UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
_________________________
FORM
_________________________
CURRENT REPORT
Pursuant To Section 13 OR 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
_________________________
(Exact name of registrant as specified in its charter)
_________________________
|
|
|
(Address of principal executive offices and zip code)
(
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
_________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class |
|
Trading Symbol(s) |
|
Name of Each Exchange on Which Registered |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On October 27, 2021, Stifel Financial Corp. (“Stifel” or the “Company”) reported its financial results for the three months ended September 30, 2021. A copy of the related press release is attached hereto as Exhibit 99.1.
In addition, a copy of the Company's Financial Supplement for the quarter ended September 30, 2021 is attached hereto as Exhibit 99.2.
Stifel will hold a conference call on Wednesday, October 27, 2021, at 9:30 a.m. Eastern time. All interested parties are invited to listen to Stifel Chairman and CEO, Ronald J. Kruszewski, by dialing (877) 876-9938 and referencing conference ID 4980899. A live audio webcast of the call, as well as a presentation highlighting the Company’s results, will be available through Stifel's web site, www.stifel.com. For those who cannot listen to the live broadcast, a replay of the broadcast will be available through the above-referenced web site beginning approximately one hour following the completion of the call. The Company’s Financial Results Presentation is attached hereto as Exhibit 99.3.
The exhibits are being furnished pursuant to Item 2.02, and the information contained therein shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit NumberDescription of Exhibit
99.1 |
|
99.2 |
|
99.3 104 |
Financial Results Presentation. Cover Page Interactive Data File (embedded within the Inline XBRL document). |
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
STIFEL FINANCIAL CORP.
Date: October 27, 2021 |
By: |
/s/ James M. Marischen |
|
|
Name: |
James M. Marischen |
|
|
Title: |
Chief Financial Officer |
|
3
ST. LOUIS, MO, October 27, 2021 – Stifel Financial Corp. (NYSE: SF) today reported net income available to common shareholders of $182.7 million, or $1.54 per diluted common share on net revenues of $1.1 billion for the three months ended September 30, 2021, compared with net income available to common shareholders of $110.6 million, or $0.97 per diluted common share (1) on net revenues of $883.3 million for the third quarter of 2020. For the three months ended September 30, 2021, the Company reported non-GAAP net income available to common shareholders of $195.7 million, or $1.65 per diluted common share.
Ronald J. Kruszewski, Chairman and Chief Executive Officer, said “The third quarter’s net revenue and EPS were the second highest in our history as both operating segments, Global Wealth Management and Institutional Group, generated strong results. We are on track to generate the 26th consecutive year of record revenue and, through three quarters, we have already surpassed our full year record EPS, set last year. Our success is driven by the continued reinvestment in the business. Based on the strength of our recruiting and investment banking pipelines, as well as our leverage to higher interest rates, Stifel remains well positioned to continue and build upon our decades long growth.”
• |
Net revenues of $1.1 billion, increased 30% compared with the year-ago quarter. Year-to-date record net revenues of $3.4 billion, increased 28% over the comparable period last year. |
• |
Net income available to common shareholders of $1.54 per diluted common share, or $1.65 per diluted common share excluding the impact of merger-related expenses, up 59% over the year-ago quarter. |
• |
Year-to-date record net income available to common shareholders of $4.54 per diluted common share, or $4.85 per diluted common share excluding the impact of merger-related expenses, up 75% over the comparable period last year. |
• |
Record client assets of $407.0 billion, increased 25% compared with the year-ago quarter. |
• |
Annualized return on average tangible shareholders’ equity (ROTCE) (6) was 26%, or 28% excluding the impact of merger-related expenses. |
• |
Tangible book value per common share of $27.35 (8), up 27% compared with the year ago quarter. |
Segment Highlights
• |
Global Wealth Management reported record quarterly net revenues, up 24% over the comparable period last year reflecting growth in fee-based assets and client activity. |
• |
Institutional Group quarterly net revenues up 36% over the comparable period last year as a result of strong advisory fee and capital raising revenues. |
Financial Summary (Unaudited) |
||||
($ in 000s) |
3Q 2021 |
3Q 2020 |
9m 2021 |
9m 2020 |
GAAP Financial Highlights: |
|
|
|
|
Net revenues |
$1,144,938 |
$883,300 |
$3,432,863 |
$2,692,151 |
Net income (2) |
$182,687 |
$110,630 |
$537,201 |
$295,419 |
Diluted EPS (1) (2) |
$1.54 |
$4.54 |
||
Comp. ratio |
58.7% |
60.4% |
60.1% |
61.6% |
Non-comp. ratio |
18.9% |
21.7% |
18.1% |
22.9% |
Pre-tax margin |
22.4% |
17.9% |
21.8% |
15.5% |
Non-GAAP Financial Highlights: |
|
|
|
|
Net revenues |
$1,144,938 |
$883,300 |
$3,433,016 |
$2,692,330 |
Net income (2) (3) |
$195,653 |
$120,525 |
$574,145 |
$327,793 |
Diluted EPS (1) (2) (3) |
$1.65 |
$1.06 |
$4.85 |
$2.89 |
Comp. ratio (3) |
58.2% |
59.6% |
59.5% |
60.7% |
Non-comp. ratio (3) |
17.9% |
21.0% |
17.3% |
22.2% |
Pre-tax margin (4) |
23.9% |
19.4% |
23.2% |
17.1% |
ROCE (5) |
19.2% |
14.0% |
19.5% |
13.1% |
ROTCE (6) |
27.7% |
22.2% |
28.9% |
21.4% |
Global Wealth Management (assets and loans in millions) |
|
|||
Net revenues |
$655,533 |
$526,836 |
$1,924,595 |
$1,615,574 |
Pre-tax net income |
$232,119 |
$178,930 |
$682,655 |
$529,422 |
Total client assets |
$406,959 |
$325,159 |
|
|
Fee-based client assets |
$150,472 |
$115,162 |
|
|
Bank loans, net (7) |
$13,659 |
$10,932 |
|
|
Institutional Group |
|
|
|
|
Net revenues |
$492,284 |
$363,365 |
$1,519,176 |
$1,093,699 |
Media Contact: Neil Shapiro (212) 271-3447 | Investor Contact: Joel Jeffrey (212) 271- 3610 | www.stifel.com/investor-relations
Global Wealth Management
Global Wealth Management reported record net revenues of $655.5 million for the three months ended September 30, 2021 compared with $526.8 million during the third quarter of 2020. Pre-tax net income was $232.1 million compared with $178.9 million in the third quarter of 2020.
• |
Recruited 46 financial advisors, including 41 experienced advisors, with total trailing 12 month production of $35 million. |
• |
Record client assets of $407.0 billion, up 25% over the year-ago quarter. |
• |
Fee-based client assets of $150.5 billion, up 31% over the year-ago quarter. |
• |
Bank loans of $13.7 billion, up 25% over the year-ago quarter. |
Net revenues increased 24% from a year ago:
• |
Asset management revenues increased 36% over the year-ago quarter reflecting higher asset values and strong fee-based asset flows. |
• |
Brokerage revenues increased 13% over the year-ago quarter reflecting strong client activity during the quarter. |
• |
Net interest income increased 21% over the year-ago quarter driven by higher bank lending partially offset by the impact of lower interest rates. |
Total Expenses:
• |
Compensation expense increased over the year-ago quarter primarily driven by higher revenues. |
• |
Provision for credit losses was impacted by growth in the loan portfolio as well as changes in the outlook for macroeconomic conditions. |
• |
Non-compensation operating expenses increased over the year-ago quarter primarily as a result of higher data processing expense, subscription expense, and professional fees. The increase was partially offset by lower net provisions for litigation matters. |
Summary Results of Operations |
||
($ in 000s) |
3Q 2021 |
3Q 2020 |
Net revenues |
$655,533 |
$526,836 |
Asset management and service fees |
313,838 |
230,765 |
Brokerage revenues |
184,072 |
162,627 |
Net interest income |
130,341 |
108,181 |
Investment banking |
11,580 |
8,113 |
Other income |
15,702 |
17,150 |
Total expenses |
$423,414 |
$347,906 |
Compensation expense |
342,792 |
277,903 |
Provision for credit losses |
(660) |
(1,353) |
Non-comp. opex |
81,282 |
71,356 |
Pre-tax net income |
$232,119 |
$178,930 |
Compensation ratio |
52.3% |
52.7% |
Non-compensation ratio |
12.3% |
13.3% |
Pre-tax margin |
35.4% |
34.0% |
Media Contact: Neil Shapiro (212) 271-3447 | Investor Contact: Joel Jeffrey (212) 271- 3610 | www.stifel.com/investor-relations
Institutional Group
Institutional Group reported net revenues of $492.3 million for the three months ended September 30, 2021 compared with $363.4 million during the third quarter of 2020. Pre-tax net income was $125.1 million compared with $76.8 million in the third quarter of 2020.
• |
Investment banking pipeline at record levels. |
• |
Pre-tax margin of 25%, up from 21% in the year-ago quarter. |
Investment banking revenues increased 72% from a year ago:
• |
Advisory fee revenues increased 158% over the year-ago quarter on higher completed advisory transactions. |
• |
Equity capital raising revenues increased 20% over the year-ago quarter driven by higher volumes. |
• |
Fixed income capital raising revenues increased 16% over the year-ago quarter driven by an increase in public finance, as well as an increase in our corporate debt issuance business. |
Equity brokerage revenues decreased 11% from a year ago:
• |
Equity brokerage revenues declined from the year-ago quarter due to declines in cash equities driven by lower volatility and volumes. |
Fixed income brokerage revenues decreased 22% from a year ago:
• |
Fixed income brokerage revenues declined from the year-ago quarter due to lower volatility as well as tighter credit spreads. |
Total Expenses:
• |
Compensation expense increased over the year-ago quarter primarily driven by higher compensable revenues. |
• |
Non-compensation expenses increased over the year-ago quarter primarily as a result of higher travel and entertainment costs, increased litigation-related expenses, and higher conference-related expenses. |
Summary Results of Operations |
||
($ in 000s) |
3Q 2021 |
3Q 2020 |
Net revenues |
$492,284 |
$363,365 |
Investment banking |
360,699 |
210,021 |
Advisory fee revenue |
208,218 |
80,842 |
Equity capital raising |
93,764 |
78,462 |
Fixed income capital raising |
58,717 |
50,717 |
Equity brokerage |
48,307 |
54,204 |
Fixed income brokerage |
75,838 |
96,706 |
Other |
7,440 |
2,434 |
Total expenses |
$367,192 |
$286,524 |
Compensation expense |
283,063 |
210,754 |
Non-comp. opex. |
84,129 |
75,770 |
Pre-tax net income |
$125,092 |
$76,841 |
Compensation ratio |
57.5% |
58.0% |
Non-compensation ratio |
17.1% |
20.9% |
Pre-tax margin |
25.4% |
21.1% |
Stifel Financial Corp. | Page 3
Stifel Financial Corp. | Page 4
Other Segment
• |
Total assets increased $5.3 billion, or 21%, over the year-ago quarter. |
• |
The Company repurchased $44.8 million of its outstanding common stock during the third quarter. |
• |
Tier 1 leverage ratio increased 0.7% over the year-ago quarter. |
• |
The Board of Directors declared a $0.15 quarterly dividend per share payable on September 15, 2021 to common shareholders of record on September 1, 2021. |
• |
The Board of Directors declared a quarterly dividend on the outstanding shares of the Company’s preferred stock payable on September 15, 2021 to shareholders of record on September 1, 2021. |
3Q 2021 |
3Q 2020 |
|
Net revenues ($ in 000s) |
$ (2,879) |
$ (6,901) |
Pre-tax net loss ($ in 000s) |
$ (100,709) |
$ (97,378) |
Stifel Financial Corp. |
|
|
Tier 1 common capital ratio (9) |
16.6% |
15.4% |
Tier 1 risk based capital ratio (9) |
20.6% |
19.2% |
Tier 1 leverage capital ratio (9) |
12.0% |
11.3% |
Tier 1 capital (9) |
$3,502 |
$2,733 |
Risk weighted assets (9) |
$16,993 |
$14,227 |
Average assets (9) |
$29,123 |
$24,290 |
Quarter end assets |
$30,820 |
$25,549 |
Common stock repurchases |
|
|
Repurchases ($ in 000s) |
$44,793 |
NM |
Number of shares (000s) |
671 |
NM |
Average price |
$66.74 |
NM |
Period end shares (000s) (1) |
104,263 |
102,916 |
Effective tax rate |
25.0% |
23.9% |
Agency |
Rating |
Outlook |
Fitch Ratings |
BBB |
Positive |
S&P Global Ratings |
BBB- |
Positive |
Stifel Financial Corp. | Page 5
Conference Call Information
Stifel Financial Corp. will host its third quarter 2021 financial results conference call on Wednesday, October 27, 2021, at 9:30 a.m. Eastern Time. The conference call may include forward-looking statements.
All interested parties are invited to listen to Stifel’s Chairman and CEO, Ronald J. Kruszewski, by dialing (877) 876-9938 and referencing conference ID 4980899. A live audio webcast of the call, as well as a presentation highlighting the Company’s results, will be available through the Company’s web site, www.stifel.com. For those who cannot listen to the live broadcast, a replay of the broadcast will be available through the above-referenced web site beginning approximately one hour following the completion of the call.
Company Information
Stifel Financial Corp. (NYSE: SF) is a financial services holding company headquartered in St. Louis, Missouri, that conducts its banking, securities, and financial services business through several wholly owned subsidiaries. Stifel’s broker-dealer clients are served in the United States through Stifel, Nicolaus & Company, Incorporated, including its Eaton Partners business division; Keefe, Bruyette & Woods, Inc.; Miller Buckfire & Co., LLC; and Stifel Independent Advisors, LLC. The Company’s broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Bank and Stifel Bank & Trust offer a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. and Stifel Trust Company Delaware, N.A. offer trust and related services. To learn more about Stifel, please visit the Company’s website at www.stifel.com. For global disclosures, please visit www.stifel.com/investor-relations/press-releases.
A financial summary follows. Financial, statistical and business-related information, as well as information regarding business and segment trends, is included in the financial supplement. Both the earnings release and the financial supplement are available online in the Investor Relations section at www.stifel.com/investor-relations.
The information provided herein and in the financial supplement, including information provided on the Company’s earnings conference calls, may include certain non-GAAP financial measures. The definition of such measures or reconciliation of such measures to the comparable U.S. GAAP figures are included in this earnings release and the financial supplement, both of which are available online in the Investor Relations section at www.stifel.com/investor-relations.
Cautionary Note Regarding Forward-Looking Statements
This earnings release contains certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this earnings release not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements in this earnings release are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among other things, the following possibilities: the ability to successfully integrate acquired companies or the branch offices and financial advisors; a material adverse change in financial condition; the risk of borrower, depositor, and other customer attrition; a change in general business and economic conditions; changes in the interest rate environment, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in legislation and regulation; other economic, competitive, governmental, regulatory, geopolitical, and technological factors affecting the companies’ operations, pricing, and services; and other risk factors referred to from time to time in filings made by Stifel Financial Corp. with the Securities and Exchange Commission. For information about the risks and important factors that could affect the Company’s future results, financial condition and liquidity, see “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Forward-looking statements speak only as to the date they are made. The Company disclaims any intent or obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
Statements about the effects of the COVID-19 pandemic on the Company’s business, results, financial position and liquidity may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected.
Stifel Financial Corp. | Page 6
Summary Results of Operations (Unaudited)
|
Three Months Ended |
|
Nine Months Ended |
|||||
($ in 000s, except per share amounts) |
9/30/2021 |
9/30/2020 |
% Change |
6/30/2021 |
% Change |
9/30/2021 |
9/30/2020 |
% Change |
Revenues: |
|
|
|
|
|
|
|
|
Commissions |
$ 189,239 |
$ 172,654 |
9.6 |
$ 195,579 |
(3.2) |
$ 598,432 |
$ 560,780 |
6.7 |
Principal transactions |
118,977 |
140,883 |
(15.5) |
152,597 |
(22.0) |
436,580 |
445,566 |
(2.0) |
Investment banking |
372,279 |
218,134 |
70.7 |
376,443 |
(1.1) |
1,088,010 |
614,637 |
77.0 |
Asset management and service fees |
313,862 |
230,782 |
36.0 |
295,869 |
6.1 |
887,878 |
667,496 |
33.0 |
Other income |
18,760 |
20,258 |
(7.4) |
13,235 |
41.7 |
57,629 |
50,979 |
13.0 |
Operating revenues |
1,013,117 |
782,711 |
29.4 |
1,033,723 |
(2.0) |
3,068,529 |
2,339,458 |
31.2 |
Interest revenue |
141,844 |
114,411 |
24.0 |
133,591 |
6.2 |
402,975 |
403,956 |
(0.2) |
Total revenues |
1,154,961 |
897,122 |
28.7 |
1,167,314 |
(1.1) |
3,471,504 |
2,743,414 |
26.5 |
Interest expense |
10,023 |
13,822 |
(27.5) |
14,178 |
(29.3) |
38,641 |
51,263 |
(24.6) |
Net revenues |
1,144,938 |
883,300 |
29.6 |
1,153,136 |
(0.7) |
3,432,863 |
2,692,151 |
27.5 |
Non-interest expenses: |
|
|
|
|
|
|
|
|
Compensation and benefits |
672,385 |
533,638 |
26.0 |
692,054 |
(2.8) |
2,062,353 |
1,657,991 |
24.4 |
Non-compensation operating expenses |
216,051 |
191,269 |
13.0 |
197,057 |
9.6 |
622,091 |
617,701 |
0.7 |
Total non-interest expenses |
888,436 |
724,907 |
22.6 |
889,111 |
(0.1) |
2,684,444 |
2,275,692 |
18.0 |
Income before income taxes |
256,502 |
158,393 |
61.9 |
264,025 |
(2.8) |
748,419 |
416,459 |
79.7 |
Provision for income taxes |
64,126 |
37,866 |
69.3 |
65,948 |
(2.8) |
184,951 |
101,456 |
82.3 |
Net income |
192,376 |
120,527 |
59.6 |
198,077 |
(2.9) |
563,468 |
315,003 |
78.9 |
Preferred dividends |
9,689 |
9,897 |
(2.1) |
8,289 |
16.9 |
26,267 |
19,584 |
34.1 |
Net income available to common shareholders |
$182,687 |
$110,630 |
65.1 |
$189,788 |
(3.7) |
$537,201 |
$295,419 |
81.8 |
Earnings per common share: (1) |
|
|
|
|
|
|
|
|
Basic |
$1.70 |
$1.04 |
63.5 |
$1.76 |
(3.4) |
$4.99 |
$2.78 |
79.5 |
Diluted |
$1.54 |
$0.97 |
58.8 |
$1.60 |
(3.8) |
$4.54 |
$2.60 |
74.6 |
Cash dividends declared per common share (1) |
$0.15 |
$0.11 |
36.4 |
$0.15 |
— |
$0.45 |
$0.33 |
36.4 |
Weighted average number of common shares outstanding: (1) |
|
|
|
|
|
|||
Basic |
107,379 |
105,941 |
1.4 |
107,837 |
(0.4) |
107,655 |
106,221 |
1.4 |
Diluted |
118,475 |
113,775 |
4.1 |
118,602 |
(0.1) |
118,355 |
113,568 |
4.2 |
Stifel Financial Corp. | Page 7
Non-GAAP Financial Measures
The Company utilized certain non-GAAP calculations as additional measures to aid in understanding and analyzing the Company’s financial results for the three and nine months ended September 30, 2021 and 2020. Specifically, the Company believes that the non-GAAP measures provide useful information by excluding certain items that may not be indicative of the Company’s core operating results and business outlook. The Company believes that these non-GAAP measures will allow for a better evaluation of the operating performance of the business and facilitate a meaningful comparison of the Company’s results in the current period to those in prior and future periods. Reference to these non-GAAP measures should not be considered as a substitute for results that are presented in a manner consistent with GAAP. These non-GAAP measures are provided to enhance investors’ overall understanding of the Company’s current financial performance. The non-GAAP financial information should be considered in addition to, not as a substitute for or as being superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP. These non-GAAP measures primarily exclude expenses which management believes are, in some instances, non-recurring and not representative of on-going business.
A limitation of utilizing these non-GAAP measures is that the GAAP accounting effects of these charges do, in fact, reflect the underlying financial results of the Company’s business and these effects should not be ignored in evaluating and analyzing its financial results. Therefore, the Company believes that GAAP measures and the same respective non-GAAP measures of the Company’s financial performance should be considered together.
The following tables provide details with respect to reconciling net income and earnings per diluted common share on a GAAP basis for the three and nine months ended September 30, 2021 and 2020 to net income and earnings per diluted common share on a non-GAAP basis for the same period.
|
Three Months Ended |
Nine Months Ended |
||
($ in 000s, except per share amounts) |
9/30/2021 |
9/30/2020 |
9/30/2021 |
9/30/2020 |
GAAP net income |
$192,376 |
$120,527 |
$563,468 |
$315,003 |
Preferred dividend |
9,689 |
9,897 |
26,267 |
19,584 |
Net income available to common shareholders |
182,687 |
110,630 |
537,201 |
295,419 |
|
|
|
|
|
Non-GAAP adjustments: |
|
|
|
|
Merger-related (10) |
17,283 |
12,989 |
49,080 |
42,758 |
Provision for income taxes (11) |
(4,317) |
(3,094) |
(12,136) |
(10,384) |
Total non-GAAP adjustments |
12,966 |
9,895 |
36,944 |
32,374 |
Non-GAAP net income available to common shareholders |
$195,653 |
$120,525 |
$574,145 |
$327,793 |
|
|
|
|
|
Weighted average diluted shares outstanding (1) |
118,475 |
113,775 |
118,355 |
113,568 |
|
|
|
|
|
GAAP earnings per diluted common share (1) |
$1.62 |
$1.06 |
$4.76 |
$2.77 |
Non-GAAP adjustments (1) |
0.11 |
0.09 |
0.31 |
0.29 |
Non-GAAP earnings per diluted common share (1) |
$1.73 |
$1.15 |
$5.07 |
$3.06 |
|
|
|
|
|
GAAP earnings per diluted common share available to common shareholders (1) |
$1.54 |
$0.97 |
$4.54 |
$2.60 |
Non-GAAP adjustments (1) |
0.11 |
0.09 |
0.31 |
0.29 |
Non-GAAP earnings per diluted common share available to common shareholders (1) |
$1.65 |
$1.06 |
$4.85 |
$2.89 |
Stifel Financial Corp. | Page 8
GAAP to Non-GAAP Reconciliation
|
Three Months Ended |
Nine Months Ended |
||
($ in 000s) |
9/30/2021 |
9/30/2020 |
9/30/2021 |
9/30/2020 |
GAAP compensation and benefits |
$672,385 |
$533,638 |
$2,062,353 |
$1,657,991 |
As a percentage of net revenues |
58.7% |
60.4% |
60.1% |
61.6% |
Non-GAAP adjustments: |
|
|
|
|
Merger-related (10) |
(5,780) |
(6,770) |
(18,073) |
(22,907) |
Non-GAAP compensation and benefits |
$666,605 |
$526,868 |
$2,044,280 |
$1,635,084 |
As a percentage of non-GAAP net revenues |
58.2% |
59.6% |
59.5% |
60.7% |
|
|
|
|
|
GAAP non-compensation expenses |
$216,051 |
$191,269 |
$622,091 |
$617,701 |
As a percentage of net revenues |
18.9% |
21.7% |
18.1% |
22.9% |
Non-GAAP adjustments: |
|
|
|
|
Merger-related (10) |
(11,503) |
(6,219) |
(30,854) |
(19,672) |
Non-GAAP non-compensation expenses |
$204,548 |
$185,050 |
$591,237 |
$598,029 |
As a percentage of non-GAAP net revenues |
17.9% |
21.0% |
17.3% |
22.2% |
Total merger-related expenses |
$17,283 |
$12,989 |
$49,080 |
$42,758 |
Stifel Financial Corp. | Page 9
Footnotes
|
(1) |
All share and per share information has been retroactively adjusted to reflect the December 2020 three-for-two stock split. |
|
(2) |
Represents available to common shareholders. |
|
(3) |
Reconciliations of the Company’s GAAP results to these non-GAAP measures are discussed within and under “Non-GAAP Financial Measures.” |
|
(4) |
Non-GAAP pre-tax margin for the three months ended September 30, 2021 of 23.9% is calculated by adding non-GAAP adjustments of $17.3 million to our GAAP income before income taxes of $256.5 million and dividing it by non-GAAP net revenues for the quarter of $1.1 billion. Reconciliations of the Company’s GAAP results to certain non-GAAP measures is discussed within and under “Non-GAAP Financial Measures.” |
|
(5) |
Annualized return on average common shareholders’ 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 ROE, calculated by dividing non-GAAP net income applicable to commons shareholders by average common shareholders’ equity. |
|
(6) |
Annualized return on average tangible common shareholders’ equity (“ROTCE”) is calculated by dividing annualized net income applicable to common shareholders by average tangible shareholders’ equity or, in the case of non-GAAP ROTE, calculated by dividing non-GAAP net income applicable to common shareholders by average tangible shareholders’ equity. Tangible common shareholders’ equity 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 $54.5 million and $49.6 million as of September 30, 2021 and 2020, respectively. |
|
(7) |
Includes loans held for sale. |
|
(8) |
Tangible book value per common share represents shareholders’ equity (excluding preferred stock) divided by period end common shares outstanding. Tangible common shareholders’ equity equals total common shareholders’ equity less goodwill and identifiable intangible assets and the deferred taxes on goodwill and intangible assets. |
|
(9) |
Capital ratios are estimates at time of the Company’s earnings release. |
|
(11) |
Primarily represents the Company’s effective tax rate for the period applied to the non-GAAP adjustments. |
Stifel Financial Corp. | Page 10
Exhibit 99.2
Third Quarter 2021 Earnings Results |
|
|
|
|
|
Quarterly Financial Supplement |
|
Page |
|
|
|
Consolidated Financial Highlights |
|
2 |
GAAP Consolidated Results of Operations |
|
3 |
Non-GAAP Consolidated Results of Operations |
|
4 |
Consolidated Financial Summary |
|
5 |
Consolidated Financial Information and Metrics |
|
6 |
Regulatory Capital |
|
7 |
Global Wealth Management - Summary Results of Operations |
|
8 |
Global Wealth Management - Statistical Information |
|
9 |
Institutional Group - Summary Results of Operations |
|
10 |
Stifel Bancorp - Financial Information and Credit Metrics |
|
11 |
Loans and Lending Commitments - Allowance for Credit Losses |
|
12 |
Consolidated Net Interest Income |
|
13 |
Stifel Bancorp Net Interest Income |
|
14 |
GAAP to Core Reconciliation |
|
15 |
Footnotes |
|
16 |
Disclaimer and Legal Notice |
|
17 |
Consolidated Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||||||||||||||||||
(Unaudited, $ in 000s except per share information) |
|
9/30/2021 |
|
|
9/30/2020 |
|
|
% Change |
|
|
6/30/2021 |
|
|
% Change |
|
|
9/30/2021 |
|
|
9/30/2020 |
|
|
% Change |
|
||||||||
Net revenues |
|
$ |
1,144,938 |
|
|
$ |
883,300 |
|
|
|
29.6 |
% |
|
$ |
1,153,136 |
|
|
|
(0.7 |
%) |
|
$ |
3,432,863 |
|
|
$ |
2,692,151 |
|
|
|
27.5 |
% |
Net income |
|
$ |
192,376 |
|
|
$ |
120,527 |
|
|
|
59.6 |
% |
|
$ |
198,077 |
|
|
|
(2.9 |
%) |
|
$ |
563,468 |
|
|
$ |
315,003 |
|
|
|
78.9 |
% |
Preferred dividends |
|
|
9,689 |
|
|
|
9,897 |
|
|
|
(2.1 |
%) |
|
|
8,289 |
|
|
|
16.9 |
% |
|
|
26,267 |
|
|
|
19,584 |
|
|
|
34.1 |
% |
Net income available to common shareholders |
|
$ |
182,687 |
|
|
$ |
110,630 |
|
|
|
65.1 |
% |
|
$ |
189,788 |
|
|
|
(3.7 |
%) |
|
$ |
537,201 |
|
|
$ |
295,419 |
|
|
|
81.8 |
% |
Earnings per diluted common share (1) |
|
$ |
1.62 |
|
|
$ |
1.06 |
|
|
|
52.8 |
% |
|
$ |
1.67 |
|
|
|
(3.0 |
%) |
|
$ |
4.76 |
|
|
$ |
2.77 |
|
|
|
71.8 |
% |
Earnings per diluted common share available to common shareholders (1) |
|
$ |
1.54 |
|
|
$ |
0.97 |
|
|
|
58.8 |
% |
|
$ |
1.60 |
|
|
|
(3.8 |
%) |
|
$ |
4.54 |
|
|
$ |
2.60 |
|
|
|
74.6 |
% |
Non-GAAP financial summary (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
$ |
1,144,938 |
|
|
$ |
883,300 |
|
|
|
29.6 |
% |
|
$ |
1,153,098 |
|
|
|
(0.7 |
%) |
|
$ |
3,433,016 |
|
|
$ |
2,692,330 |
|
|
|
27.5 |
% |
Net income |
|
$ |
205,342 |
|
|
$ |
130,422 |
|
|
|
57.4 |
% |
|
$ |
210,356 |
|
|
|
(2.4 |
%) |
|
$ |
600,412 |
|
|
$ |
347,377 |
|
|
|
72.8 |
% |
Preferred dividends |
|
|
9,689 |
|
|
|
9,897 |
|
|
|
(2.1 |
%) |
|
|
8,289 |
|
|
|
16.9 |
% |
|
|
26,267 |
|
|
|
19,584 |
|
|
|
34.1 |
% |
Net income available to common shareholders |
|
$ |
195,653 |
|
|
|
120,525 |
|
|
|
62.3 |
% |
|
|
202,067 |
|
|
|
(3.2 |
%) |
|
|
574,145 |
|
|
|
327,793 |
|
|
|
75.2 |
% |
Earnings per diluted common share (1) |
|
$ |
1.73 |
|
|
$ |
1.15 |
|
|
|
50.4 |
% |
|
$ |
1.77 |
|
|
|
(2.3 |
%) |
|
$ |
5.07 |
|
|
$ |
3.06 |
|
|
|
65.7 |
% |
Earnings per diluted common share available to common shareholders (1) |
|
$ |
1.65 |
|
|
$ |
1.06 |
|
|
|
55.7 |
% |
|
$ |
1.70 |
|
|
|
(2.9 |
%) |
|
$ |
4.85 |
|
|
$ |
2.89 |
|
|
|
67.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
107,379 |
|
|
|
105,941 |
|
|
|
1.4 |
% |
|
|
107,837 |
|
|
|
(0.4 |
%) |
|
|
107,655 |
|
|
|
106,221 |
|
|
|
1.4 |
% |
Diluted |
|
|
118,475 |
|
|
|
113,775 |
|
|
|
4.1 |
% |
|
|
118,602 |
|
|
|
(0.1 |
%) |
|
|
118,355 |
|
|
|
113,568 |
|
|
|
4.2 |
% |
Period end common shares outstanding (1) |
|
|
104,263 |
|
|
|
102,916 |
|
|
|
1.3 |
% |
|
|
104,865 |
|
|
|
(0.6 |
%) |
|
|
104,263 |
|
|
|
102,916 |
|
|
|
1.3 |
% |
Cash dividends declared per common share (1) |
|
$ |
0.15 |
|
|
$ |
0.11 |
|
|
|
36.4 |
% |
|
$ |
0.15 |
|
|
|
0.0 |
% |
|
$ |
0.45 |
|
|
$ |
0.33 |
|
|
|
36.4 |
% |
Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2021 Earnings Release |
Page 1 of 17 |
GAAP Results of Operations (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||||||||||||||||||
($ in 000s except per share information) |
|
9/30/2021 |
|
|
9/30/2020 |
|
|
% Change |
|
|
6/30/2021 |
|
|
% Change |
|
|
9/30/2021 |
|
|
9/30/2020 |
|
|
% Change |
|
||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions |
|
$ |
189,239 |
|
|
$ |
172,654 |
|
|
|
9.6 |
% |
|
$ |
195,579 |
|
|
|
(3.2 |
%) |
|
$ |
598,432 |
|
|
$ |
560,780 |
|
|
|
6.7 |
% |
Principal transactions |
|
|
118,977 |
|
|
|
140,883 |
|
|
|
(15.5 |
%) |
|
|
152,597 |
|
|
|
(22.0 |
%) |
|
|
436,580 |
|
|
|
445,566 |
|
|
|
(2.0 |
%) |
Brokerage revenues |
|
|
308,216 |
|
|
|
313,537 |
|
|
|
(1.7 |
%) |
|
|
348,176 |
|
|
|
(11.5 |
%) |
|
|
1,035,012 |
|
|
|
1,006,346 |
|
|
|
2.8 |
% |
Capital raising |
|
|
164,061 |
|
|
|
137,292 |
|
|
|
19.5 |
% |
|
|
169,778 |
|
|
|
(3.4 |
%) |
|
|
542,645 |
|
|
|
359,885 |
|
|
|
50.8 |
% |
Advisory fees |
|
|
208,218 |
|
|
|
80,842 |
|
|
|
157.6 |
% |
|
|
206,665 |
|
|
|
0.8 |
% |
|
|
545,365 |
|
|
|
254,752 |
|
|
|
114.1 |
% |
Investment banking |
|
|
372,279 |
|
|
|
218,134 |
|
|
|
70.7 |
% |
|
|
376,443 |
|
|
|
(1.1 |
%) |
|
|
1,088,010 |
|
|
|
614,637 |
|
|
|
77.0 |
% |
Asset management and service fees |
|
|
313,862 |
|
|
|
230,782 |
|
|
|
36.0 |
% |
|
|
295,869 |
|
|
|
6.1 |
% |
|
|
887,878 |
|
|
|
667,496 |
|
|
|
33.0 |
% |
Other income |
|
|
18,760 |
|
|
|
20,258 |
|
|
|
(7.4 |
%) |
|
|
13,235 |
|
|
|
41.7 |
% |
|
|
57,629 |
|
|
|
50,979 |
|
|
|
13.0 |
% |
Operating revenues |
|
|
1,013,117 |
|
|
|
782,711 |
|
|
|
29.4 |
% |
|
|
1,033,723 |
|
|
|
(2.0 |
%) |
|
|
3,068,529 |
|
|
|
2,339,458 |
|
|
|
31.2 |
% |
Interest revenue |
|
|
141,844 |
|
|
|
114,411 |
|
|
|
24.0 |
% |
|
|
133,591 |
|
|
|
6.2 |
% |
|
|
402,975 |
|
|
|
403,956 |
|
|
|
(0.2 |
%) |
Total revenues |
|
|
1,154,961 |
|
|
|
897,122 |
|
|
|
28.7 |
% |
|
|
1,167,314 |
|
|
|
(1.1 |
%) |
|
|
3,471,504 |
|
|
|
2,743,414 |
|
|
|
26.5 |
% |
Interest expense |
|
|
10,023 |
|
|
|
13,822 |
|
|
|
(27.5 |
%) |
|
|
14,178 |
|
|
|
(29.3 |
%) |
|
|
38,641 |
|
|
|
51,263 |
|
|
|
(24.6 |
%) |
Net revenues |
|
|
1,144,938 |
|
|
|
883,300 |
|
|
|
29.6 |
% |
|
|
1,153,136 |
|
|
|
(0.7 |
%) |
|
|
3,432,863 |
|
|
|
2,692,151 |
|
|
|
27.5 |
% |
Non-interest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
672,385 |
|
|
|
533,638 |
|
|
|
26.0 |
% |
|
|
692,054 |
|
|
|
(2.8 |
%) |
|
|
2,062,353 |
|
|
|
1,657,991 |
|
|
|
24.4 |
% |
Occupancy and equipment rental |
|
|
72,160 |
|
|
|
68,598 |
|
|
|
5.2 |
% |
|
|
70,971 |
|
|
|
1.7 |
% |
|
|
215,163 |
|
|
|
200,935 |
|
|
|
7.1 |
% |
Communication and office supplies |
|
|
40,432 |
|
|
|
40,123 |
|
|
|
0.8 |
% |
|
|
41,308 |
|
|
|
(2.1 |
%) |
|
|
123,565 |
|
|
|
124,293 |
|
|
|
(0.6 |
%) |
Commissions and floor brokerage |
|
|
14,744 |
|
|
|
13,254 |
|
|
|
11.2 |
% |
|
|
13,977 |
|
|
|
5.5 |
% |
|
|
44,424 |
|
|
|
43,273 |
|
|
|
2.7 |
% |
Provision for credit losses |
|
|
(660 |
) |
|
|
(1,353 |
) |
|
|
(51.2 |
%) |
|
|
(9,652 |
) |
|
|
(93.2 |
%) |
|
|
(15,564 |
) |
|
|
33,925 |
|
|
|
(145.9 |
%) |
Other operating expenses |
|
|
89,375 |
|
|
|
70,647 |
|
|
|
26.5 |
% |
|
|
80,453 |
|
|
|
11.1 |
% |
|
|
254,503 |
|
|
|
215,275 |
|
|
|
18.2 |
% |
Total non-interest expenses |
|
|
888,436 |
|
|
|
724,907 |
|
|
|
22.6 |
% |
|
|
889,111 |
|
|
|
(0.1 |
%) |
|
|
2,684,444 |
|
|
|
2,275,692 |
|
|
|
18.0 |
% |
Income before income taxes |
|
|
256,502 |
|
|
|
158,393 |
|
|
|
61.9 |
% |
|
|
264,025 |
|
|
|
(2.8 |
%) |
|
|
748,419 |
|
|
|
416,459 |
|
|
|
79.7 |
% |
Provision for income taxes |
|
|
64,126 |
|
|
|
37,866 |
|
|
|
69.3 |
% |
|
|
65,948 |
|
|
|
(2.8 |
%) |
|
|
184,951 |
|
|
|
101,456 |
|
|
|
82.3 |
% |
Net income |
|
|
192,376 |
|
|
|
120,527 |
|
|
|
59.6 |
% |
|
|
198,077 |
|
|
|
(2.9 |
%) |
|
|
563,468 |
|
|
|
315,003 |
|
|
|
78.9 |
% |
Preferred dividends |
|
|
9,689 |
|
|
|
9,897 |
|
|
|
(2.1 |
%) |
|
|
8,289 |
|
|
|
16.9 |
% |
|
|
26,267 |
|
|
|
19,584 |
|
|
|
34.1 |
% |
Net income available to common shareholders |
|
$ |
182,687 |
|
|
$ |
110,630 |
|
|
|
65.1 |
% |
|
$ |
189,788 |
|
|
|
(3.7 |
%) |
|
$ |
537,201 |
|
|
$ |
295,419 |
|
|
|
81.8 |
% |
Earnings per common share: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.70 |
|
|
$ |
1.04 |
|
|
|
63.5 |
% |
|
$ |
1.76 |
|
|
|
(3.4 |
%) |
|
$ |
4.99 |
|
|
$ |
2.78 |
|
|
|
79.5 |
% |
Diluted |
|
$ |
1.54 |
|
|
$ |
0.97 |
|
|
|
58.8 |
% |
|
$ |
1.60 |
|
|
|
(3.8 |
%) |
|
$ |
4.54 |
|
|
$ |
2.60 |
|
|
|
74.6 |
% |
Weighted average number of common shares outstanding: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Basic |
|
|
107,379 |
|
|
|
105,941 |
|
|
|
1.4 |
% |
|
|
107,837 |
|
|
|
(0.4 |
%) |
|
|
107,655 |
|
|
|
106,221 |
|
|
|
1.4 |
% |
Diluted |
|
|
118,475 |
|
|
|
113,775 |
|
|
|
4.1 |
% |
|
|
118,602 |
|
|
|
(0.1 |
%) |
|
|
118,355 |
|
|
|
113,568 |
|
|
|
4.2 |
% |
Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2021 Earnings Release |
Page 2 of 17 |
Cash dividends declared per common share (1) |
|
$ |
0.15 |
|
|
$ |
0.11 |
|
|
|
36.4 |
% |
|
$ |
0.15 |
|
|
|
0.0 |
% |
|
$ |
0.45 |
|
|
$ |
0.33 |
|
|
|
36.4 |
% |
Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2021 Earnings Release |
Page 3 of 17 |
Non-GAAP Results of Operations (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||||||||||||||||||
($ in 000s except per share information) |
|
9/30/2021 |
|
|
9/30/2020 |
|
|
% Change |
|
|
6/30/2021 |
|
|
% Change |
|
|
9/30/2021 |
|
|
9/30/2020 |
|
|
% Change |
|
||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions |
|
$ |
189,239 |
|
|
$ |
172,654 |
|
|
|
9.6 |
% |
|
$ |
195,579 |
|
|
|
(3.2 |
%) |
|
$ |
598,432 |
|
|
$ |
560,780 |
|
|
|
6.7 |
% |
Principal transactions |
|
|
118,977 |
|
|
|
140,883 |
|
|
|
(15.5 |
%) |
|
|
152,597 |
|
|
|
(22.0 |
%) |
|
|
436,580 |
|
|
|
445,566 |
|
|
|
(2.0 |
%) |
Brokerage revenues |
|
|
308,216 |
|
|
|
313,537 |
|
|
|
(1.7 |
%) |
|
|
348,176 |
|
|
|
(11.5 |
%) |
|
|
1,035,012 |
|
|
|
1,006,346 |
|
|
|
2.8 |
% |
Capital raising |
|
|
164,061 |
|
|
|
137,292 |
|
|
|
19.5 |
% |
|
|
169,778 |
|
|
|
(3.4 |
%) |
|
|
542,645 |
|
|
|
359,885 |
|
|
|
50.8 |
% |
Advisory fees |
|
|
208,218 |
|
|
|
80,842 |
|
|
|
157.6 |
% |
|
|
206,665 |
|
|
|
0.8 |
% |
|
|
545,365 |
|
|
|
254,752 |
|
|
|
114.1 |
% |
Investment banking |
|
|
372,279 |
|
|
|
218,134 |
|
|
|
70.7 |
% |
|
|
376,443 |
|
|
|
(1.1 |
%) |
|
|
1,088,010 |
|
|
|
614,637 |
|
|
|
77.0 |
% |
Asset management and service fees |
|
|
313,862 |
|
|
|
230,782 |
|
|
|
36.0 |
% |
|
|
295,869 |
|
|
|
6.1 |
% |
|
|
887,878 |
|
|
|
667,496 |
|
|
|
33.0 |
% |
Other income |
|
|
18,760 |
|
|
|
20,258 |
|
|
|
(7.4 |
%) |
|
|
13,197 |
|
|
|
42.2 |
% |
|
|
57,657 |
|
|
|
51,158 |
|
|
|
12.7 |
% |
Operating revenues |
|
|
1,013,117 |
|
|
|
782,711 |
|
|
|
29.4 |
% |
|
|
1,033,685 |
|
|
|
(2.0 |
%) |
|
|
3,068,557 |
|
|
|
2,339,637 |
|
|
|
31.2 |
% |
Interest revenue |
|
|
141,844 |
|
|
|
114,411 |
|
|
|
24.0 |
% |
|
|
133,591 |
|
|
|
6.2 |
% |
|
|
402,975 |
|
|
|
403,956 |
|
|
|
(0.2 |
%) |
Total revenues |
|
|
1,154,961 |
|
|
|
897,122 |
|
|
|
28.7 |
% |
|
|
1,167,276 |
|
|
|
(1.1 |
%) |
|
|
3,471,532 |
|
|
|
2,743,593 |
|
|
|
26.5 |
% |
Interest expense |
|
|
10,023 |
|
|
|
13,822 |
|
|
|
(27.5 |
%) |
|
|
14,178 |
|
|
|
(29.3 |
%) |
|
|
38,516 |
|
|
|
51,263 |
|
|
|
(24.9 |
%) |
Net revenues |
|
|
1,144,938 |
|
|
|
883,300 |
|
|
|
29.6 |
% |
|
|
1,153,098 |
|
|
|
(0.7 |
%) |
|
|
3,433,016 |
|
|
|
2,692,330 |
|
|
|
27.5 |
% |
Non-interest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
666,605 |
|
|
|
526,868 |
|
|
|
26.5 |
% |
|
|
685,935 |
|
|
|
(2.8 |
%) |
|
|
2,044,280 |
|
|
|
1,635,084 |
|
|
|
25.0 |
% |
Occupancy and equipment rental |
|
|
72,129 |
|
|
|
68,493 |
|
|
|
5.3 |
% |
|
|
70,938 |
|
|
|
1.7 |
% |
|
|
215,068 |
|
|
|
200,252 |
|
|
|
7.4 |
% |
Communication and office supplies |
|
|
40,432 |
|
|
|
40,017 |
|
|
|
1.0 |
% |
|
|
41,232 |
|
|
|
(1.9 |
%) |
|
|
123,489 |
|
|
|
123,790 |
|
|
|
(0.2 |
%) |
Commissions and floor brokerage |
|
|
14,744 |
|
|
|
13,254 |
|
|
|
11.2 |
% |
|
|
13,977 |
|
|
|
5.5 |
% |
|
|
44,424 |
|
|
|
43,273 |
|
|
|
2.7 |
% |
Provision for credit losses |
|
|
(660 |
) |
|
|
(1,353 |
) |
|
|
(51.2 |
%) |
|
|
(9,652 |
) |
|
|
(93.2 |
%) |
|
|
(15,564 |
) |
|
|
33,925 |
|
|
|
(145.9 |
%) |
Other operating expenses |
|
|
77,903 |
|
|
|
64,639 |
|
|
|
20.5 |
% |
|
|
70,275 |
|
|
|
10.9 |
% |
|
|
223,820 |
|
|
|
196,789 |
|
|
|
13.7 |
% |
Total non-interest expenses |
|
|
871,153 |
|
|
|
711,918 |
|
|
|
22.4 |
% |
|
|
872,705 |
|
|
|
(0.2 |
%) |
|
|
2,635,517 |
|
|
|
2,233,113 |
|
|
|
18.0 |
% |
Income before income taxes |
|
|
273,785 |
|
|
|
171,382 |
|
|
|
59.8 |
% |
|
|
280,393 |
|
|
|
(2.4 |
%) |
|
|
797,499 |
|
|
|
459,217 |
|
|
|
73.7 |
% |
Provision for income taxes |
|
|
68,443 |
|
|
|
40,960 |
|
|
|
67.1 |
% |
|
|
70,037 |
|
|
|
(2.3 |
%) |
|
|
197,087 |
|
|
|
111,840 |
|
|
|
76.2 |
% |
Net income |
|
|
205,342 |
|
|
|
130,422 |
|
|
|
57.4 |
% |
|
|
210,356 |
|
|
|
(2.4 |
%) |
|
|
600,412 |
|
|
|
347,377 |
|
|
|
72.8 |
% |
Preferred dividends |
|
|
9,689 |
|
|
|
9,897 |
|
|
|
(2.1 |
%) |
|
|
8,289 |
|
|
|
16.9 |
% |
|
|
26,267 |
|
|
|
19,584 |
|
|
|
34.1 |
% |
Net income available to common shareholders |
|
$ |
195,653 |
|
|
$ |
120,525 |
|
|
|
62.3 |
% |
|
$ |
202,067 |
|
|
|
(3.2 |
%) |
|
$ |
574,145 |
|
|
$ |
327,793 |
|
|
|
75.2 |
% |
Earnings per common share: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.82 |
|
|
$ |
1.14 |
|
|
|
59.6 |
% |
|
$ |
1.87 |
|
|
|
(2.7 |
%) |
|
$ |
5.33 |
|
|
$ |
3.09 |
|
|
|
72.5 |
% |
Diluted |
|
$ |
1.65 |
|
|
$ |
1.06 |
|
|
|
55.7 |
% |
|
$ |
1.70 |
|
|
|
(2.9 |
%) |
|
$ |
4.85 |
|
|
$ |
2.89 |
|
|
|
67.8 |
% |
Weighted average number of common shares outstanding: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
107,379 |
|
|
|
105,941 |
|
|
|
1.4 |
% |
|
|
107,837 |
|
|
|
(0.4 |
%) |
|
|
107,655 |
|
|
|
106,221 |
|
|
|
1.4 |
% |
Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2021 Earnings Release |
Page 4 of 17 |
Diluted |
|
|
118,475 |
|
|
|
113,775 |
|
|
|
4.1 |
% |
|
|
118,602 |
|
|
|
(0.1 |
%) |
|
|
118,355 |
|
|
|
113,568 |
|
|
|
4.2 |
% |
Cash dividends declared per common share (1) |
|
$ |
0.15 |
|
|
$ |
0.11 |
|
|
|
36.4 |
% |
|
$ |
0.15 |
|
|
|
0.0 |
% |
|
$ |
0.45 |
|
|
$ |
0.33 |
|
|
|
36.4 |
% |
Consolidated Financial Summary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||||||||||||||||||
(Unaudited, $ in 000s except percentages) |
|
9/30/2021 |
|
|
9/30/2020 |
|
|
% Change |
|
|
6/30/2021 |
|
|
% Change |
|
|
9/30/2021 |
|
|
9/30/2020 |
|
|
% Change |
|
||||||||
Net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Wealth Management |
|
$ |
655,533 |
|
|
$ |
526,836 |
|
|
|
24.4 |
% |
|
$ |
637,567 |
|
|
|
2.8 |
% |
|
$ |
1,924,595 |
|
|
$ |
1,615,574 |
|
|
|
19.1 |
% |
Institutional Group |
|
|
492,284 |
|
|
|
363,365 |
|
|
|
35.5 |
% |
|
|
520,811 |
|
|
|
(5.5 |
%) |
|
|
1,519,176 |
|
|
|
1,093,699 |
|
|
|
38.9 |
% |
Other |
|
|
(2,879 |
) |
|
|
(6,901 |
) |
|
|
(58.3 |
%) |
|
|
(5,242 |
) |
|
|
(45.1 |
%) |
|
|
(10,908 |
) |
|
|
(17,122 |
) |
|
|
(36.3 |
%) |
Total net revenues |
|
$ |
1,144,938 |
|
|
$ |
883,300 |
|
|
|
29.6 |
% |
|
$ |
1,153,136 |
|
|
|
(0.7 |
%) |
|
$ |
3,432,863 |
|
|
$ |
2,692,151 |
|
|
|
27.5 |
% |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Wealth Management |
|
$ |
423,414 |
|
|
$ |
347,906 |
|
|
|
21.7 |
% |
|
$ |
410,262 |
|
|
|
3.2 |
% |
|
$ |
1,241,940 |
|
|
$ |
1,086,152 |
|
|
|
14.3 |
% |
Institutional Group |
|
|
367,192 |
|
|
|
286,524 |
|
|
|
28.2 |
% |
|
|
379,317 |
|
|
|
(3.2 |
%) |
|
|
1,135,402 |
|
|
|
892,069 |
|
|
|
27.3 |
% |
Other |
|
|
97,830 |
|
|
|
90,477 |
|
|
|
8.1 |
% |
|
|
99,532 |
|
|
|
(1.7 |
%) |
|
|
307,102 |
|
|
|
297,471 |
|
|
|
3.2 |
% |
Total operating expenses |
|
$ |
888,436 |
|
|
$ |
724,907 |
|
|
|
22.6 |
% |
|
$ |
889,111 |
|
|
|
(0.1 |
%) |
|
$ |
2,684,444 |
|
|
$ |
2,275,692 |
|
|
|
18.0 |
% |
Operating contribution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Wealth Management |
|
$ |
232,119 |
|
|
$ |
178,930 |
|
|
|
29.7 |
% |
|
$ |
227,305 |
|
|
|
2.1 |
% |
|
$ |
682,655 |
|
|
$ |
529,422 |
|
|
|
28.9 |
% |
Institutional Group |
|
|
125,092 |
|
|
|
76,841 |
|
|
|
62.8 |
% |
|
|
141,494 |
|
|
|
(11.6 |
%) |
|
|
383,774 |
|
|
|
201,630 |
|
|
|
90.3 |
% |
Other |
|
|
(100,709 |
) |
|
|
(97,378 |
) |
|
|
3.4 |
% |
|
|
(104,774 |
) |
|
|
(3.9 |
%) |
|
|
(318,010 |
) |
|
|
(314,593 |
) |
|
|
1.1 |
% |
Income before income taxes |
|
$ |
256,502 |
|
|
$ |
158,393 |
|
|
|
61.9 |
% |
|
$ |
264,025 |
|
|
|
(2.8 |
%) |
|
$ |
748,419 |
|
|
$ |
416,459 |
|
|
|
79.7 |
% |
Financial ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
58.7 |
% |
|
|
60.4 |
% |
|
|
(170 |
) |
|
|
60.0 |
% |
|
|
(130 |
) |
|
|
60.1 |
% |
|
|
61.6 |
% |
|
|
(150 |
) |
Non-compensation operating expenses |
|
|
18.9 |
% |
|
|
21.7 |
% |
|
|
(280 |
) |
|
|
17.1 |
% |
|
|
180 |
|
|
|
18.1 |
% |
|
|
22.9 |
% |
|
|
(480 |
) |
Income before income taxes |
|
|
22.4 |
% |
|
|
17.9 |
% |
|
|
450 |
|
|
|
22.9 |
% |
|
|
(50 |
) |
|
|
21.8 |
% |
|
|
15.5 |
% |
|
|
630 |
|
Effective tax rate |
|
|
25.0 |
% |
|
|
23.9 |
% |
|
|
110 |
|
|
|
25.0 |
% |
|
|
- |
|
|
|
24.7 |
% |
|
|
24.4 |
% |
|
|
30 |
|
Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2021 Earnings Release |
Page 5 of 17 |
Consolidated Financial Information and Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|||||||||||||||||
(Unaudited, $ in 000s except percentages and per share data) |
|
9/30/2021 |
|
|
9/30/2020 |
|
|
% Change |
|
|
6/30/2021 |
|
|
% Change |
|
|||||
Financial Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
30,820,334 |
|
|
$ |
25,549,182 |
|
|
|
20.6 |
% |
|
$ |
29,744,764 |
|
|
|
3.6 |
% |
Total shareholders' equity |
|
$ |
4,791,324 |
|
|
$ |
4,030,687 |
|
|
|
18.9 |
% |
|
$ |
4,508,790 |
|
|
|
6.3 |
% |
Total common equity |
|
$ |
4,106,324 |
|
|
$ |
3,495,687 |
|
|
|
17.5 |
% |
|
$ |
3,973,790 |
|
|
|
3.3 |
% |
Less: Goodwill and intangible assets |
|
$ |
(1,310,038 |
) |
|
$ |
(1,327,470 |
) |
|
|
(1.3 |
%) |
|
$ |
(1,314,818 |
) |
|
|
(0.4 |
%) |
Less: DTL on goodwill and intangible assets |
|
$ |
55,430 |
|
|
$ |
50,389 |
|
|
|
10.0 |
% |
|
$ |
54,049 |
|
|
|
2.6 |
% |
Tangible common equity |
|
$ |
2,851,716 |
|
|
$ |
2,218,606 |
|
|
|
28.5 |
% |
|
$ |
2,713,021 |
|
|
|
5.1 |
% |
Preferred equity |
|
$ |
685,000 |
|
|
$ |
535,000 |
|
|
|
28.0 |
% |
|
$ |
535,000 |
|
|
|
28.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share (1)(3) |
|
$ |
39.38 |
|
|
$ |
33.97 |
|
|
|
15.9 |
% |
|
$ |
37.89 |
|
|
|
3.9 |
% |
Tangible book value per common share (1) (3) |
|
$ |
27.35 |
|
|
$ |
21.56 |
|
|
|
26.9 |
% |
|
$ |
25.87 |
|
|
|
5.7 |
% |
Return on common equity (4) |
|
|
17.9 |
% |
|
|
12.8 |
% |
|
|
|
|
|
|
19.4 |
% |
|
|
|
|
Non-GAAP return on common equity (2)(4) |
|
|
19.2 |
% |
|
|
14.0 |
% |
|
|
|
|
|
|
20.6 |
% |
|
|
|
|
Return on tangible common equity (5) |
|
|
25.9 |
% |
|
|
20.4 |
% |
|
|
|
|
|
|
28.6 |
% |
|
|
|
|
Non-GAAP return on tangible common equity (2)(5) |
|
|
27.7 |
% |
|
|
22.2 |
% |
|
|
|
|
|
|
30.5 |
% |
|
|
|
|
Pre-tax margin on net revenues |
|
|
22.4 |
% |
|
|
17.9 |
% |
|
|
|
|
|
|
22.9 |
% |
|
|
|
|
Non-GAAP pre-tax margin on net revenues (2) |
|
|
23.9 |
% |
|
|
19.4 |
% |
|
|
|
|
|
|
24.3 |
% |
|
|
|
|
Effective tax rate |
|
|
25.0 |
% |
|
|
23.9 |
% |
|
|
|
|
|
|
25.0 |
% |
|
|
|
|
Non-GAAP effective tax rate (2) |
|
|
25.0 |
% |
|
|
23.9 |
% |
|
|
|
|
|
|
25.0 |
% |
|
|
|
|
Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2021 Earnings Release |
Page 6 of 17 |
Regulatory Capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|||||||||||||||||
(Unaudited, $ in 000s except percentages) |
|
9/30/2021 |
|
|
9/30/2020 |
|
|
% Change |
|
|
6/30/2021 |
|
|
% Change |
|
|||||
SF Regulatory Capital (6): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital |
|
$ |
2,816,734 |
|
|
$ |
2,197,654 |
|
|
|
28.2 |
% |
|
$ |
2,672,682 |
|
|
|
5.4 |
% |
Tier 1 capital |
|
$ |
3,501,734 |
|
|
$ |
2,732,654 |
|
|
|
28.1 |
% |
|
$ |
3,207,682 |
|
|
|
9.2 |
% |
Risk-weighted assets |
|
$ |
16,993,177 |
|
|
$ |
14,226,930 |
|
|
|
19.4 |
% |
|
$ |
16,952,415 |
|
|
|
0.2 |
% |
Common equity tier 1 capital ratio |
|
|
16.6 |
% |
|
|
15.4 |
% |
|
|
|
|
|
|
15.8 |
% |
|
|
|
|
Tier 1 risk based capital ratio |
|
|
20.6 |
% |
|
|
19.2 |
% |
|
|
|
|
|
|
18.9 |
% |
|
|
|
|
Tier 1 leverage capital ratio |
|
|
12.0 |
% |
|
|
11.3 |
% |
|
|
|
|
|
|
11.7 |
% |
|
|
|
|
Stifel Bank & Trust Regulatory Capital (6): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital |
|
$ |
1,145,805 |
|
|
$ |
1,034,480 |
|
|
|
10.8 |
% |
|
$ |
1,069,763 |
|
|
|
7.1 |
% |
Tier 1 capital |
|
$ |
1,145,805 |
|
|
$ |
1,034,480 |
|
|
|
10.8 |
% |
|
$ |
1,069,763 |
|
|
|
7.1 |
% |
Risk-weighted assets |
|
$ |
10,727,146 |
|
|
$ |
8,828,450 |
|
|
|
21.5 |
% |
|
$ |
9,958,105 |
|
|
|
7.7 |
% |
Common equity tier 1 capital ratio |
|
|
10.7 |
% |
|
|
11.7 |
% |
|
|
|
|
|
|
10.7 |
% |
|
|
|
|
Tier 1 risk based capital ratio |
|
|
10.7 |
% |
|
|
11.7 |
% |
|
|
|
|
|
|
10.7 |
% |
|
|
|
|
Tier 1 leverage capital ratio |
|
|
7.0 |
% |
|
|
7.2 |
% |
|
|
|
|
|
|
7.0 |
% |
|
|
|
|
Stifel Bank Regulatory Capital (6): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital |
|
$ |
309,150 |
|
|
$ |
201,106 |
|
|
|
53.7 |
% |
|
$ |
326,622 |
|
|
|
(5.3 |
%) |
Tier 1 capital |
|
$ |
309,150 |
|
|
$ |
201,106 |
|
|
|
53.7 |
% |
|
$ |
326,622 |
|
|
|
(5.3 |
%) |
Risk-weighted assets |
|
$ |
1,480,711 |
|
|
$ |
1,117,013 |
|
|
|
32.6 |
% |
|
$ |
1,593,962 |
|
|
|
(7.1 |
%) |
Common equity tier 1 capital ratio |
|
|
20.9 |
% |
|
|
18.0 |
% |
|
|
|
|
|
|
20.5 |
% |
|
|
|
|
Tier 1 risk based capital ratio |
|
|
20.9 |
% |
|
|
18.0 |
% |
|
|
|
|
|
|
20.5 |
% |
|
|
|
|
Tier 1 leverage capital ratio |
|
|
7.1 |
% |
|
|
7.3 |
% |
|
|
|
|
|
|
7.1 |
% |
|
|
|
|
Stifel Net Capital: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net capital |
|
$ |
654,900 |
|
|
$ |
468,500 |
|
|
|
39.8 |
% |
|
$ |
614,500 |
|
|
|
6.6 |
% |
Excess net capital |
|
$ |
628,600 |
|
|
$ |
443,700 |
|
|
|
41.7 |
% |
|
$ |
584,000 |
|
|
|
7.6 |
% |
Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2021 Earnings Release |
Page 7 of 17 |
Global Wealth Management - Summary Results of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||||||||||||||||||
(Unaudited, $ in 000s except percentages) |
|
9/30/2021 |
|
|
9/30/2020 |
|
|
% Change |
|
|
6/30/2021 |
|
|
% Change |
|
|
9/30/2021 |
|
|
9/30/2020 |
|
|
% Change |
|
||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions |
|
$ |
133,998 |
|
|
$ |
120,600 |
|
|
|
11.1 |
% |
|
$ |
139,653 |
|
|
|
(4.0 |
%) |
|
$ |
421,156 |
|
|
$ |
373,653 |
|
|
|
12.7 |
% |
Principal transactions |
|
|
50,074 |
|
|
|
42,027 |
|
|
|
19.1 |
% |
|
|
55,209 |
|
|
|
(9.3 |
%) |
|
|
158,882 |
|
|
|
127,976 |
|
|
|
24.1 |
% |
Brokerage revenues |
|
|
184,072 |
|
|
|
162,627 |
|
|
|
13.2 |
% |
|
|
194,862 |
|
|
|
(5.5 |
%) |
|
|
580,038 |
|
|
|
501,629 |
|
|
|
15.6 |
% |
Asset management and service fees |
|
|
313,838 |
|
|
|
230,765 |
|
|
|
36.0 |
% |
|
|
295,847 |
|
|
|
6.1 |
% |
|
|
887,794 |
|
|
|
667,446 |
|
|
|
33.0 |
% |
Net interest |
|
|
130,341 |
|
|
|
108,181 |
|
|
|
20.5 |
% |
|
|
124,686 |
|
|
|
4.5 |
% |
|
|
372,802 |
|
|
|
368,427 |
|
|
|
1.2 |
% |
Investment banking (7) |
|
|
11,580 |
|
|
|
8,113 |
|
|
|
42.7 |
% |
|
|
11,898 |
|
|
|
(2.7 |
%) |
|
|
37,027 |
|
|
|
26,462 |
|
|
|
39.9 |
% |
Other income |
|
|
15,702 |
|
|
|
17,150 |
|
|
|
(8.4 |
%) |
|
|
10,274 |
|
|
|
52.8 |
% |
|
|
46,934 |
|
|
|
51,610 |
|
|
|
(9.1 |
%) |
Net revenues |
|
|
655,533 |
|
|
|
526,836 |
|
|
|
24.4 |
% |
|
|
637,567 |
|
|
|
2.8 |
% |
|
|
1,924,595 |
|
|
|
1,615,574 |
|
|
|
19.1 |
% |
Non-interest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
342,792 |
|
|
|
277,903 |
|
|
|
23.3 |
% |
|
|
341,367 |
|
|
|
0.4 |
% |
|
|
1,020,880 |
|
|
|
834,564 |
|
|
|
22.3 |
% |
Non-compensation operating expenses |
|
|
80,622 |
|
|
|
70,003 |
|
|
|
15.2 |
% |
|
|
68,895 |
|
|
|
17.0 |
% |
|
|
221,060 |
|
|
|
251,588 |
|
|
|
(12.1 |
%) |
Total non-interest expenses |
|
|
423,414 |
|
|
|
347,906 |
|
|
|
21.7 |
% |
|
|
410,262 |
|
|
|
3.2 |
% |
|
|
1,241,940 |
|
|
|
1,086,152 |
|
|
|
14.3 |
% |
Income before income taxes |
|
$ |
232,119 |
|
|
$ |
178,930 |
|
|
|
29.7 |
% |
|
$ |
227,305 |
|
|
|
2.1 |
% |
|
$ |
682,655 |
|
|
$ |
529,422 |
|
|
|
28.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percentage of net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
52.3 |
% |
|
|
52.7 |
% |
|
|
(40 |
) |
|
|
53.5 |
% |
|
|
(120 |
) |
|
|
53.0 |
% |
|
|
51.7 |
% |
|
|
130 |
|
Non-compensation operating expenses |
|
|
12.3 |
% |
|
|
13.3 |
% |
|
|
(100 |
) |
|
|
10.8 |
% |
|
|
150 |
|
|
|
11.5 |
% |
|
|
15.5 |
% |
|
|
(400 |
) |
Income before income taxes |
|
|
35.4 |
% |
|
|
34.0 |
% |
|
|
140 |
|
|
|
35.7 |
% |
|
|
(30 |
) |
|
|
35.5 |
% |
|
|
32.8 |
% |
|
|
270 |
|
Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2021 Earnings Release |
Page 8 of 17 |
Global Wealth Management - Statistical Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Three Months Ended |
|
|||||||||||||||||
(Unaudited, $ in 000s except financial advisors and locations) |
|
9/30/2021 |
|
|
9/30/2020 |
|
|
% Change |
|
|
6/30/2021 |
|
|
% Change |
|
|||||
Financial advisors |
|
|
2,212 |
|
|
|
2,177 |
|
|
|
1.6 |
% |
|
|
2,190 |
|
|
|
1.0 |
% |
Independent contractors |
|
|
90 |
|
|
|
94 |
|
|
|
(4.3 |
%) |
|
|
92 |
|
|
|
(2.2 |
%) |
Total financial advisors |
|
|
2,302 |
|
|
|
2,271 |
|
|
|
1.4 |
% |
|
|
2,282 |
|
|
|
0.9 |
% |
Locations |
|
|
447 |
|
|
|
451 |
|
|
|
(0.9 |
%) |
|
|
446 |
|
|
|
0.2 |
% |
Total client assets |
|
$ |
406,959,000 |
|
|
$ |
325,159,000 |
|
|
|
25.2 |
% |
|
$ |
402,442,000 |
|
|
|
1.1 |
% |
Fee-based client assets |
|
$ |
150,472,000 |
|
|
$ |
115,162,000 |
|
|
|
30.7 |
% |
|
$ |
148,838,000 |
|
|
|
1.1 |
% |
Brokerage assets |
|
$ |
256,487,000 |
|
|
$ |
209,997,000 |
|
|
|
22.1 |
% |
|
$ |
253,604,000 |
|
|
|
1.1 |
% |
Client money market and insured product |
|
$ |
24,974,000 |
|
|
$ |
20,367,000 |
|
|
|
22.6 |
% |
|
$ |
23,615,000 |
|
|
|
5.8 |
% |
Secured client lending (8) |
|
$ |
3,588,799 |
|
|
$ |
2,783,138 |
|
|
|
28.9 |
% |
|
$ |
3,451,625 |
|
|
|
4.0 |
% |
Asset Management and Service Fee Revenue ($ in 000s): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private Client Group (9) |
|
$ |
267,300 |
|
|
$ |
190,799 |
|
|
|
40.1 |
% |
|
$ |
249,273 |
|
|
|
7.2 |
% |
Asset Management |
|
|
33,145 |
|
|
|
27,539 |
|
|
|
20.4 |
% |
|
|
32,202 |
|
|
|
2.9 |
% |
Third-party Bank Sweep Program |
|
|
791 |
|
|
|
1,623 |
|
|
|
(51.3 |
%) |
|
|
1,516 |
|
|
|
(47.8 |
%) |
Other (10) |
|
|
12,626 |
|
|
|
10,821 |
|
|
|
16.7 |
% |
|
|
12,878 |
|
|
|
(2.0 |
%) |
Total asset management and service fee revenues |
|
$ |
313,862 |
|
|
$ |
230,782 |
|
|
|
36.0 |
% |
|
$ |
295,869 |
|
|
|
6.1 |
% |
Fee-based Assets ($ in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private Client Group (9) |
|
$ |
130,931 |
|
|
|
99,374 |
|
|
|
31.8 |
% |
|
$ |
129,565 |
|
|
|
1.1 |
% |
Asset Management |
|
|
33,655 |
|
|
|
27,196 |
|
|
|
23.7 |
% |
|
|
33,289 |
|
|
|
1.1 |
% |
Elimination (11) |
|
|
(14,114 |
) |
|
|
(11,408 |
) |
|
|
23.7 |
% |
|
|
(14,015 |
) |
|
|
0.7 |
% |
Total fee-based assets |
|
$ |
150,472 |
|
|
$ |
115,162 |
|
|
|
30.7 |
% |
|
$ |
148,839 |
|
|
|
1.1 |
% |
Third-party Bank Sweep Program |
|
$ |
6,051 |
|
|
$ |
4,691 |
|
|
|
29.0 |
% |
|
$ |
5,795 |
|
|
|
4.4 |
% |
ROA (bps) (12): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private Client Group (9) |
|
|
82.5 |
|
|
|
83.5 |
|
|
|
|
|
|
|
83.2 |
|
|
|
|
|
Asset Management |
|
|
39.4 |
|
|
|
40.5 |
|
|
|
|
|
|
|
38.7 |
|
|
|
|
|
Third-party Bank Sweep Program |
|
|
5.0 |
|
|
|
15.2 |
|
|
|
|
|
|
|
9.9 |
|
|
|
|
|
Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2021 Earnings Release |
Page 9 of 17 |
Institutional Group - Summary Results of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||||||||||||||||||
(Unaudited, $ in 000s except percentages) |
|
9/30/2021 |
|
|
9/30/2020 |
|
|
% Change |
|
|
6/30/2021 |
|
|
% Change |
|
|
9/30/2021 |
|
|
9/30/2020 |
|
|
% Change |
|
||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions |
|
$ |
55,241 |
|
|
$ |
52,054 |
|
|
|
6.1 |
% |
|
$ |
55,926 |
|
|
|
(1.2 |
%) |
|
$ |
177,276 |
|
|
$ |
187,127 |
|
|
|
(5.3 |
%) |
Principal transactions |
|
|
68,904 |
|
|
|
98,856 |
|
|
|
(30.3 |
%) |
|
|
97,388 |
|
|
|
(29.2 |
%) |
|
|
277,699 |
|
|
|
317,590 |
|
|
|
(12.6 |
%) |
Brokerage revenues |
|
|
124,145 |
|
|
|
150,910 |
|
|
|
(17.7 |
%) |
|
|
153,314 |
|
|
|
(19.0 |
%) |
|
|
454,975 |
|
|
|
504,717 |
|
|
|
(9.9 |
%) |
Capital raising |
|
|
152,481 |
|
|
|
129,179 |
|
|
|
18.0 |
% |
|
|
157,880 |
|
|
|
(3.4 |
%) |
|
|
505,618 |
|
|
|
333,442 |
|
|
|
51.6 |
% |
Advisory fees |
|
|
208,218 |
|
|
|
80,842 |
|
|
|
157.6 |
% |
|
|
206,665 |
|
|
|
0.8 |
% |
|
|
545,365 |
|
|
|
254,733 |
|
|
|
114.1 |
% |
Investment banking |
|
|
360,699 |
|
|
|
210,021 |
|
|
|
71.7 |
% |
|
|
364,545 |
|
|
|
(1.1 |
%) |
|
|
1,050,983 |
|
|
|
588,175 |
|
|
|
78.7 |
% |
Other income (13) |
|
|
7,440 |
|
|
|
2,434 |
|
|
|
205.7 |
% |
|
|
2,952 |
|
|
|
152.0 |
% |
|
|
13,218 |
|
|
|
807 |
|
|
nm |
|
|
Net revenues |
|
|
492,284 |
|
|
|
363,365 |
|
|
|
35.5 |
% |
|
|
520,811 |
|
|
|
(5.5 |
%) |
|
|
1,519,176 |
|
|
|
1,093,699 |
|
|
|
38.9 |
% |
Non-interest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
283,063 |
|
|
|
210,754 |
|
|
|
34.3 |
% |
|
|
299,469 |
|
|
|
(5.5 |
%) |
|
|
884,156 |
|
|
|
658,162 |
|
|
|
34.3 |
% |
Non-compensation operating expenses |
|
|
84,129 |
|
|
|
75,770 |
|
|
|
11.0 |
% |
|
|
79,848 |
|
|
|
5.4 |
% |
|
|
251,246 |
|
|
|
233,907 |
|
|
|
7.4 |
% |
Total non-interest expenses |
|
|
367,192 |
|
|
|
286,524 |
|
|
|
28.2 |
% |
|
|
379,317 |
|
|
|
(3.2 |
%) |
|
|
1,135,402 |
|
|
|
892,069 |
|
|
|
27.3 |
% |
Income before income taxes |
|
$ |
125,092 |
|
|
$ |
76,841 |
|
|
|
62.8 |
% |
|
$ |
141,494 |
|
|
|
(11.6 |
%) |
|
$ |
383,774 |
|
|
$ |
201,630 |
|
|
|
90.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percentage of net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
57.5 |
% |
|
|
58.0 |
% |
|
|
(50 |
) |
|
|
57.5 |
% |
|
|
- |
|
|
|
58.2 |
% |
|
|
60.2 |
% |
|
|
(200 |
) |
Non-compensation operating expenses |
|
|
17.1 |
% |
|
|
20.9 |
% |
|
|
(380 |
) |
|
|
15.3 |
% |
|
|
180 |
|
|
|
16.5 |
% |
|
|
21.4 |
% |
|
|
(490 |
) |
Income before income taxes |
|
|
25.4 |
% |
|
|
21.1 |
% |
|
|
430 |
|
|
|
27.2 |
% |
|
|
(180 |
) |
|
|
25.3 |
% |
|
|
18.4 |
% |
|
|
690 |
|
Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2021 Earnings Release |
Page 10 of 17 |
Stifel Bancorp - Financial Information and Credit Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|||||||||||||||||
(Unaudited, $ in 000s except percentages) |
|
9/30/2021 |
|
|
9/30/2020 |
|
|
% Change |
|
|
6/30/2021 |
|
|
% Change |
|
|||||
Stifel Bancorp Financial Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
22,164,598 |
|
|
$ |
17,854,768 |
|
|
|
24.1 |
% |
|
$ |
21,250,293 |
|
|
|
4.3 |
% |
Total shareholder's equity |
|
$ |
1,607,936 |
|
|
$ |
1,378,981 |
|
|
|
16.6 |
% |
|
$ |
1,563,380 |
|
|
|
2.8 |
% |
Total loans, net (includes loans held for sale) |
|
$ |
13,658,697 |
|
|
$ |
10,932,235 |
|
|
|
24.9 |
% |
|
$ |
13,164,958 |
|
|
|
3.8 |
% |
Commercial and industrial |
|
|
5,033,313 |
|
|
|
4,080,939 |
|
|
|
23.3 |
% |
|
|
4,950,516 |
|
|
|
1.7 |
% |
Residential real estate |
|
|
4,952,372 |
|
|
|
3,804,836 |
|
|
|
30.2 |
% |
|
|
4,567,467 |
|
|
|
8.4 |
% |
Securities-based loans |
|
|
2,581,705 |
|
|
|
1,841,516 |
|
|
|
40.2 |
% |
|
|
2,331,737 |
|
|
|
10.7 |
% |
Commercial real estate |
|
|
369,502 |
|
|
|
386,957 |
|
|
|
(4.5 |
%) |
|
|
370,517 |
|
|
|
(0.3 |
%) |
Other |
|
|
694,395 |
|
|
|
639,440 |
|
|
|
8.6 |
% |
|
|
678,570 |
|
|
|
2.3 |
% |
Loans held for sale |
|
|
156,110 |
|
|
|
281,475 |
|
|
|
(44.5 |
%) |
|
|
394,017 |
|
|
|
(60.4 |
%) |
Investment securities |
|
$ |
7,587,896 |
|
|
$ |
6,219,000 |
|
|
|
22.0 |
% |
|
$ |
7,264,849 |
|
|
|
4.4 |
% |
Available-for-sale securities, at fair value |
|
|
2,242,465 |
|
|
|
2,823,885 |
|
|
|
(20.6 |
%) |
|
|
2,279,678 |
|
|
|
(1.6 |
%) |
Held-to-maturity securities, at amortized cost |
|
|
5,345,431 |
|
|
|
3,395,115 |
|
|
|
57.4 |
% |
|
|
4,985,171 |
|
|
|
7.2 |
% |
Total deposits |
|
$ |
20,398,874 |
|
|
$ |
16,400,001 |
|
|
|
24.4 |
% |
|
$ |
19,608,800 |
|
|
|
4.0 |
% |
Demand deposits (interest-bearing) |
|
|
19,729,032 |
|
|
|
16,017,047 |
|
|
|
23.2 |
% |
|
|
18,908,576 |
|
|
|
4.3 |
% |
Demand deposits (non interest-bearing) |
|
|
635,059 |
|
|
|
271,056 |
|
|
|
134.3 |
% |
|
|
643,890 |
|
|
|
(1.4 |
%) |
Certificates of deposit |
|
|
34,783 |
|
|
|
111,898 |
|
|
|
(68.9 |
%) |
|
|
56,334 |
|
|
|
(38.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
$ |
114,531 |
|
|
$ |
135,275 |
|
|
|
(15.3 |
%) |
|
$ |
115,190 |
|
|
|
(0.6 |
%) |
Allowance as a percentage of retained loans |
|
|
0.84 |
% |
|
|
1.26 |
% |
|
|
|
|
|
|
0.90 |
% |
|
|
|
|
Net charge-offs as a percentage of average loans |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
|
|
|
|
0.03 |
% |
|
|
|
|
Total nonperforming assets |
|
$ |
8,449 |
|
|
$ |
14,615 |
|
|
|
(42.2 |
%) |
|
$ |
9,808 |
|
|
|
(13.9 |
%) |
Nonperforming assets as a percentage of total assets |
|
|
0.04 |
% |
|
|
0.08 |
% |
|
|
|
|
|
|
0.05 |
% |
|
|
|
|
Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2021 Earnings Release |
Page 11 of 17 |
Loans and Lending Commitments - Allowance for Credit Losses |
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and Lending |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, $ in 000s except percentages) |
|
Commitments |
|
|
ACL |
|
|
ACL % |
|
|
Q3 Provision |
|
||||
Commercial and industrial |
|
$ |
5,033,313 |
|
|
$ |
46,687 |
|
|
|
0.9 |
% |
|
$ |
(256 |
) |
Residential real estate |
|
|
4,952,372 |
|
|
|
23,904 |
|
|
|
0.5 |
% |
|
|
2,637 |
|
Securities-based loans |
|
|
2,581,705 |
|
|
|
3,327 |
|
|
|
0.1 |
% |
|
|
808 |
|
Commercial real estate |
|
|
369,502 |
|
|
|
5,321 |
|
|
|
1.4 |
% |
|
|
(6,582 |
) |
Other |
|
|
694,395 |
|
|
|
15,054 |
|
|
|
2.2 |
% |
|
|
(1,510 |
) |
Loans held for investment, gross |
|
|
13,631,287 |
|
|
|
94,293 |
|
|
|
0.7 |
% |
|
|
(4,903 |
) |
Loans held for sale |
|
|
156,110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans, gross |
|
|
13,787,397 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lending commitments |
|
|
3,519,000 |
|
|
|
20,238 |
|
|
|
0.6 |
% |
|
|
4,243 |
|
Loans and lending commitments |
|
$ |
17,306,397 |
|
|
$ |
114,531 |
|
|
|
|
|
|
$ |
(660 |
) |
Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2021 Earnings Release |
Page 12 of 17 |
Consolidated Net Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Three Months Ended |
|
|||||||||||||||||||||||||||||||||
|
|
September 30, 2021 |
|
|
September 30, 2020 |
|
|
June 30, 2021 |
|
|||||||||||||||||||||||||||
($ in millions, except percentages) |
|
Average balance |
|
|
Interest income/expense |
|
|
Average interest rate |
|
|
Average balance |
|
|
Interest income/expense |
|
|
Average interest rate |
|
|
Average balance |
|
|
Interest income/expense |
|
|
Average interest rate |
|
|||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and federal funds sold |
|
$ |
1,537.9 |
|
|
$ |
1.0 |
|
|
|
0.27 |
% |
|
$ |
1,789.8 |
|
|
$ |
1.1 |
|
|
|
0.25 |
% |
|
$ |
1,249.2 |
|
|
$ |
0.8 |
|
|
|
0.26 |
% |
Financial instruments owned |
|
|
1,001.2 |
|
|
|
3.6 |
|
|
|
1.43 |
% |
|
|
801.3 |
|
|
|
2.9 |
|
|
|
1.46 |
% |
|
|
979.7 |
|
|
|
2.5 |
|
|
|
1.04 |
% |
Margin balances |
|
|
1,081.0 |
|
|
|
6.6 |
|
|
|
2.45 |
% |
|
|
872.5 |
|
|
|
5.8 |
|
|
|
2.66 |
% |
|
|
1,059.3 |
|
|
|
6.3 |
|
|
|
2.37 |
% |
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-backed securities |
|
|
5,393.1 |
|
|
|
25.2 |
|
|
|
1.87 |
% |
|
|
4,838.7 |
|
|
|
25.3 |
|
|
|
2.09 |
% |
|
|
5,132.9 |
|
|
|
22.8 |
|
|
|
1.77 |
% |
Mortgage-backed securities |
|
|
1,068.4 |
|
|
|
3.7 |
|
|
|
1.40 |
% |
|
|
824.0 |
|
|
|
3.2 |
|
|
|
1.55 |
% |
|
|
1,070.5 |
|
|
|
4.1 |
|
|
|
1.53 |
% |
Corporate fixed income securities |
|
|
775.7 |
|
|
|
5.3 |
|
|
|
2.72 |
% |
|
|
551.8 |
|
|
|
3.5 |
|
|
|
2.50 |
% |
|
|
709.7 |
|
|
|
4.6 |
|
|
|
2.61 |
% |
Other |
|
|
4.9 |
|
|
|
- |
|
|
|
1.95 |
% |
|
|
7.3 |
|
|
|
- |
|
|
|
2.04 |
% |
|
|
5.8 |
|
|
|
- |
|
|
|
2.11 |
% |
Total investments |
|
|
7,242.1 |
|
|
|
34.2 |
|
|
|
1.89 |
% |
|
|
6,221.8 |
|
|
|
32.0 |
|
|
|
2.06 |
% |
|
|
6,918.9 |
|
|
|
31.5 |
|
|
|
1.82 |
% |
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
4,915.9 |
|
|
|
40.9 |
|
|
|
3.33 |
% |
|
|
4,036.3 |
|
|
|
30.1 |
|
|
|
2.98 |
% |
|
|
5,055.4 |
|
|
|
43.3 |
|
|
|
3.43 |
% |
Residential real estate |
|
|
4,743.3 |
|
|
|
30.7 |
|
|
|
2.59 |
% |
|
|
3,711.2 |
|
|
|
26.1 |
|
|
|
2.81 |
% |
|
|
4,296.5 |
|
|
|
28.5 |
|
|
|
2.66 |
% |
Securities-based loans |
|
|
2,425.0 |
|
|
|
11.7 |
|
|
|
1.94 |
% |
|
|
1,787.1 |
|
|
|
9.2 |
|
|
|
2.05 |
% |
|
|
2,214.1 |
|
|
|
10.8 |
|
|
|
1.94 |
% |
Commercial real estate |
|
|
365.3 |
|
|
|
3.4 |
|
|
|
3.77 |
% |
|
|
400.0 |
|
|
|
3.8 |
|
|
|
3.76 |
% |
|
|
417.7 |
|
|
|
3.0 |
|
|
|
2.89 |
% |
Loans held for sale |
|
|
364.1 |
|
|
|
2.8 |
|
|
|
3.02 |
% |
|
|
460.1 |
|
|
|
2.6 |
|
|
|
2.25 |
% |
|
|
286.7 |
|
|
|
1.6 |
|
|
|
2.20 |
% |
Other |
|
|
677.4 |
|
|
|
5.6 |
|
|
|
3.30 |
% |
|
|
602.9 |
|
|
|
4.5 |
|
|
|
3.02 |
% |
|
|
688.6 |
|
|
|
5.2 |
|
|
|
3.03 |
% |
Total loans |
|
|
13,491.0 |
|
|
|
95.1 |
|
|
|
2.82 |
% |
|
|
10,997.6 |
|
|
|
76.3 |
|
|
|
2.77 |
% |
|
|
12,959.0 |
|
|
|
92.4 |
|
|
|
2.85 |
% |
Other interest-bearing assets |
|
|
702.5 |
|
|
|
1.3 |
|
|
|
0.74 |
% |
|
|
547.7 |
|
|
|
(3.7 |
) |
|
|
(2.69 |
%) |
|
|
698.9 |
|
|
|
0.1 |
|
|
|
0.01 |
% |
Total interest-bearing assets/ interest income |
|
|
25,055.7 |
|
|
|
141.8 |
|
|
|
2.26 |
% |
|
|
21,230.7 |
|
|
|
114.4 |
|
|
|
2.16 |
% |
|
|
23,865.0 |
|
|
|
133.6 |
|
|
|
2.24 |
% |
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior notes |
|
|
1,113.0 |
|
|
|
11.9 |
|
|
|
4.26 |
% |
|
|
1,411.8 |
|
|
|
15.4 |
|
|
|
4.37 |
% |
|
|
1,112.7 |
|
|
|
12.0 |
|
|
|
4.30 |
% |
Deposits |
|
|
19,545.5 |
|
|
|
1.1 |
|
|
|
0.02 |
% |
|
|
16,379.2 |
|
|
|
1.5 |
|
|
|
0.04 |
% |
|
|
18,637.1 |
|
|
|
1.2 |
|
|
|
0.03 |
% |
Federal Home Loan advances |
|
|
5.7 |
|
|
|
- |
|
|
|
0.28 |
% |
|
|
157.1 |
|
|
|
0.5 |
|
|
|
1.31 |
% |
|
|
60.3 |
|
|
|
- |
|
|
|
0.27 |
% |
Other interest-bearing liabilities |
|
|
1,346.0 |
|
|
|
(3.0 |
) |
|
|
(0.87 |
%) |
|
|
1,071.6 |
|
|
|
(3.6 |
) |
|
|
(1.34 |
%) |
|
|
1,441.9 |
|
|
|
1.0 |
|
|
|
0.26 |
% |
Total interest-bearing liabilities/ interest expense |
|
$ |
22,010.2 |
|
|
|
10.0 |
|
|
|
0.18 |
% |
|
$ |
19,019.7 |
|
|
|
13.8 |
|
|
|
0.29 |
% |
|
$ |
21,252.0 |
|
|
|
14.2 |
|
|
|
0.27 |
% |
Net interest income/margin |
|
|
|
|
|
$ |
131.8 |
|
|
|
2.10 |
% |
|
|
|
|
|
$ |
100.6 |
|
|
|
1.90 |
% |
|
|
|
|
|
$ |
119.4 |
|
|
|
2.00 |
% |
Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2021 Earnings Release |
Page 13 of 17 |
Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2021 Earnings Release |
Page 14 of 17 |
Stifel Bancorp Net Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Three Months Ended |
|
|||||||||||||||||||||||||||||||||
|
|
September 30, 2021 |
|
|
September 30, 2020 |
|
|
June 30, 2021 |
|
|||||||||||||||||||||||||||
($ in millions, except percentages) |
|
Average balance |
|
|
Interest income/expense |
|
|
Average interest rate |
|
|
Average balance |
|
|
Interest income/expense |
|
|
Average interest rate |
|
|
Average balance |
|
|
Interest income/expense |
|
|
Average interest rate |
|
|||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and federal funds sold |
|
$ |
730.0 |
|
|
$ |
0.3 |
|
|
|
0.19 |
% |
|
$ |
786.0 |
|
|
$ |
0.3 |
|
|
|
0.14 |
% |
|
$ |
611.9 |
|
|
$ |
0.2 |
|
|
|
0.14 |
% |
Investments |
|
|
7,242.1 |
|
|
|
34.2 |
|
|
|
1.89 |
% |
|
|
6,221.8 |
|
|
|
32.0 |
|
|
|
2.06 |
% |
|
|
6,918.9 |
|
|
|
31.5 |
|
|
|
1.82 |
% |
Loans |
|
|
13,491.0 |
|
|
|
95.1 |
|
|
|
2.82 |
% |
|
|
10,997.6 |
|
|
|
76.3 |
|
|
|
2.77 |
% |
|
|
12,959.0 |
|
|
|
92.4 |
|
|
|
2.85 |
% |
Other interest-bearing assets |
|
|
43.5 |
|
|
|
0.4 |
|
|
|
3.10 |
% |
|
|
42.9 |
|
|
|
0.2 |
|
|
|
2.86 |
% |
|
|
44.5 |
|
|
|
0.4 |
|
|
|
3.21 |
% |
Total interest-bearing assets/ interest income |
|
$ |
21,506.6 |
|
|
$ |
130.0 |
|
|
|
2.42 |
% |
|
$ |
18,048.3 |
|
|
$ |
108.8 |
|
|
|
2.41 |
% |
|
$ |
20,534.3 |
|
|
$ |
124.5 |
|
|
|
2.42 |
% |
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
$ |
19,545.5 |
|
|
$ |
1.1 |
|
|
|
0.02 |
% |
|
$ |
16,379.2 |
|
|
$ |
1.5 |
|
|
|
0.04 |
% |
|
$ |
18,637.1 |
|
|
$ |
1.2 |
|
|
|
0.03 |
% |
Federal Home Loan advances |
|
|
5.7 |
|
|
|
- |
|
|
|
0.28 |
% |
|
|
157.1 |
|
|
|
0.5 |
|
|
|
1.31 |
% |
|
|
60.3 |
|
|
|
- |
|
|
|
0.27 |
% |
Other interest-bearing liabilities |
|
|
1.3 |
|
|
|
- |
|
|
|
6.87 |
% |
|
|
1.5 |
|
|
|
- |
|
|
|
6.08 |
% |
|
|
1.3 |
|
|
|
0.1 |
|
|
|
7.44 |
% |
Total interest-bearing liabilities/ interest expense |
|
$ |
19,552.5 |
|
|
|
1.1 |
|
|
|
0.02 |
% |
|
$ |
16,537.8 |
|
|
|
2.0 |
|
|
|
0.05 |
% |
|
$ |
18,698.7 |
|
|
|
1.3 |
|
|
|
0.03 |
% |
Net interest income/margin |
|
|
|
|
|
$ |
128.9 |
|
|
|
2.40 |
% |
|
|
|
|
|
$ |
106.8 |
|
|
|
2.37 |
% |
|
|
|
|
|
$ |
123.2 |
|
|
|
2.40 |
% |
Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2021 Earnings Release |
Page 15 of 17 |
GAAP to Core Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||||||||||||||||||
(Unaudited, $ in 000s except percentages) |
|
9/30/2021 |
|
|
9/30/2020 |
|
|
Change |
|
|
6/30/2021 |
|
|
Change |
|
|
9/30/2021 |
|
|
9/30/2020 |
|
|
Change |
|
||||||||
GAAP net revenues |
|
$ |
1,144,938 |
|
|
$ |
883,300 |
|
|
|
|
|
|
$ |
1,153,136 |
|
|
|
|
|
|
$ |
3,432,863 |
|
|
$ |
2,692,151 |
|
|
|
|
|
Non-GAAP adjustments |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
(38 |
) |
|
|
|
|
|
|
153 |
|
|
|
179 |
|
|
|
|
|
Non-GAAP net revenues |
|
|
1,144,938 |
|
|
|
883,300 |
|
|
|
|
|
|
|
1,153,098 |
|
|
|
|
|
|
|
3,433,016 |
|
|
|
2,692,330 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP compensation and benefits expense |
|
|
672,385 |
|
|
|
533,638 |
|
|
|
|
|
|
|
692,054 |
|
|
|
|
|
|
|
2,062,353 |
|
|
|
1,657,991 |
|
|
|
|
|
Merger-related (14) |
|
|
(5,780 |
) |
|
|
(6,770 |
) |
|
|
|
|
|
|
(6,119 |
) |
|
|
|
|
|
|
(18,073 |
) |
|
|
(22,907 |
) |
|
|
|
|
Non-GAAP compensation and benefits expense |
|
|
666,605 |
|
|
|
526,868 |
|
|
|
|
|
|
|
685,935 |
|
|
|
|
|
|
|
2,044,280 |
|
|
|
1,635,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP non-compensation operating expenses |
|
|
216,051 |
|
|
|
191,269 |
|
|
|
|
|
|
|
197,057 |
|
|
|
|
|
|
|
622,091 |
|
|
|
617,701 |
|
|
|
|
|
Merger-related (14) |
|
|
(11,503 |
) |
|
|
(6,219 |
) |
|
|
|
|
|
|
(10,287 |
) |
|
|
|
|
|
|
(30,854 |
) |
|
|
(19,672 |
) |
|
|
|
|
Non-GAAP non-compensation operating expenses |
|
|
204,548 |
|
|
|
185,050 |
|
|
|
|
|
|
|
186,770 |
|
|
|
|
|
|
|
591,237 |
|
|
|
598,029 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP provision for income taxes |
|
|
64,126 |
|
|
|
37,866 |
|
|
|
|
|
|
|
65,948 |
|
|
|
|
|
|
|
184,951 |
|
|
|
101,456 |
|
|
|
|
|
Merger-related and other (14) |
|
|
4,317 |
|
|
|
3,094 |
|
|
|
|
|
|
|
4,089 |
|
|
|
|
|
|
|
12,136 |
|
|
|
10,384 |
|
|
|
|
|
Non-GAAP provision for income taxes |
|
|
68,443 |
|
|
|
40,960 |
|
|
|
|
|
|
|
70,037 |
|
|
|
|
|
|
|
197,087 |
|
|
|
111,840 |
|
|
|
|
|
Total merger-related adjustments |
|
|
(17,283 |
) |
|
|
(12,989 |
) |
|
|
|
|
|
|
(16,368 |
) |
|
|
|
|
|
|
(49,080 |
) |
|
|
(42,758 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
58.2 |
% |
|
|
59.6 |
% |
|
|
(140 |
) |
|
|
59.5 |
% |
|
|
(130 |
) |
|
|
59.5 |
% |
|
|
60.7 |
% |
|
|
(120 |
) |
Non-compensation operating expenses |
|
|
17.9 |
% |
|
|
21.0 |
% |
|
|
(310 |
) |
|
|
16.2 |
% |
|
|
170 |
|
|
|
17.3 |
% |
|
|
22.2 |
% |
|
|
(490 |
) |
Income before income taxes |
|
|
23.9 |
% |
|
|
19.4 |
% |
|
|
450 |
|
|
|
24.3 |
% |
|
|
(40 |
) |
|
|
23.2 |
% |
|
|
17.1 |
% |
|
|
610 |
|
Effective tax rate |
|
|
25.0 |
% |
|
|
23.9 |
% |
|
|
110 |
|
|
|
25.0 |
% |
|
|
- |
|
|
|
24.7 |
% |
|
|
24.4 |
% |
|
|
30 |
|
Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2021 Earnings Release |
Page 16 of 17 |
Footnotes |
||
|
|
|
(1) |
|
All share and per share information has been retroactively adjusted to reflect the December 2020 three-for-two stock split. |
(2) |
|
Please refer to the GAAP to Core Reconciliation for a reconciliation of the Company’s GAAP results to these non-GAAP measures. |
(3) |
|
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. |
(4) |
|
Annualized return on average common shareholders’ equity (“ROE”) is calculated by dividing annualized net income applicable to common shareholders by average common shareholders’ equity or, in the case of non-GAAP ROE, calculated by dividing non-GAAP net income applicable to commons shareholders by average common shareholders’ equity. |
(5) |
|
Annualized return on average tangible common shareholders’ equity (“ROTE”) is calculated by dividing annualized net income applicable to common shareholders by average tangible shareholders’ equity or, in the case of non-GAAP ROTE, calculated by dividing non-GAAP net income applicable to common shareholders by average tangible shareholders’ equity. Tangible common shareholders’ equity 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 $54.5 million, $49.6 million, and $53.1 million, as of September 30, 2021 and 2020, and June 30, 2021, respectively. Historical periods have been restated to conform with the current period presentation. |
(6) |
|
Regulatory capital amounts and ratios are estimates at the time of the Company's earnings release on October 27, 2021. |
(7) |
|
Includes capital raising and advisory fee revenues. |
(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 quarterly balances for Individual Program Banks. |
(13) |
|
Includes net interest, asset management and service fees, and other income. |
(14) |
|
Primarily related to charges attributable to integration-related activities, signing bonuses, amortization of restricted stock awards and promissory notes issued as retention, 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 | Third Quarter 2021 Earnings Release |
Page 17 of 17 |
Disclaimer and Legal Notice |
|
|
|
|
|
|
|
|
|
|
|
|
Stifel Financial Corp. Quarterly Financial Supplement | Third Quarter 2021 Earnings Release |
Page 18 of 17 |
3rd Quarter 2021 Financial Results Presentation October 27, 2021 Exhibit 99.3
Record Nine Month Net Revenue Third Quarter & YTD Snapshot 1 3Q21 & YTD Results millions, except per share and ratios HIGHLIGHTS Record Nine Month Pre-tax Income & EPS Record Quarterly & Nine Month Global Wealth Management Revenue Record Nine Month Institutional Group Revenue Record Investment Banking Advisory Pipelines Announced Acquisition of Vining Sparks
Third Quarter Results 2 THIRD QUARTER HIGHLIGHTS Second Highest Quarterly Non-GAAP Net Revenue of $1.15 billion, up 30% Y/Y: Record Global Wealth Management Revenue of $656 million, up 24% Y/Y Third Highest Quarterly Institutional Group Revenue of $492 million, up 36% Non-GAAP Pre-tax Margin of 23.9%, up 450 bps Y/Y Fee-based Client Assets of $150 billion, up 31% Y/Y Tangible Book Value Per Share of $27.35, up 27% Y/Y Non-GAAP annualized ROTCE of 27.7%, up 550 basis points Y/Y Operating Expense = Non-Compensation Expense – Provision for Credit Loss Operating Expense Ratio excludes Provision for Credit Loss)
Impressive Track Record of Growth 3 2015 & 2016 exclude duplicative acquisition costs Earnings per share have been adjusted to reflect December 2020 three for two stock split Non-GAAP Annualized 2021 based on annualized results through 9/30/2021
Vining Sparks Acquisition 4 Vining Sparks Founded in 1981 & Headquartered in Memphis, TN A Client-centered Financial Partner that Offers Strategic Balance Sheet & Investment Solutions Focused on Depositories Approximately 275 Associates in 13 Offices Approximately 4,000 Institutional Clients Averaged Approximately $150 million in Annual Revenue Since 2008 More than $150 billion in Annual Trading Volume Approximately $100 million in Equity Capital Highly Complementary Depository Focus More than 300 Fixed Income Professionals Focused on Banks & Thrifts on a Combined Basis More than 1,600 Unique Bank & Thrift s Covered on a Combined Basis Only 5% Net Revenue Overlap Solid Synergy Opportunities Through Capital Offerings and M&A Opportunities Across Vining Sparks Core Relationships Revenue from Bank & Thrift Clients by Type Revenue from Bank & Thrift Clients by Asset Size
HIGHLIGHTS Record Quarterly Net Revenue of $656 million, up 24% Y/Y Record Quarterly Wealth Management Revenue, ex. Stifel Bancorp Inc., of $505 million Record First Nine Months Net Revenue of $1.93 billion, up 19% Y/Y Private Client Fee-based Assets Increased 32% Y/Y Added 46 Financial Advisors with Total Trailing Twelve Month Production of $35 million. Global Wealth Management 5
Wealth Management Metrics 6 EFFICIENT BUSINESS MODEL Advisors are empowered to do what is right for their clients Product-neutral compensation – not motivated by comp to use specific products or services Product desks are not layered profit centers Supervisory function is centralized for efficiency and neutral approach Advisors have direct access to knowledgeable home office associates to collaboratively deliver services to clients Technology to support advice-based model Stifel Wealth Tracker – online and mobile app: free/ secure / smart aggregation / budgeting tools / advice when you want it / understand the markets / understand your complete financial picture Performance reporting tools – enhanced platform-wide capabilities with key vendor partners collaborating Cash management and digital banking capabilities in WM platform, including client mobile app Video meetings, centralized technology support DYNAMIC BUSINESS Announced renewed focus on recruiting independent FAs & rebranded business to Stifel Independent Advisors 85% of FAs who joined Stifel in past 10 years came through organic recruiting, 15% through acquisitions Recruited remotely during pandemic Growth of average AUM Adding capabilities that attract FAs and differentiate Stifel Stifel Wealth Tracker OurCrowd access to early-stage venture sponsors
Institutional Group 7 * Includes net interest, asset management and service fees, and other income HIGHLIGHTS Record Results: Quarterly Advisory Revenue of $208 million, up 158% Y/Y First Nine Months Net Revenue of $1.52 billion, up 39% Y/Y First Nine Months Advisory Revenue of $545 million, up 114% Y/Y First Nine Months Capital Raising Revenue of $506 million, up 52% Y/Y Pre-tax Margin of 25.4%, up 430 bps Y/Y * 2021 revenue based on annualized results through 9/30/2021
highlights Record Quarterly Capital Raising Revenue Surpassed Prior Record by 6% (2Q21) Second Highest First Nine Months Institutional Fixed Income Brokerage Revenue Second Highest First Nine Months Institutional Fixed Income Revenue Lead Managed 257 Negotiated Municipal Offerings Institutional Equities & Fixed Income 8 highlights Record First Nine Months Institutional Equities Revenue Record First Nine Months Institutional Equities Brokerage Revenue Record First Nine Months Capital Raising Revenue Bar chart header numbers are a graphic
Investment Banking Revenue 9 Highlights Record Quarterly Advisory Revenue, up 158% Y/Y Record First Nine Months Advisory Revenue, Surpassed Prior Record by 86% (2019) Record 3rd Quarter Capital Raising Revenue, up 19% Y/Y Record First Nine Months Investment Banking Revenue Surpassed Prior Record by 77% (2020) Strongest Verticals were Financials, Healthcare, Technology, Industrials Bar chart header numbers are a graphic * 2021 revenue based on annualized results through 6/30/2021 * Capital Raising Includes Revenue from Global Wealth Management
Net Interest Income 10 Net Interest commentary 3Q21 Net Interest Income Increased 10% sequentially. Average Interest Earning Assets Increased by $1.2 billion in 3Q21. Quarter End Deposits up 23% year-on-year More Highly Levered to Increased Short-term Interest Rates than in Past Cycles 2021: Estimated Incremental Pre-tax Income of $175-$200 million from a 100 bps increase in Fed Funds rate. 2015: Estimated Incremental Pre-tax Income of $66 million from a 100 bps increase in Fed Funds rate.
Stifel Bancorp Inc. Loan & Investment Portfolio 11 * Total excludes $156 million of loans classified as held for sale
CECL & Credit Metrics 12 ASSUMPTIONS Moody’s Forecast 40% Baseline (gradual recovery) 30% Downside (double dip recession) 30% Upside (accelerated recovery) Forecast Update for Most Recent Scenarios Broad-based Improvement of Forecasted Economic Variables Since June 30 Incorporated a Management Overlay to Offset Some of the Forecasted Economic Variables
Capital & Liquidity 13 HIGHLIGHTS Balance Sheet Growth of More than $4 billion YTD 2021, Increase of 16% YTD Client Cash Balances Continued to Increase in 3Q21 Capital Ratios Remained Strong Repurchased Nearly 1.5 million Shares YTD 2021 Issued $300 million of Preferred Stock in July 2021 Redeemed of $150 million of Series A Preferred Stock in 3Q21
Expenses 14 * For reconciliation of GAAP to non-GAAP expenses, refer to our third quarter 2021 earnings release. Bar chart header numbers are a graphic
Closing Remarks
Q&A
Disclaimer 17 Forward-Looking Statements This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks, assumptions, and uncertainties, including statements relating to the market opportunity and future business prospects of Stifel Financial Corp., as well as Stifel, Nicolaus & Company, Incorporated and its subsidiaries (collectively, “SF” or the “Company”). These statements can be identified by the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” and similar expressions. All statements not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. For information about the risks and important factors that could affect the Company’s future results, financial condition and liquidity, see “Risk Factors” in Part I of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Forward-looking statements speak only as to the date they are made. The Company disclaims any intent or obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. Statements about the effects of the COVID-19 pandemic on the Company’s business, results, financial position and liquidity may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Use of Non-GAAP Financial Measures The Company utilized certain non-GAAP calculations as additional measures to aid in understanding and analyzing the Company’s financial results for the three and nine months ended September 30, 2021. Specifically, the Company believes that the non-GAAP measures provide useful information by excluding certain items that may not be indicative of the Company’s core operating results and business outlook. The Company believes that these non-GAAP measures will allow for a better evaluation of the operating performance of the business and facilitate a meaningful comparison of the Company’s results in the current period to those in prior and future periods. Reference to these non-GAAP measures should not be considered as a substitute for results that are presented in a manner consistent with GAAP. These non-GAAP measures are provided to enhance investors' overall understanding of the Company’s current financial performance. The non-GAAP financial information should be considered in addition to, not as a substitute for or as being superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP. These non-GAAP measures primarily exclude expenses which management believes are, in some instances, non-recurring and not representative of ongoing business. A limitation of utilizing these non-GAAP measures is that the GAAP accounting effects of these charges do, in fact, reflect the underlying financial results of the Company’s business and these effects should not be ignored in evaluating and analyzing its financial results. Therefore, the Company believes that GAAP measures and the same respective non-GAAP measures of the Company’s financial performance should be considered together.
(_\ H8_^6F!_
M^93^I%O^#E,-_P V6@?]W%__ (B*KO\ \')FX@C]C$KCC_DXK/\ [PH5_+M1
M27!?#*VRW_R\S#_YJ#_7'B/_ *&/_EI@/_F4_J)7_@Y,V_\ -F'/K_PT5]/7
MX%'G ZU(/^#E C_FS#_S8O\ G_Q8KFOY