360       (3.5 %) 

Institutional Group

      37,109       33,720       10.1 %      7,771       377.5 % 

Other

      (109,166 )      (139,946 )      (22.0 %)      (103,136 )      5.8 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 218,691     $ 209,883       4.2 %    $ 205,995       6.2 % 

Financial ratios:

           

Compensation and benefits

      58.4 %      58.8 %      (40 )      58.8 %      (40 ) 

Non-compensation operating expenses

      22.8 %      22.2 %      60       23.2 %      (40 ) 

Income before income taxes

      18.8 %      19.0 %      (20 )      18.0 %      80  

Effective tax rate

      25.2 %      24.9 %      30       21.1 %      410  

 

Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release    Page 5 of 18

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Consolidated Financial Information and Metrics

 

 

     As of and for the Three Months Ended  
(Unaudited, 000s, except per share data)    3/31/2024     3/31/2023     % Change     12/31/2023     % Change  

Financial Information:

           

Total assets

    $ 38,258,280     $ 38,597,653       (0.9 %)    $ 37,727,460       1.4 % 

Total shareholders’ equity

    $ 5,273,941     $ 5,327,392       (1.0 %)    $ 5,294,431       (0.4 %) 

Total common equity

    $ 4,588,941     $ 4,642,392       (1.2 %)    $ 4,609,431       (0.4 %) 

Goodwill and intangible assets

    $ (1,515,588 )    $ (1,512,400 )      0.2 %    $ (1,521,522 )      (0.4 %) 

DTL on goodwill and intangible assets

    $ 74,841     $ 63,455       17.9 %    $ 72,927       2.6 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Tangible common equity

    $ 3,148,194     $ 3,193,447       (1.4 %)    $ 3,160,836       (0.4 %) 

Preferred equity

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

Financial Metrics:

           

Book value per common share (2)

    $ 44.71     $ 43.73       2.2 %    $ 45.61       (2.0 %) 

Tangible book value per common share (2)

    $ 30.67     $ 30.08       2.0 %    $ 31.28       (2.0 %) 

Return on common equity (3)

      13.5 %      12.7 %        13.4 %   

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

      14.3 %      13.9 %        14.6 %   

Return on tangible common equity (4)

      19.7 %      18.3 %        19.6 %   

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

      20.9 %      19.9 %        21.3 %   

Pre-tax margin on net revenues

      18.8 %      19.0 %        18.0 %   

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

      19.8 %      20.5 %        19.4 %   

Effective tax rate

      25.2 %      24.9 %        21.1 %   

Non-GAAP effective tax rate (1)

      25.2 %      24.9 %        21.1 %   

 

Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release    Page 6 of 18

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Regulatory Capital

 

 

     As of and for the Three Months Ended  
(Unaudited, 000s)    3/31/2024     3/31/2023     % Change     12/31/2023     % Change  

SF Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 3,225,964     $ 3,280,309       (1.7 %)    $ 3,230,965       (0.2 %) 

Tier 1 capital

    $ 3,910,964     $ 3,965,309       (1.4 %)    $ 3,915,965       (0.1 %) 

Risk-weighted assets

    $ 22,588,330     $ 23,533,555       (4.0 %)    $ 22,748,215       (0.7 %) 

Common equity tier 1 capital ratio

      14.3 %      13.9 %        14.2 %   

Tier 1 risk based capital ratio

      17.3 %      16.8 %        17.2 %   

Tier 1 leverage capital ratio

      10.6 %      10.9 %        10.5 %   

Stifel Bank & Trust Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 1,242,565     $ 1,590,068       (21.9 %)    $ 1,344,589       (7.6 %) 

Tier 1 capital

    $ 1,242,565     $ 1,590,068       (21.9 %)    $ 1,344,589       (7.6 %) 

Risk-weighted assets

    $ 11,502,316     $ 14,462,065       (20.5 %)    $ 11,365,270       1.2 % 

Common equity tier 1 capital ratio

      10.8 %      11.0 %        11.8 %   

Tier 1 risk based capital ratio

      10.8 %      11.0 %        11.8 %   

Tier 1 leverage capital ratio

      7.1 %      7.5 %        7.3 %   

Stifel Bank Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 838,002     $ 596,152       40.6 %    $ 788,811       6.2 % 

Tier 1 capital

    $ 838,002     $ 596,152       40.6 %    $ 788,811       6.2 % 

Risk-weighted assets

    $ 5,663,726     $ 4,548,287       24.5 %    $ 6,622,892       (14.5 %) 

Common equity tier 1 capital ratio

      14.8 %      13.1 %        11.9 %   

Tier 1 risk based capital ratio

      14.8 %      13.1 %        11.9 %   

Tier 1 leverage capital ratio

      7.2 %      7.5 %        7.2 %   

Stifel Net Capital (5):

           

Net capital

    $ 446,400     $ 514,500       (13.2 %)    $ 457,900       (2.5 %) 

Excess net capital

    $ 421,100     $ 491,500       (14.3 %)    $ 435,900       (3.4 %) 

 

Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release    Page 7 of 18

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Global Wealth Management - Summary Results of Operations

 

 

     Three Months Ended  
(Unaudited, 000s)    3/31/2024     3/31/2023     % Change     12/31/2023     % Change  

Revenues:

           

Commissions

    $ 121,217     $ 110,191       10.0 %    $ 112,622       7.6 % 

Principal transactions

      60,536       51,064       18.5 %      56,849       6.5 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactional revenues

      181,753       161,255       12.7 %      169,471       7.2 % 

Asset management

      367,450       315,537       16.5 %      330,498       11.2 % 

Net interest

      236,269       281,932       (16.2 %)      257,920       (8.4 %) 

Investment banking (6)

      4,280       4,158       2.9 %      4,562       (6.2 %) 

Other income

      748       (5,696 )      113.1 %      3,577       (79.1 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

      790,500       757,186       4.4 %      766,028       3.2 % 

Non-interest expenses:

           

Compensation and benefits

      389,536       342,423       13.8 %      359,376       8.4 % 

Non-compensation operating expenses

      110,216       98,654       11.7 %      105,292       4.7 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-interest expenses

      499,752       441,077       13.3 %      464,668       7.6 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 290,748     $ 316,109       (8.0 %)    $ 301,360       (3.5 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

As a percentage of net revenues:

           

Compensation and benefits

      49.3 %      45.2 %      410       46.9 %      240  

Non-compensation operating expenses

      13.9 %      13.1 %      80       13.8 %      10  

Income before income taxes

      36.8 %      41.7 %      (490 )      39.3 %      (250 ) 

 

Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release    Page 8 of 18

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Global Wealth Management - Statistical Information

 

 

     As of and for the Three Months Ended  
(Unaudited, 000s, except financial advisors)    3/31/2024     3/31/2023     % Change     12/31/2023     % Change  

Financial advisors (including independent contractors) (7)

      2,356       2,350       0.3 %      2,386       (1.3 %) 

Total client assets

    $ 467,697,000     $ 405,988,000       15.2 %    $ 444,318,000       5.3 % 

Fee-based client assets

    $ 177,108,000     $ 149,541,000       18.4 %    $ 165,301,000       7.1 % 

Transactional assets

    $ 290,589,000     $ 256,447,000       13.3 %    $ 279,017,000       4.1 % 

Secured client lending (8)

    $ 3,353,000     $ 3,393,000       (1.2 %)    $ 3,064,000       9.4 % 

Asset Management Revenue (000s):

           

Private Client Group (9)

    $ 299,027     $ 259,491       15.2 %    $ 275,405       8.6 % 

Asset Management

      36,205       32,241       12.3 %      33,938       6.7 % 

Third-party Bank Sweep Program

      18,314       11,261       62.6 %      8,821       107.6 % 

Other (10)

      13,930       12,576       10.8 %      12,372       12.6 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total asset management revenues

    $ 367,476     $ 315,569       16.4 %    $ 330,536       11.2 % 

Fee-based Assets (millions):

           

Private Client Group (9)

    $ 155,144     $ 131,483       18.0 %    $ 145,513       6.6 % 

Asset Management

      39,214       33,409       17.4 %      36,085       8.7 % 

Elimination (11)

      (17,250 )      (15,351 )      12.4 %      (16,297 )      5.8 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fee-based assets

    $ 177,108     $ 149,541       18.4 %    $ 165,301       7.1 % 

Third-party Bank Sweep Program

    $ 1,172     $ 915       28.1 %    $ 2,044       (42.7 %) 

ROA (bps) (12):

           

Private Client Group (9)

      82.2       82.3         83.0    

Asset Management

      36.9       38.6         37.6    

Third-party Bank Sweep Program

      478.5       303.9         451.2    

Stifel Bancorp Deposits (millions):

           

Smart Rate Deposits

    $ 15,561     $ 10,778       44.4 %    $ 14,465       7.6 % 

Sweep Deposits

      9,771       14,057       (30.5 %)      9,642       1.3 % 

Direct Wealth Management Deposits at Stifel Bancorp

      176       189       (6.9 %)      402       (56.2 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Stifel Bancorp Wealth Management Deposits

      25,508       25,024       1.9 %      24,509       4.1 % 

Other Bank Deposits (13)

      2,046       3,301       (38.0 %)      2,826       (27.6 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Stifel Bancorp Deposits

    $ 27,554     $ 28,325       (2.7 %)    $ 27,335       0.8 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Short-term Treasuries (millions) (14)

    $ 7,698     $ 6,617       16.3 %    $ 7,855       (2.0 %) 

Wealth Management Cash (millions):

           

Stifel Bancorp Wealth Management Deposits

    $ 25,508     $ 25,024       1.9 %    $ 24,509       4.1 % 

Third-party Bank Sweep Program

      1,172       915       28.1 %      2,044       (42.7 %) 

Other Sweep and Third-party Bank Cash

      620       252       146.0 %      324       91.4 % 

Money Market Mutual Funds

      9,879       7,434       32.9 %      9,374       5.4 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Wealth Management Cash

    $ 37,179     $ 33,625       10.6 %    $ 36,251       2.6 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release    Page 9 of 18

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Institutional Group - Summary Results of Operations

 

 

     Three Months Ended  
(Unaudited, 000s)    3/31/2024     3/31/2023     % Change     12/31/2023     % Change  

Revenues:

           

Commissions

    $ 64,259     $ 59,359       8.3 %    $ 60,992       5.4 % 

Principal transactions

      78,478       64,458       21.8 %      97,528       (19.5 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactional revenues

      142,737       123,817       15.3 %      158,520       (10.0 %) 

Capital raising

      90,417       56,658       59.6 %      71,724       26.1 % 

Advisory

      119,252       151,063       (21.1 %)      129,378       (7.8 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment banking

      209,669       207,721       0.9 %      201,102       4.3 % 

Other income (15)

      (1,030 )      1,075       (195.8 %)      (330 )      (212.1 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

      351,376       332,613       5.6 %      359,292       (2.2 %) 

Non-interest expenses:

           

Compensation and benefits

      215,749       205,905       4.8 %      248,970       (13.3 %) 

Non-compensation operating expenses

      98,518       92,988       5.9 %      102,551       (3.9 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-interest expenses

      314,267       298,893       5.1 %      351,521       (10.6 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 37,109     $ 33,720       10.1 %    $ 7,771       377.5 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

As a percentage of net revenues:

           

Compensation and benefits

      61.4 %      61.9 %      (50 )      69.3 %      (790 ) 

Non-compensation operating expenses

      28.0 %      28.0 %      —        28.5 %      (50 ) 

Income before income taxes

      10.6 %      10.1 %      50       2.2 %      840  

 

Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release    Page 10 of 18

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Stifel Bancorp - Financial Information and Credit Metrics

 

 

(Unaudited, 000s)    3/31/2024     3/31/2023     % Change     12/31/2023     % Change  

Stifel Bancorp Financial Information:

           

Total assets

    $ 29,800,815     $ 30,701,371       (2.9 %)    $ 29,722,320       0.3 % 

Total shareholder’s equity

    $ 2,062,271     $ 2,199,821       (6.3 %)    $ 2,154,839       (4.3 %) 

Total loans, net (includes loans held for sale)

    $ 19,484,389     $ 20,935,133       (6.9 %)    $ 19,729,804       (1.2 %) 

Residential real estate

      8,096,975       7,494,788       8.0 %      8,047,647       0.6 % 

Fund banking

      3,129,642       4,623,423       (32.3 %)      3,633,126       (13.9 %) 

Commercial and industrial

      3,541,770       4,755,664       (25.5 %)      3,566,987       (0.7 %) 

Securities-based loans

      2,302,250       2,558,343       (10.0 %)      2,306,455       (0.2 %) 

Construction and land

      1,167,300       644,800       81.0 %      1,034,370       12.9 % 

Commercial real estate

      655,355       663,325       (1.2 %)      660,631       (0.8 %) 

Other

      198,568       159,101       24.8 %      192,251       3.3 % 

Loans held for sale

      534,593       225,365       137.2 %      423,999       26.1 % 

Investment securities

    $ 7,292,490     $ 7,607,385       (4.1 %)    $ 7,439,109       (2.0 %) 

Available-for-sale securities, at fair value

      1,499,982       1,624,458       (7.7 %)      1,551,686       (3.3 %) 

Held-to-maturity securities, at amortized cost

      5,792,508       5,982,927       (3.2 %)      5,887,423       (1.6 %) 

Unrealized losses on available-for-sale securities

      (187,163 )      (196,621 )      (4.8 %)      (175,943 )      6.4 % 

Total deposits

    $ 27,554,411     $ 28,325,327       (2.7 %)    $ 27,334,579       0.8 % 

Demand deposits (interest-bearing)

      27,357,692       27,862,336       (1.8 %)      27,111,072       0.9 % 

Demand deposits (non-interest-bearing)

      196,717       456,091       (56.9 %)      223,505       (12.0 %) 

Certificates of deposit

      2       6,900       nm       2       0.0 % 

Credit Metrics:

           

Allowance for credit losses

    $ 163,936     $ 152,906       7.2 %    $ 161,605       1.4 % 

Allowance as a percentage of retained loans

      0.86 %      0.73 %        0.83 %   

Net charge-offs as a percentage of average loans

      0.01 %      0.00 %        0.04 %   

Total nonperforming assets

    $ 59,429     $ 10,749       452.9 %    $ 45,456       30.7 % 

Nonperforming assets as a percentage of total assets

      0.20 %      0.04 %        0.15 %   

 

Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release    Page 11 of 18

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Stifel Bancorp - Loan and Investment Portfolio

 

 

(Unaudited, millions)    3/31/2024      % of Total
Portfolio		                    

Loan Portfolio

         Commercial Portfolio by Major Sector      

Residential real estate

    $ 8,097        32 %   

Industrials

    $ 873        25 % 

Securities-based loans

      2,302        9 %   

Financials

      860        24 % 

Home equity lines of credit and other

      199        1 %   

Information technology

      541        15 % 
  

 

 

     

 

 

          

Total consumer

      10,598        42 %   

Consumer discretionary

      389        11 % 
  

 

 

     

 

 

          

Fund banking

      3,130        12 %   

REITs

      227        6 % 

Commercial and industrial

      3,542        14 %   

Materials

      167        5 % 

Construction and land

      1,167        5 %   

Healthcare

      164        5 % 

Commercial real estate

      655        3 %   

Hotel, leisure, restaurants

      132        4 % 
  

 

 

     

 

 

          

Total commercial

      8,494        34 %   

Communication services

      80        2 % 
  

 

 

     

 

 

          

Total loan portfolio

      19,092        76 %   

Consumer staples

      72        2 % 
  

 

 

     

 

 

          

Unfunded commitments

      5,961        24 %         
  

 

 

     

 

 

          

Total

    $ 25,053        100 %         
  

 

 

     

 

 

          
        CLO by Major Sector      
       

Healthcare & pharmaceuticals

    $ 568        10 % 

Investment Portfolio

        

High tech industries

      554        10 % 

CLO

    $ 5,758        77 %   

Banking, finance, insurance, & real estate

      511        9 % 

Agency MBS

      840        11 %   

Services: business

      511        9 % 

Corporate bonds

      601        8 %   

Construction & building

      249        4 % 

SBA

      116        2 %   

Chemicals, plastics, & rubber

      242        4 % 

Student loan ARS

      92        1 %   

Hotel, gaming, & leisure

      239        4 % 

CMBS

      70        1 %   

Media: broadcasting & subscription

      236        4 % 

Other

      3        0 %   

Services: consumer

      235        4 % 
  

 

 

     

 

 

          

Total Portfolio

    $ 7,480        100 %   

Telecommunications

      227        4 % 
  

 

 

     

 

 

          

 

Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release    Page 12 of 18

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Loans and Lending Commitments - Allowance for Credit Losses

 

 

     March 31, 2024               
(Unaudited, 000s)    Loans and Lending
Commitments		      ACL      ACL %     Q1 Provision (16)  

Residential real estate

    $ 8,096,975      $ 12,507        0.15 %    $ (1,348 ) 

Fund banking

      3,129,642        8,763        0.28 %      (1,410 ) 

Commercial and industrial

      3,541,770        65,887        1.86 %      1,447  

Securities-based loans

      2,302,250        3,068        0.13 %      33  

Construction and land

      1,167,300        18,589        1.59 %      6,772  

Commercial real estate

      655,355        20,689        3.16 %      (697 ) 

Other

      198,568        710        0.36 %      (239 ) 
  

 

 

     

 

 

       

 

 

  

Loans held for investment, gross

      19,091,860        130,213        0.68 %      4,558  

Loans held for sale

      534,593          
  

 

 

          

Total loans, gross

      19,626,453          

Lending-related commitments (unfunded)

      5,961,182        33,723        0.57 %      410  
  

 

 

     

 

 

       

 

 

  

Loans and lending-related commitments

    $ 25,587,635      $ 163,936        $ 4,968  
  

 

 

     

 

 

       

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release    Page 13 of 18

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Consolidated Net Interest Income

 

 

    Three Months Ended  
    March 31, 2024     March 31, 2023     December 31, 2023  
(Unaudited, millions)   Average
balance		     Interest
income/expense		     Average
interest
rate		     Average
balance		     Interest
income/expense		     Average
interest
rate		     Average
balance		     Interest
income/expense		     Average
interest
rate		  

Interest-earning assets:

                  

Cash and federal funds sold

   $ 4,060.3     $ 54.3       5.35 %    $ 1,989.5     $ 22.7       4.57 %    $ 2,956.9     $ 40.1       5.42 % 

Financial instruments owned

     911.7       4.9       2.13 %      877.7       3.7       1.70 %      962.2       4.0       1.65 % 

Margin balances

     699.8       14.2       8.12 %      831.2       14.9       7.16 %      750.0       15.3       8.14 % 

Investments:

                  

Asset-backed securities

     6,011.1       109.1       7.26 %      6,202.4       98.8       6.37 %      6,079.2       112.4       7.39 % 

Mortgage-backed securities

     916.5       5.2       2.29 %      986.6       5.4       2.18 %      935.5       5.3       2.27 % 

Corporate fixed income securities

     606.5       4.2       2.76 %      637.5       4.1       2.61 %      617.1       4.3       2.78 % 

Other

     4.7       —        2.55 %      4.7       —        2.55 %      4.7       —        2.55 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total investments

     7,538.8       118.5       6.29 %      7,831.2       108.3       5.53 %      7,636.5       122.0       6.39 % 

Loans:

                  

Residential real estate

     8,060.6       67.8       3.37 %      7,446.1       53.5       2.87 %      8,027.0       69.4       3.46 % 

Commercial and industrial

     3,527.5       81.3       9.21 %      4,816.3       94.3       7.83 %      4,073.9       90.5       8.89 % 

Fund banking

     3,418.8       67.8       7.94 %      4,396.4       76.3       6.94 %      4,076.5       80.9       7.94 % 

Securities-based loans

     2,297.1       41.6       7.25 %      2,638.0       42.5       6.44 %      2,318.7       42.5       7.33 % 

Commercial real estate

     658.3       11.9       7.20 %      666.8       10.9       6.57 %      659.3       12.3       7.49 % 

Construction and land

     1,099.9       22.9       8.34 %      612.6       11.5       7.49 %      942.8       20.2       8.57 % 

Loans held for sale

     489.3       9.0       7.36 %      206.3       3.4       6.53 %      254.0       4.7       7.40 % 

Other

     191.7       3.8       7.92 %      153.9       2.7       7.12 %      186.9       3.7       7.90 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total loans

     19,743.2       306.1       6.20 %      20,936.4       295.1       5.64 %      20,539.1       324.2       6.31 % 

Other interest-bearing assets

     755.0       8.8       4.63 %      797.3       6.9       3.45 %      812.3       10.6       5.26 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing assets/ interest income

     33,708.8       506.8       6.01 %      33,263.3       451.6       5.43 %      33,657.0       516.2       6.13 % 

Interest-bearing liabilities:

                  

Senior notes

     1,115.7       12.5       4.48 %      1,114.6       12.5       4.49 %      1,115.5       12.5       4.48 % 

Deposits

     27,607.8       230.1       3.33 %      27,138.0       137.3       2.02 %      27,457.7       218.0       3.18 % 

Other interest-bearing liabilities

     1,385.8       12.1       3.49 %      1,170.5       5.2       1.78 %      1,384.6       13.2       3.81 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing liabilities/ interest expense

   $ 30,109.3       254.7       3.38 %    $ 29,423.1       155.0       2.11 %    $ 29,957.8       243.7       3.25 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

Net interest income/margin

     $ 252.1       2.99 %      $ 296.6       3.57 %      $ 272.5       3.24 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release    Page 14 of 18

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Stifel Bancorp Net Interest Income

 

 

     Three Months Ended  
     March 31, 2024     March 31, 2023     December 31, 2023  
(Unaudited, millions)    Average
balance		      Interest
income/expense		      Average
interest
rate		     Average
balance		      Interest
income/expense		      Average
interest
rate		     Average
balance		      Interest
income/expense		      Average
interest
rate		  

Interest-earning assets:

                         

Cash and federal funds sold

    $ 2,845.9      $ 39.6        5.56 %    $ 916.1      $ 11.2        4.91 %    $ 1,841.8      $ 26.4        5.73 % 

Investments

      7,538.8        118.5        6.29 %      7,831.2        108.3        5.53 %      7,636.5        122.0        6.39 % 

Loans

      19,743.2        306.1        6.20 %      20,936.4        295.1        5.64 %      20,539.1        324.2        6.31 % 

Other interest-bearing assets

      62.7        0.8        4.71 %      57.4        0.6        3.86 %      64.7        0.7        4.55 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total interest-bearing assets/ interest income

    $ 30,190.6      $ 465.0        6.16 %    $ 29,741.1      $ 415.2        5.58 %    $ 30,082.1      $ 473.3        6.29 % 

Interest-bearing liabilities:

                         

Deposits

    $ 27,607.8      $ 230.1        3.33 %    $ 27,138.0      $ 137.3        2.02 %    $ 27,457.7      $ 218.0        3.18 % 

Other interest-bearing liabilities

      55.1        1.0        7.61 %      6.4        0.1        6.62 %      73.2        1.4        7.70 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total interest-bearing liabilities/ interest expense

    $ 27,662.9        231.1        3.34 %    $ 27,144.4        137.4        2.02 %    $ 27,530.9        219.4        3.19 % 
     

 

 

     

 

 

       

 

 

     

 

 

       

 

 

     

 

 

  

Net interest income/margin

       $ 233.9        3.10 %       $ 277.8        3.74 %       $ 253.9        3.38 % 
     

 

 

     

 

 

       

 

 

     

 

 

       

 

 

     

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release    Page 15 of 18

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GAAP to Core Reconciliation

 

 

     Three Months Ended  
(Unaudited, 000s)    3/31/2024     3/31/2023     Change     12/31/2023     Change  

GAAP net revenues

    $ 1,163,038     $ 1,106,793       $ 1,146,379    

Non-GAAP adjustments

      —        (3 )        40    
  

 

 

    

 

 

      

 

 

    

Non-GAAP net revenues

      1,163,038       1,106,790         1,146,419    

GAAP compensation and benefits expense

      679,695       651,190         674,437    

Merger-related (17)

      (5,533 )      (9,253 )        (9,203 )   
  

 

 

    

 

 

      

 

 

    

Non-GAAP compensation and benefits expense

      674,162       641,937         665,234    

GAAP non-compensation operating expenses

      264,652       245,720         265,947    

Merger-related (17)

      (6,621 )      (8,136 )        (7,678 )   
  

 

 

    

 

 

      

 

 

    

Non-GAAP non-compensation operating expenses

      258,031       237,584         258,269    
  

 

 

    

 

 

      

 

 

    

Total merger-related adjustments

      (12,154 )      (17,386 )        (16,921 )   
  

 

 

    

 

 

      

 

 

    

GAAP provision for income taxes

      55,116       52,344         43,511    

Merger-related and other (17)

      3,063       4,337         3,498    
  

 

 

    

 

 

      

 

 

    

Non-GAAP provision for income taxes

      58,179       56,681         47,009    

Financial ratios:

           

Compensation and benefits

      58.0 %      58.0 %      —        58.0 %      —   

Non-compensation operating expenses

      22.2 %      21.5 %      70       22.6 %      (40 ) 

Income before income taxes

      19.8 %      20.5 %      (70 )      19.4 %      40  

Effective tax rate

      25.2 %      24.9 %      30       21.1 %      410  

 

Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release    Page 16 of 18

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Footnotes

 

 

(1)

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

(2)

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

(3)

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

(4)

Return on average tangible common equity (“ROTCE”) is calculated by dividing annualized net income applicable to common shareholders by average tangible common equity or, in the case of non-GAAP ROTCE, calculated by dividing non-GAAP net income applicable to common shareholders by average tangible common equity. Tangible common equity, also a non-GAAP financial measure, equals total common shareholders’ equity less goodwill and identifiable intangible assets and the deferred taxes on goodwill and intangible assets. Average deferred taxes on goodwill and intangible assets was $73.9 million, $62.3 million, and $71.1 million, as of March 31, 2024 and 2023, and December 31, 2023, respectively.

(5)

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

(6)

Includes capital raising and advisory revenues.

(7)

Includes independent contractors of 114, 102, and 108 as of March 31, 2024 and 2023, and December 31, 2023, respectively.

(8)

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

(9)

Includes Private Client Group and Trust Business.

(10)

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

(11)

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

(12)

Return on assets (ROA) is calculated based on prior period-end balances for Private Client Group, period-end balances for Asset Management, and average daily balances for Individual Program Banks. Prior to Q4 2023, ROA for Individual Program Banks was calculated on average quarterly balances. Prior periods have not been restated to reflect the change as the differences are immaterial.

(13)

During the first quarter of 2024, the Company began sweeping certain commercial treasury deposits to third-party banks. The March 31, 2024 balance excludes $1.3 billion of commercial treasury deposits sitting at third-party banks.

(14)

Represents client assets in Treasury Securities with maturities of 52 weeks or less.

(15)

Includes net interest, asset management, and other income.

(16)

Provision for credit losses for the three months ended March 31, 2024 includes a reserve of $0.3 million related to employee retention awards.

(17)

Primarily related to charges attributable to integration-related activities, signing bonuses, amortization of restricted stock awards, debentures, and promissory notes issued as retention, additional earn-out expense, and amortization of intangible assets acquired. These costs were directly related to acquisitions of certain businesses and are not representative of the costs of running the Company’s on-going business.

 

Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release    Page 17 of 18

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Disclaimer and Legal Notice

 

Forward-Looking Statements

This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks, assumptions, and uncertainties, including statements relating to the market opportunity and future business prospects of Stifel Financial Corp., as well as Stifel, Nicolaus & Company, Incorporated and its subsidiaries (collectively, “SF” or the “Company”). These statements can be identified by the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” and similar expressions.

All statements not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. For information about the risks and important factors that could affect the Company’s future results, financial condition and liquidity, see “Risk Factors” in Part I of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Forward-looking statements speak only as to the date they are made. The Company disclaims any intent or obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Use of Non-GAAP Financial Measures

The Company prepares its Consolidated Financial Statements using accounting principles generally accepted in the United States (U.S. GAAP). The Company may disclose certain “non-GAAP financial measures” in the course of its earnings releases, earnings conference calls, financial presentations and otherwise. The Securities and Exchange Commission defines a “non-GAAP financial measure” as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments that effectively exclude, or include, amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. Non-GAAP financial measures disclosed by the Company are provided as additional information to analysts, investors and other stakeholders in order to provide them with greater transparency about, or an alternative method for assessing the Company’s financial condition or operating results. These measures are not in accordance with, or a substitute for U.S. GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever the Company refers to a non-GAAP financial measure, it will also define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the non-GAAP financial measure it references and such comparable U.S. GAAP financial measure.

Legal Notice

This Financial Supplement contains financial, statistical, and business-related information, as well as business and segment trends. The information should be read in conjunction with the Company’s first quarter earnings release issued April 24, 2024.

 

Stifel Financial Corp. Quarterly Financial Supplement | First Quarter 2024 Earnings Release    Page 18 of 18