EX-99.2 3 d852406dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

 

LOGO

 

Second 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

      11  

Stifel Bancorp - Financial Information and Credit Metrics

      12  

Stifel Bancorp - Loan and Investment Portfolio

      13  

Loans and Lending Commitments - Allowance for Credit Losses

      14  

Consolidated Net Interest Income

      15  

Stifel Bancorp Net Interest Income

      16  

GAAP to Core Reconciliation

      17  

Footnotes

      18  

Disclaimer and Legal Notice

      19  

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2024 Earnings Release    Page 1 of 19

LOGO

 

Consolidated Financial Highlights

 

 

     Three Months Ended     Six Months Ended  
(Unaudited, 000s, except per share
information)		    6/30/2024      6/30/2023      % Change     3/31/2024      % Change     6/30/2024      6/30/2023      % Change  

Net revenues

    $ 1,217,932      $ 1,050,721        15.9%     $ 1,163,038        4.7%     $ 2,380,970      $ 2,157,514        10.4%  

Net income

    $ 165,294      $ 134,352        23.0%     $ 163,575        1.1%     $ 328,869      $ 291,891        12.7%  

Preferred dividends

      9,321        9,320        0.0%       9,320        0.0%       18,641        18,640        0.0%  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net income available to common shareholders

    $ 155,973      $ 125,032        24.7%     $ 154,255        1.1%     $ 310,228      $ 273,251        13.5%  

Earnings per diluted common share

    $ 1.50      $ 1.18        27.1%     $ 1.49        0.7%     $ 2.98      $ 2.55        16.9%  

Earnings per diluted common share available to common shareholders

    $ 1.41      $ 1.10        28.2%     $ 1.40        0.7%     $ 2.82      $ 2.38        18.5%  

Non-GAAP financial summary (1):

                      

Net revenues

    $ 1,217,941      $ 1,050,721        15.9%     $ 1,163,038        4.7%     $ 2,380,979      $ 2,157,511        10.4%  

Net income

    $ 185,891      $ 145,576        27.7%     $ 172,666        7.7%     $ 358,557      $ 316,164        13.4%  

Preferred dividends

      9,321        9,320        0.0%       9,320        0.0%       18,641        18,640        0.0%  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net income available to common shareholders

    $ 176,570        136,256        29.6%       163,346        8.1%       339,916        297,524        14.2%  

Earnings per diluted common share

    $ 1.69      $ 1.28        32.0%     $ 1.57        7.6%     $ 3.25      $ 2.76        17.8%  

Earnings per diluted common share available to common shareholders

    $ 1.60      $ 1.20        33.3%     $ 1.49        7.4%     $ 3.09      $ 2.59        19.3%  

Weighted average number of common shares outstanding:

 

                   

Basic

      104,150        107,944        (3.5% )      104,275        (0.1% )      104,217        108,360        (3.8% ) 

Diluted

      110,285        113,864        (3.1% )      109,985        0.3%       110,156        114,658        (3.9% ) 

Period end common shares outstanding

      102,518        104,889        (2.3% )      102,649        (0.1% )      102,518        104,889        (2.3% ) 

Cash dividends declared per common share

    $ 0.42      $ 0.36        16.7%     $ 0.42        0.0%     $ 0.84      $ 0.72        16.7%  

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2024 Earnings Release    Page 2 of 19

LOGO

 

GAAP Consolidated Results of Operations

 

 

     Three Months Ended     Six Months Ended  
(Unaudited, 000s, except per share
information)		    6/30/2024      6/30/2023      % Change     3/31/2024      % Change     6/30/2024      6/30/2023     % Change  

Revenues:

                     

Commissions

    $ 183,317      $ 165,358        10.9%     $ 185,476        (1.2% )    $ 368,793      $ 334,908       10.1%  

Principal transactions

      153,574        105,700        45.3%       139,014        10.5%       292,588        221,222       32.3%  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Transactional revenues

      336,891        271,058        24.3%       324,490        3.8%       661,381        556,130       18.9%  

Capital raising

      101,870        78,950        29.0%       94,697        7.6%       196,567        139,766       40.6%  

Advisory

      131,411        87,875        49.5%       119,252        10.2%       250,663        238,938       4.9%  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Investment banking

      233,281        166,825        39.8%       213,949        9.0%       447,230        378,704       18.1%  

Asset management

      380,757        320,264        18.9%       367,476        3.6%       748,233        635,833       17.7%  

Other income

      16,180        894        nm       4,950        226.9%       21,130        (1,399 )      nm  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Operating revenues

      967,109        759,041        27.4%       910,865        6.2%       1,877,974        1,569,268       19.7%  

Interest revenue

      498,152        482,770        3.2%       506,828        (1.7% )      1,004,980        934,334       7.6%  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total revenues

      1,465,261        1,241,811        18.0%       1,417,693        3.4%       2,882,954        2,503,602       15.2%  

Interest expense

      247,329        191,090        29.4%       254,655        (2.9% )      501,984        346,088       45.0%  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net revenues

      1,217,932        1,050,721        15.9%       1,163,038        4.7%       2,380,970        2,157,514       10.4%  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Non-interest expenses:

                     

Compensation and benefits

      722,719        615,667        17.4%       679,695        6.3%       1,402,414        1,266,857       10.7%  

Occupancy and equipment rental

      89,852        84,604        6.2%       88,712        1.3%       178,564        166,744       7.1%  

Communication and office supplies

      48,181        44,969        7.1%       47,367        1.7%       95,548        91,105       4.9%  

Commissions and floor brokerage

      14,383        14,112        1.9%       15,767        (8.8% )      30,150        28,552       5.6%  

Provision for credit losses

      2,954        7,824        (62.2% )      5,268        (43.9% )      8,222        12,744       (35.5% ) 

Investment banking expenses

      9,253        7,125        29.9%       7,729        19.7%       16,982        13,038       30.3%  

Other operating expenses

      103,696        95,035        9.1%       99,809        3.9%       203,505        187,206       8.7%  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total non-interest expenses

      991,038        869,336        14.0%       944,347        4.9%       1,935,385        1,766,246       9.6%  

Income before income taxes

      226,894        181,385        25.1%       218,691        3.8%       445,585        391,268       13.9%  

Provision for income taxes

      61,600        47,033        31.0%       55,116        11.8%       116,716        99,377       17.4%  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net income

      165,294        134,352        23.0%       163,575        1.1%       328,869        291,891       12.7%  

Preferred dividends

      9,321        9,320        0.0%       9,320        0.0%       18,641        18,640       0.0%  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net income available to common shareholders

    $ 155,973      $ 125,032        24.7%     $ 154,255        1.1%     $ 310,228      $ 273,251       13.5%  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Earnings per common share:

                     

Basic

    $ 1.50      $ 1.16        29.3%     $ 1.48        1.4%     $ 2.98      $ 2.52       18.3%  

Diluted

    $ 1.41      $ 1.10        28.2%     $ 1.40        0.7%     $ 2.82      $ 2.38       18.5%  

Weighted average number of common shares outstanding:

 

                  

Basic

      104,150        107,944        (3.5% )      104,275        (0.1% )      104,217        108,360       (3.8% ) 

Diluted

      110,285        113,864        (3.1% )      109,985        0.3%       110,156        114,658       (3.9% ) 

Cash dividends declared per common share

    $ 0.42      $ 0.36        16.7%     $ 0.42        0.0%     $ 0.84      $ 0.72       16.7%  

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2024 Earnings Release    Page 3 of 19

LOGO

 

Non-GAAP Consolidated Results of Operations (1)

 

 

     Three Months Ended     Six Months Ended  
(Unaudited, 000s, except per share
information)		    6/30/2024      6/30/2023      % Change     3/31/2024      % Change     6/30/2024      6/30/2023     % Change  

Revenues:

                     

Commissions

    $ 183,317      $ 165,358        10.9 %    $ 185,476        (1.2 %)    $ 368,793      $ 334,908       10.1 % 

Principal transactions

      153,583        105,700        45.3 %      139,014        10.5 %      292,597        221,222       32.3 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Transactional revenues

      336,900        271,058        24.3 %      324,490        3.8 %      661,390        556,130       18.9 % 

Capital raising

      101,870        78,950        29.0 %      94,697        7.6 %      196,567        139,766       40.6 % 

Advisory

      131,411        87,875        49.5 %      119,252        10.2 %      250,663        238,938       4.9 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Investment banking

      233,281        166,825        39.8 %      213,949        9.0 %      447,230        378,704       18.1 % 

Asset management

      380,757        320,264        18.9 %      367,476        3.6 %      748,233        635,833       17.7 % 

Other income

      16,180        894        nm       4,950        226.9 %      21,130        (1,399 )      nm  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Operating revenues

      967,118        759,041        27.4 %      910,865        6.2 %      1,877,983        1,569,268       19.7 % 

Interest revenue

      498,152        482,770        3.2 %      506,828        (1.7 %)      1,004,980        934,334       7.6 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total revenues

      1,465,270        1,241,811        18.0 %      1,417,693        3.4 %      2,882,963        2,503,602       15.2 % 

Interest expense

      247,329        191,090        29.4 %      254,655        (2.9 %)      501,984        346,091       45.0 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net revenues

      1,217,941        1,050,721        15.9 %      1,163,038        4.7 %      2,380,979        2,157,511       10.4 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Non-interest expenses:

                     

Compensation and benefits

      706,994        609,144        16.1 %      674,162        4.9 %      1,381,156        1,251,081       10.4 % 

Occupancy and equipment rental

      89,727        84,579        6.1 %      88,665        1.2 %      178,392        166,618       7.1 % 

Communication and office supplies

      48,148        44,965        7.1 %      47,364        1.7 %      95,512        91,099       4.8 % 

Commissions and floor brokerage

      14,383        14,112        1.9 %      15,767        (8.8 %)      30,150        28,552       5.6 % 

Provision for credit losses

      2,954        7,824        (62.2 %)      5,268        (43.9 %)      8,222        12,744       (35.5 %) 

Investment banking expenses

      9,253        7,125        29.9 %      7,729        19.7 %      16,982        13,038       30.3 % 

Other operating expenses

      95,806        86,443        10.8 %      93,238        2.8 %      189,044        170,581       10.8 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total non-interest expenses

      967,265        854,192        13.2 %      932,193        3.8 %      1,899,458        1,733,713       9.6 % 

Income before income taxes

      250,676        196,529        27.6 %      230,845        8.6 %      481,521        423,798       13.6 % 

Provision for income taxes

      64,785        50,953        27.1 %      58,179        11.4 %      122,964        107,634       14.2 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net income

      185,891        145,576        27.7 %      172,666        7.7 %      358,557        316,164       13.4 % 

Preferred dividends

      9,321        9,320        0.0 %      9,320        0.0 %      18,641        18,640       0.0 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net income available to common shareholders

    $ 176,570      $ 136,256        29.6 %    $ 163,346        8.1 %    $ 339,916      $ 297,524       14.2 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Earnings per common share:

                     

Basic

    $ 1.70      $ 1.26        34.9 %    $ 1.57        8.3 %    $ 3.26      $ 2.75       18.5 % 

Diluted

    $ 1.60      $ 1.20        33.3 %    $ 1.49        7.4 %    $ 3.09      $ 2.59       19.3 % 

Weighted average number of common shares outstanding:

 

                  

Basic

      104,150        107,944        (3.5 %)      104,275        (0.1 %)      104,217        108,360       (3.8 %) 

Diluted

      110,285        113,864        (3.1 %)      109,985        0.3 %      110,156        114,658       (3.9 %) 

Cash dividends declared per common share

    $ 0.42      $ 0.36        16.7 %    $ 0.42        0.0 %    $ 0.84      $ 0.72       16.7 % 

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2024 Earnings Release    Page 4 of 19

LOGO

 

Consolidated Financial Summary

 

 

     Three Months Ended     Six Months Ended  
(Unaudited, 000s)    6/30/2024     6/30/2023     % Change     3/31/2024     % Change     6/30/2024     6/30/2023     % Change  

Net revenues:

                 

Global Wealth Management

    $ 801,135     $ 758,190       5.7 %    $ 790,500       1.3 %    $ 1,591,635     $ 1,515,376       5.0 % 

Institutional Group

      390,721       277,524       40.8 %      351,376       11.2 %      742,097       610,137       21.6 % 

Other

      26,076       15,007       73.8 %      21,162       23.2 %      47,238       32,001       47.6 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenues

    $ 1,217,932     $ 1,050,721       15.9 %    $ 1,163,038       4.7 %    $ 2,380,970     $ 2,157,514       10.4 % 

Operating expenses:

                 

Global Wealth Management

    $ 501,962     $ 458,286       9.5 %    $ 499,752       0.4 %    $ 1,001,714     $ 899,363       11.4 % 

Institutional Group

      341,908       289,117       18.3 %      314,267       8.8 %      656,175       588,004       11.6 % 

Other

      147,168       121,933       20.7 %      130,328       12.9 %      277,496       278,879       (0.5 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

    $ 991,038     $ 869,336       14.0 %    $ 944,347       4.9 %    $ 1,935,385     $ 1,766,246       9.6 % 

Operating contribution:

                 

Global Wealth Management

    $ 299,173     $ 299,904       (0.2 %)    $ 290,748       2.9 %    $ 589,921     $ 616,013       (4.2 %) 

Institutional Group

      48,813       (11,593 )      521.1 %      37,109       31.5 %      85,922       22,133       288.2 % 

Other

      (121,092 )      (106,926 )      13.2 %      (109,166 )      10.9 %      (230,258 )      (246,878 )      (6.7 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 226,894     $ 181,385       25.1 %    $ 218,691       3.8 %    $ 445,585     $ 391,268       13.9 % 

Financial ratios:

                 

Compensation and benefits

      59.3 %      58.6 %      70       58.4 %      90       58.9 %      58.7 %      20  

Non-compensation operating expenses

      22.1 %      24.1 %      (200 )      22.8 %      (70 )      22.4 %      23.2 %      (80 ) 

Income before income taxes

      18.6 %      17.3 %      130       18.8 %      (20 )      18.7 %      18.1 %      60  

Effective tax rate

      27.1 %      25.9 %      120       25.2 %      190       26.2 %      25.4 %      80  

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2024 Earnings Release    Page 5 of 19

LOGO

 

Consolidated Financial Information and Metrics

 

 

     As of and for the Three Months Ended  
(Unaudited, 000s, except per share data)    6/30/2024     6/30/2023     % Change     3/31/2024     % Change  

Financial Information:

           

Total assets

    $ 37,809,278     $ 37,298,239       1.4 %    $ 38,258,280       (1.2 %) 

Total shareholders’ equity

    $ 5,398,207     $ 5,342,987       1.0 %    $ 5,273,941       2.4 % 

Total common equity

    $ 4,713,207     $ 4,657,987       1.2 %    $ 4,588,941       2.7 % 

Goodwill and intangible assets

    $ (1,509,642 )    $ (1,509,431 )      0.0 %    $ (1,515,588 )      (0.4 %) 

DTL on goodwill and intangible assets

    $ 76,805     $ 65,651       17.0 %    $ 74,841       2.6 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Tangible common equity

    $ 3,280,370     $ 3,214,207       2.1 %    $ 3,148,194       4.2 % 

Preferred equity

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

Financial Metrics:

           

Book value per common share (2)

    $ 45.97     $ 44.41       3.5 %    $ 44.71       2.8 % 

Tangible book value per common share (2)

    $ 32.00     $ 30.64       4.4 %    $ 30.67       4.3 % 

Return on common equity (3)

      13.4 %      10.7 %        13.5 %   

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

      15.1 %      11.6 %        14.3 %   

Return on tangible common equity (4)

      19.3 %      15.5 %        19.7 %   

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

      21.9 %      16.8 %        20.9 %   

Pre-tax margin on net revenues

      18.6 %      17.3 %        18.8 %   

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

      20.6 %      18.7 %        19.8 %   

Effective tax rate

      27.1 %      25.9 %        25.2 %   

Non-GAAP effective tax rate (1)

      25.8 %      25.9 %        25.2 %   

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2024 Earnings Release    Page 6 of 19

LOGO

 

Regulatory Capital

 

 

(Unaudited, 000s)    6/30/2024     6/30/2023     % Change     3/31/2024     % Change  

SF Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 3,359,436     $ 3,314,189       1.4 %    $ 3,225,964       4.1 % 

Tier 1 capital

    $ 4,044,436     $ 3,999,189       1.1 %    $ 3,910,964       3.4 % 

Risk-weighted assets

    $ 22,737,181     $ 23,164,596       (1.8 %)    $ 22,588,330       0.7 % 

Common equity tier 1 capital ratio

      14.8 %      14.3 %        14.3 %   

Tier 1 risk based capital ratio

      17.8 %      17.3 %        17.3 %   

Tier 1 leverage capital ratio

      11.1 %      11.1 %        10.6 %   

Stifel Bank & Trust Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 1,268,458     $ 1,513,202       (16.2 %)    $ 1,242,565       2.1 % 

Tier 1 capital

    $ 1,268,458     $ 1,513,202       (16.2 %)    $ 1,242,565       2.1 % 

Risk-weighted assets

    $ 11,622,832     $ 13,967,683       (16.8 %)    $ 11,502,316       1.0 % 

Common equity tier 1 capital ratio

      10.9 %      10.8 %        10.8 %   

Tier 1 risk based capital ratio

      10.9 %      10.8 %        10.8 %   

Tier 1 leverage capital ratio

      7.1 %      7.5 %        7.1 %   

Stifel Bank Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 742,135     $ 639,967       16.0 %    $ 838,002       (11.4 %) 

Tier 1 capital

    $ 742,135     $ 639,967       16.0 %    $ 838,002       (11.4 %) 

Risk-weighted assets

    $ 5,662,622     $ 5,145,958       10.0 %    $ 5,663,726       (0.0 %) 

Common equity tier 1 capital ratio

      13.1 %      12.4 %        14.8 %   

Tier 1 risk based capital ratio

      13.1 %      12.4 %        14.8 %   

Tier 1 leverage capital ratio

      7.1 %      7.1 %        7.2 %   

Stifel Net Capital (5):

           

Net capital

    $ 455,400     $ 456,500       (0.2 %)    $ 446,400       2.0 % 

Excess net capital

    $ 432,600     $ 433,900       (0.3 %)    $ 421,100       2.7 % 

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2024 Earnings Release    Page 7 of 19

LOGO

 

Global Wealth Management - Summary Results of Operations

 

 

     Three Months Ended     Six Months Ended  
(Unaudited, 000s)    6/30/2024     6/30/2023     % Change     3/31/2024     % Change     6/30/2024     6/30/2023     % Change  

Revenues:

                 

Commissions

    $ 121,465     $ 109,836       10.6 %    $ 121,217       0.2 %    $ 242,682     $ 220,027       10.3 % 

Principal transactions

      55,843       48,122       16.0 %      60,536       (7.8 %)      116,379       99,186       17.3 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactional revenues

      177,308       157,958       12.3 %      181,753       (2.4 %)      359,061       319,213       12.5 % 

Asset management

      380,737       320,238       18.9 %      367,450       3.6 %      748,187       635,775       17.7 % 

Net interest

      236,281       277,345       (14.8 %)      236,269       0.0 %      472,550       559,277       (15.5 %) 

Investment banking (6)

      5,780       4,065       42.2 %      4,280       35.0 %      10,060       8,223       22.3 % 

Other income

      1,029       (1,416 )      172.7 %      748       37.6 %      1,777       (7,112 )      125.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

      801,135       758,190       5.7 %      790,500       1.3 %      1,591,635       1,515,376       5.0 % 

Non-interest expenses:

                 

Compensation and benefits

      392,941       354,086       11.0 %      389,536       0.9 %      782,477       696,509       12.3 % 

Non-compensation operating expenses

      109,021       104,200       4.6 %      110,216       (1.1 %)      219,237       202,854       8.1 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-interest expenses

      501,962       458,286       9.5 %      499,752       0.4 %      1,001,714       899,363       11.4 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 299,173     $ 299,904       (0.2 %)    $ 290,748       2.9 %    $ 589,921     $ 616,013       (4.2 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

As a percentage of net revenues:

                 

Compensation and benefits

      49.0 %      46.7 %      230       49.3 %      (30 )      49.2 %      46.0 %      320  

Non-compensation operating expenses

      13.7 %      13.7 %      —        13.9 %      (20 )      13.7 %      13.3 %      40  

Income before income taxes

      37.3 %      39.6 %      (230 )      36.8 %      50       37.1 %      40.7 %      (360 ) 

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2024 Earnings Release    Page 8 of 19

LOGO

 

Global Wealth Management - Statistical Information

 

 

     As of and for the Three Months Ended  
(Unaudited, 000s, except financial advisors)    6/30/2024     6/30/2023     % Change     3/31/2024     % Change  

Financial advisors (including independent contractors) (7)

      2,359       2,369       (0.4 %)      2,356       0.1 % 

Total client assets

    $ 474,137,000     $ 417,669,000       13.5 %    $ 467,697,000       1.4 % 

Fee-based client assets

    $ 179,749,000     $ 154,538,000       16.3 %    $ 177,108,000       1.5 % 

Transactional assets

    $ 294,388,000     $ 263,131,000       11.9 %    $ 290,589,000       1.3 % 

Secured client lending (8)

    $ 3,250,000     $ 3,163,000       2.8 %    $ 3,353,000       (3.1 %) 

Asset Management Revenue (000s):

           

Private Client Group (9)

    $ 317,616     $ 266,510       19.2 %    $ 299,027       6.2 % 

Asset Management

      37,556       33,154       13.3 %      36,205       3.7 % 

Third-party Bank Sweep Program

      11,319       7,452       51.9 %      18,314       (38.2 %) 

Other (10)

      14,266       13,148       8.5 %      13,930       2.4 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total asset management revenues

    $ 380,757     $ 320,264       18.9 %    $ 367,476       3.6 % 

Fee-based Assets (millions):

           

Private Client Group (9)

    $ 157,124     $ 135,606       15.9 %    $ 155,144       1.3 % 

Asset Management

      39,714       34,766       14.2 %      39,214       1.3 % 

Elimination (11)

      (17,089 )      (15,834 )      7.9 %      (17,250 )      (0.9 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fee-based assets

    $ 179,749     $ 154,538       16.3 %    $ 177,108       1.5 % 

Third-party Bank Sweep Program

    $ 820     $ 657       24.8 %    $ 1,172       (30.0 %) 

ROA (bps) (12):

           

Private Client Group (9)

      81.9       81.1         82.2    

Asset Management

      37.8       38.1         36.9    

Third-party Bank Sweep Program

      487.3       362.3         478.5    

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2024 Earnings Release    Page 9 of 19

LOGO

 

Global Wealth Management - Statistical Information (Cont.)

 

 

     As of and for the Three Months Ended  
(Unaudited, millions)    6/30/2024      6/30/2023      % Change     3/31/2024      % Change  

Stifel Bancorp Deposits:

              

Smart Rate Deposits

    $ 15,819      $ 11,858        33.4%     $ 15,561        1.7%  

Sweep Deposits

      9,148        12,293        (25.6%)       9,771        (6.4%)  

Direct Wealth Management Deposits at Stifel Bancorp

      225        319        (29.5%)       176        27.8%  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total Stifel Bancorp Wealth Management Deposits

      25,192        24,470        3.0 %      25,508        (1.2 %) 

Other Bank Deposits

      1,948        2,535        (23.2%)       2,046        (4.8%)  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total Stifel Bancorp Deposits

    $ 27,140      $ 27,005        0.5 %    $ 27,554        (1.5 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Short-term Treasuries (13)

    $ 8,136      $ 7,104        14.5 %    $ 7,698        5.7 % 

Third-party Commercial Treasury Deposits (14)

    $ 1,539      $ —         nm     $ 1,295        18.8 % 

Wealth Management Cash:

              

Stifel Bancorp Wealth Management Deposits

    $ 25,192      $ 24,470        3.0%     $ 25,508        (1.2%)  

Third-party Bank Sweep Program

      820        657        24.8%       1,172        (30.0%)  

Third-party Treasury

      153        —         nm       222        (31.1%)  

Other Sweep Cash

      417        284        46.8%       398        4.8%  

Money Market Mutual Funds

      10,530        8,034        31.1%       9,879        6.6%  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total Wealth Management Cash

    $ 37,112      $ 33,445        11.0 %    $ 37,179        (0.2 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Client money market and insured product (15)

    $ 26,204      $ 25,092        4.4 %    $ 26,902        (2.6 %) 

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2024 Earnings Release    Page 10 of 19

LOGO

 

Institutional Group - Summary Results of Operations

 

 

     Three Months Ended     Six Months Ended  
(Unaudited, 000s)    6/30/2024     6/30/2023     % Change     3/31/2024     % Change     6/30/2024     6/30/2023     % Change  

Revenues:

                 

Commissions

    $ 61,852     $ 55,522       11.4 %    $ 64,259       (3.7 %)    $ 126,111     $ 114,881       9.8 % 

Principal transactions

      97,740       57,578       69.8 %      78,478       24.5 %      176,218       122,036       44.4 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactional revenues

      159,592       113,100       41.1 %      142,737       11.8 %      302,329       236,917       27.6 % 

Capital raising

      96,090       74,886       28.3 %      90,417       6.3 %      186,507       131,544       41.8 % 

Advisory

      131,411       87,875       49.5 %      119,252       10.2 %      250,663       238,938       4.9 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment banking

      227,501       162,761       39.8 %      209,669       8.5 %      437,170       370,482       18.0 % 

Other income (16)

      3,628       1,663       118.2 %      (1,030 )      452.2 %      2,598       2,738       (5.1 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

      390,721       277,524       40.8 %      351,376       11.2 %      742,097       610,137       21.6 % 

Non-interest expenses:

                 

Compensation and benefits

      239,036       194,158       23.1 %      215,749       10.8 %      454,785       400,063       13.7 % 

Non-compensation operating expenses

      102,872       94,959       8.3 %      98,518       4.4 %      201,390       187,941       7.2 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-interest expenses

      341,908       289,117       18.3 %      314,267       8.8 %      656,175       588,004       11.6 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income/(loss) before income taxes

    $ 48,813     $ (11,593 )      521.1 %    $ 37,109       31.5 %    $ 85,922     $ 22,133       288.2 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

As a percentage of net revenues:

                 

Compensation and benefits

      61.2 %      70.0 %      (880 )      61.4 %      (20 )      61.3 %      65.6 %      (430 ) 

Non-compensation operating expenses

      26.3 %      34.2 %      (790 )      28.0 %      (170 )      27.1 %      30.8 %      (370 ) 

Income before income taxes

      12.5 %      (4.2 %)      1,670       10.6 %      190       11.6 %      3.6 %      800  

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2024 Earnings Release    Page 11 of 19

LOGO

 

Stifel Bancorp - Financial Information and Credit Metrics

 

 

(Unaudited, 000s)    6/30/2024     6/30/2023     % Change     3/31/2024     % Change  

Stifel Bancorp Financial Information:

           

Total assets

    $ 29,325,680     $ 29,260,431       0.2 %    $ 29,800,815       (1.6 %) 

Total shareholder’s equity

    $ 1,996,585     $ 2,148,221       (7.1 %)    $ 2,062,271       (3.2 %) 

Total loans, net (includes loans held for sale)

    $ 19,819,771     $ 20,562,492       (3.6 %)    $ 19,484,389       1.7 % 

Residential real estate

      8,253,851       7,708,506       7.1 %      8,096,975       1.9 % 

Fund banking

      3,346,785       4,349,541       (23.1 %)      3,129,642       6.9 % 

Commercial and industrial

      3,689,379       4,471,031       (17.5 %)      3,541,770       4.2 % 

Securities-based loans

      2,253,045       2,399,328       (6.1 %)      2,302,250       (2.1 %) 

Construction and land

      1,198,395       772,571       55.1 %      1,167,300       2.7 % 

Commercial real estate

      608,911       677,521       (10.1 %)      655,355       (7.1 %) 

Other

      204,392       154,469       32.3 %      198,568       2.9 % 

Loans held for sale

      472,804       224,017       111.1 %      534,593       (11.6 %) 

Investment securities

    $ 7,641,586     $ 7,532,175       1.5 %    $ 7,292,490       4.8 % 

Available-for-sale securities, at fair value

      1,583,477       1,582,418       0.1 %      1,499,982       5.6 % 

Held-to-maturity securities, at amortized cost

      6,058,109       5,949,757       1.8 %      5,792,508       4.6 % 

Unrealized losses on available-for-sale securities

      (187,259 )      (215,038 )      (12.9 %)      (187,163 )      0.1 % 

Total deposits

    $ 27,139,753     $ 27,004,807       0.5 %    $ 27,554,411       (1.5 %) 

Demand deposits (interest-bearing)

      26,754,212       26,744,730       0.0 %      27,357,692       (2.2 %) 

Demand deposits (non-interest-bearing)

      304,795       260,075       17.2 %      196,717       54.9 % 

Certificates of deposit

      80,746       2       nm       2       nm  

Credit Metrics:

           

Allowance for credit losses

    $ 164,959     $ 160,132       3.0 %    $ 163,936       0.6 % 

Allowance as a percentage of retained loans

      0.84 %      0.78 %        0.86 %   

Net charge-offs as a percentage of average loans

      0.01 %      0.00 %        0.01 %   

Total nonperforming assets

    $ 85,247     $ 11,420       646.5 %    $ 59,429       43.4 % 

Nonperforming assets as a percentage of total assets

      0.29 %      0.04 %        0.20 %   

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2024 Earnings Release    Page 12 of 19

LOGO

 

Stifel Bancorp - Loan and Investment Portfolio

 

 

(Unaudited, millions)    6/30/2024      % of Total
Portfolio		                    

Loan Portfolio

         Commercial Portfolio by Major Sector      

Residential real estate

    $ 8,254        33 %   

Industrials

    $ 911        25 % 

Securities-based loans

      2,253        9 %   

Financials

      881        24 % 

Home equity lines of credit and other

      205        1 %   

Information technology

      599        16 % 
  

 

 

     

 

 

          

Total consumer

      10,712        43 %   

Consumer discretionary

      392        11 % 
  

 

 

     

 

 

          

Commercial and industrial

      3,689        15 %   

REITs

      219        6 % 

Fund banking

      3,347        13 %   

Materials

      211        6 % 

Construction and land

      1,198        5 %   

Healthcare

      159        4 % 

Commercial real estate

      609        2 %   

Hotel, leisure, restaurants

      131        4 % 
  

 

 

     

 

 

          

Total commercial

      8,843        35 %   

Communication services

      84        2 % 
  

 

 

     

 

 

          

Total loan portfolio

      19,555        78 %   

Consumer staples

      67        2 % 
  

 

 

     

 

 

          

Unfunded commitments

      5,572        22 %         
  

 

 

     

 

 

          

Total

    $ 25,127        100 %         
  

 

 

     

 

 

          
        CLO by Major Sector      
       

High tech industries

    $ 591        10 % 

Investment Portfolio

        

Healthcare & pharmaceuticals

      564        9 % 

CLO

    $ 6,022        77 %   

Banking, finance, insurance, & real estate

      544        9 % 

Agency MBS

      974        12 %   

Services: business

      534        9 % 

Corporate bonds

      563        7 %   

Construction & building

      273        5 % 

SBA

      106        1 %   

Hotel, gaming, & leisure

      254        4 % 

Student loan ARS

      91        1 %   

Chemicals, plastics, & rubber

      251        4 % 

CMBS

      70        1 %   

Services: consumer

      240        4 % 

Other

      3        0 %   

Media: broadcasting & subscription

      229        4 % 
  

 

 

     

 

 

          

Total Portfolio

    $ 7,829        100 %   

Telecommunications

      224        4 % 
  

 

 

     

 

 

          

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2024 Earnings Release    Page 13 of 19

LOGO

 

Loans and Lending Commitments - Allowance for Credit Losses

 

 

     June 30, 2024               
(Unaudited, 000s)    Loans and Lending
Commitments		      ACL      ACL %     Q2 Provision  

Residential real estate

    $ 8,253,851      $ 11,242        0.1 %    $ (1,265 ) 

Fund banking

      3,346,785        12,179        0.4 %      3,416  

Commercial and industrial

      3,689,379        76,354        2.1 %      10,708  

Securities-based loans

      2,253,045        2,813        0.1 %      (255 ) 

Construction and land

      1,198,395        16,379        1.4 %      (2,210 ) 

Commercial real estate

      608,911        15,312        2.5 %      (3,687 ) 

Other

      204,392        835        0.4 %      125  
  

 

 

     

 

 

       

 

 

  

Loans held for investment, gross

      19,554,758        135,114        0.7 %      6,832  

Loans held for sale

      472,804          
  

 

 

          

Total loans, gross

      20,027,562          

Lending commitments

      5,572,281        29,845        0.5 %      (3,878 ) 
  

 

 

     

 

 

       

 

 

  

Loans and lending commitments

    $ 25,599,843      $ 164,959        $ 2,954  
  

 

 

     

 

 

       

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2024 Earnings Release    Page 14 of 19

LOGO

 

Consolidated Net Interest Income

 

 

    Three Months Ended  
    June 30, 2024     June 30, 2023     March 31, 2024  
(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

   $ 2,833.7     $ 37.8       5.34 %    $ 2,015.4     $ 25.0       4.96 %    $ 4,060.3     $ 54.3       5.35 % 

Financial instruments owned

     1,165.7       6.3       2.18 %      864.7       4.6       2.14 %      911.7       4.9       2.13 % 

Margin balances

     694.3       14.0       8.04 %      795.6       15.4       7.72 %      699.8       14.2       8.12 % 

Investments:

                  

Asset-backed securities

     5,982.6       108.1       7.23 %      6,162.8       106.5       6.91 %      6,011.1       109.1       7.26 % 

Mortgage-backed securities

     929.8       5.6       2.41 %      974.9       5.4       2.20 %      916.5       5.2       2.29 % 

Corporate fixed income securities

     589.8       4.1       2.77 %      622.5       4.3       2.77 %      606.5       4.2       2.76 % 

Other

     4.8       —        2.55 %      4.7       —        2.55 %      4.7       —        2.55 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total investments

     7,507.0       117.8       6.28 %      7,764.9       116.2       5.99 %      7,538.8       118.5       6.29 % 

Loans:

                  

Residential real estate

     8,182.5       71.0       3.47 %      7,605.8       57.2       3.01 %      8,060.6       67.8       3.37 % 

Commercial and industrial

     3,643.7       79.9       8.77 %      4,715.2       96.7       8.21 %      3,527.5       81.3       9.21 % 

Fund banking

     3,299.5       67.0       8.13 %      4,403.6       82.9       7.53 %      3,418.8       67.8       7.94 % 

Securities-based loans

     2,292.4       41.6       7.26 %      2,469.1       43.0       6.96 %      2,297.1       41.6       7.25 % 

Commercial real estate

     637.6       11.5       7.20 %      688.3       13.1       7.59 %      658.3       11.9       7.20 % 

Construction and land

     1,181.5       24.9       8.42 %      702.3       14.2       8.07 %      1,099.9       22.9       8.34 % 

Loans held for sale

     462.7       11.2       9.68 %      178.9       3.0       6.72 %      489.3       9.0       7.36 % 

Other

     206.2       4.0       7.77 %      161.6       2.9       7.65 %      191.7       3.8       7.92 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total loans

     19,906.1       311.1       6.25 %      20,924.8       313.0       5.98 %      19,743.2       306.1       6.20 % 

Other interest-bearing assets

     860.4       11.1       5.16 %      718.2       8.6       4.76 %      755.0       8.8       4.63 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing assets/interest income

     32,967.2       498.1       6.04 %      33,083.6       482.8       5.84 %      33,708.8       506.8       6.01 % 

Interest-bearing liabilities:

                  

Senior notes

     1,116.0       12.5       4.48 %      1,114.9       12.5       4.49 %      1,115.7       12.5       4.48 % 

Deposits

     26,758.7       220.3       3.29 %      27,223.3       171.4       2.52 %      27,607.8       230.1       3.33 % 

Other interest-bearing liabilities

     1,461.1       14.5       3.98 %      1,181.3       7.2       2.45 %      1,385.8       12.1       3.49 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing liabilities/interest expense

   $ 29,335.8       247.3       3.37 %    $ 29,519.5       191.1       2.59 %    $ 30,109.3       254.7       3.38 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

Net interest income/margin

     $ 250.8       3.04 %      $ 291.7       3.53 %      $ 252.1       2.99 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2024 Earnings Release    Page 15 of 19

LOGO

 

Stifel Bancorp Net Interest Income

 

 

     Three Months Ended  
     June 30, 2024     June 30, 2023     March 31, 2024  
(Unaudited, millions)    Average
balance		      Interest
income/expense		      Average
interest
rate		     Average
balance		      Interest
income/expense		      Average
interest
rate		     Average
balance		      Interest
income/expense		      Average
interest
rate		  

Interest-earning assets:

                         

Cash and federal funds sold

    $ 1,765.4      $ 25.0        5.67 %    $ 1,128.4      $ 15.0        5.31 %    $ 2,845.9      $ 39.6        5.56 % 

Investments

      7,507.0        117.8        6.28 %      7,764.9        116.2        5.99 %      7,538.8        118.5        6.29 % 

Loans

      19,906.1        311.1        6.25 %      20,924.8        313.0        5.98 %      19,743.2        306.1        6.20 % 

Other interest-bearing assets

      66.7        1.0        5.71 %      62.9        0.7        4.13 %      62.7        0.8        4.71 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total interest-bearing assets/interest income

    $ 29,245.2      $ 454.9        6.22 %    $ 29,881.0      $ 444.9        5.96 %    $ 30,190.6      $ 465.0        6.16 % 

Interest-bearing liabilities:

                         

Deposits

    $ 26,758.7      $ 220.3        3.29 %    $ 27,223.3      $ 171.4        2.52 %    $ 27,607.8      $ 230.1        3.33 % 

Other interest-bearing liabilities

      90.1        1.7        7.44 %      0.8        0.1        50.62 %      55.1        1.0        7.61 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total interest-bearing liabilities/interest expense

    $ 26,848.8        222.0        3.31 %    $ 27,224.1        171.5        2.52 %    $ 27,662.9        231.1        3.34 % 
     

 

 

     

 

 

       

 

 

     

 

 

       

 

 

     

 

 

  

Net interest income/margin

       $ 232.9        3.19 %       $ 273.4        3.66 %       $ 233.9        3.10 % 
     

 

 

     

 

 

       

 

 

     

 

 

       

 

 

     

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2024 Earnings Release    Page 16 of 19

LOGO

 

GAAP to Core Reconciliation

 

 

     Three Months Ended     Six Months Ended  
(Unaudited, 000s)    6/30/2024     6/30/2023     Change     3/31/2024     Change     6/30/2024     6/30/2023     Change  

GAAP net revenues

    $ 1,217,932     $ 1,050,721       $ 1,163,038       $ 2,380,970     $ 2,157,514    

Non-GAAP adjustments

      9       —          —         9       (3 )   
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP net revenues

      1,217,941       1,050,721         1,163,038         2,380,979       2,157,511    

GAAP compensation and benefits expense

      722,719       615,667         679,695         1,402,414       1,266,857    

Merger-related (17)

      (5,764 )      (6,523 )        (5,533 )        (11,297 )      (15,776 )   

Restructuring and severance (18)

      (9,961 )      —          —          (9,961 )      —     
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Total non-GAAP adjustments

      (15,725 )      (6,523 )        (5,533 )        (21,258 )      (15,776 )   
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP compensation and benefits expense

      706,994       609,144         674,162         1,381,156       1,251,081    

GAAP non-compensation operating expenses

      268,319       253,669         264,652         532,971       499,389    

Merger-related (17)

      (8,048 )      (8,621 )        (6,621 )        (14,669 )      (16,757 )   
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP non-compensation operating expenses

      260,271       245,048         258,031         518,302       482,632    
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Total adjustments

      (23,782 )      (15,144 )        (12,154 )        (35,936 )      (32,530 )   
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

GAAP provision for income taxes

      61,600       47,033         55,116         116,716       99,377    

Merger-related and other (19)

      3,185       3,920         3,063         6,248       8,257    
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP provision for income taxes

      64,785       50,953         58,179         122,964       107,634    

Financial ratios:

                 

Compensation and benefits

      58.0 %      58.0 %      —        58.0 %      —        58.0 %      58.0 %      —   

Non-compensation operating expenses

      21.4 %      23.3 %      (190 )      22.2 %      (80 )      21.8 %      22.4 %      (60 ) 

Income before income taxes

      20.6 %      18.7 %      190       19.8 %      80       20.2 %      19.6 %      60  

Effective tax rate

      25.8 %      25.9 %      (10 )      25.2 %      60       25.5 %      25.4 %      10  

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2024 Earnings Release    Page 17 of 19

LOGO

 

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 $75.8 million, $64.6 million, and $73.9 million, as of June 30, 2024 and 2023, and March 31, 2024, respectively.

(5)

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

(6)

Includes capital raising and advisory fee revenues.

(7)

Includes independent contractors of 111, 109, and 114 as of June 30, 2024 and 2023, and March 31, 2024, respectively.

(8)

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

(9)

Includes Private Client Group and Trust Business.

(10)

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

(11)

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

(12)

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

(13)

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

(14)

During the first quarter of 2024, the Company began sweeping certain commercial treasury deposits to third-party banks.

(15)

Includes Smart Rate Deposits, Sweep Deposits, Third-party Bank Sweep Program, and Other Sweep Cash.

(16)

Includes net interest, asset management, and other income.

(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.

(18)

The Company recorded severance costs in the second quarter of 2024 associated with workforce reductions in certain of its foreign subsidiaries.

(19)

Primarily represents the Company’s effective tax rate for the period applied to the non-GAAP adjustments.

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2024 Earnings Release    Page 18 of 19

LOGO

 

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 second quarter earnings release issued July 24, 2024.

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2024 Earnings Release    Page 19 of 19