EX-99.2 3 d357552dex992.htm EX-99.2 EX-99.2

LOGO

 

Exhibit 99.2

Second Quarter 2022 Earnings Results

 

 

Quarterly Financial Supplement    Page  

Consolidated Financial Highlights

      2  

GAAP Consolidated Results of Operations

      3  

Non-GAAP Consolidated Results of Operations

      4  

Consolidated Financial Summary

      5  

Consolidated Financial Information and Metrics

      6  

Regulatory Capital

      7  

Global Wealth Management - Summary Results of Operations

      8  

Global Wealth Management - Statistical Information

      9  

Institutional Group - Summary Results of Operations

      10  

Stifel Bancorp - Financial Information and Credit Metrics

      11  

Loans and Lending Commitments - Allowance for Credit Losses

      12  

Consolidated Net Interest Income

      13  

Stifel Bancorp Net Interest Income

      14  

GAAP to Core Reconciliation

      15  

Footnotes

      16  

Disclaimer and Legal Notice

      17  

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2022 Earnings Release    Page 1 of 17

LOGO

 

Consolidated Financial Highlights

 

 

     Three Months Ended     Six Months Ended  
(Unaudited, 000s, except per share
information)		    6/30/2022      6/30/2021      % Change     3/31/2022      % Change     6/30/2022      6/30/2021      % Change  

Net revenues

    $ 1,108,126      $ 1,153,136        (3.9 %)    $ 1,116,527        (0.8 %)    $ 2,224,653      $ 2,287,925        (2.8 %) 

Net income

    $ 160,816      $ 198,077        (18.8 %)    $ 173,549        (7.3 %)    $ 334,365      $ 371,092        (9.9 %) 

Preferred dividends

      9,321        8,289        12.5 %      9,320        0.0 %      18,641        16,578        12.4 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net income available to common shareholders

    $ 151,495      $ 189,788        (20.2 %)    $ 164,229        (7.8 %)    $ 315,724      $ 354,514        (10.9 %) 

Earnings per diluted common share

    $ 1.37      $ 1.67        (18.0 %)    $ 1.47        (6.8 %)    $ 2.84      $ 3.14        (9.6 %) 

Earnings per diluted common share available to common shareholders

    $ 1.29      $ 1.60        (19.4 %)    $ 1.39        (7.2 %)    $ 2.68      $ 3.00        (10.7 %) 

Non-GAAP financial summary (1):

                      

Net revenues

    $ 1,108,127      $ 1,153,098        (3.9 %)    $ 1,116,587        (0.8 %)    $ 2,224,714      $ 2,288,078        (2.8 %) 

Net income

    $ 173,174      $ 210,356        (17.7 %)    $ 184,907        (6.3 %)    $ 358,081      $ 395,070        (9.4 %) 

Preferred dividends

      9,321        8,289        12.5 %      9,320        0.0 %      18,641        16,578        12.4 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net income available to common shareholders

    $ 163,853        202,067        (18.9 %)      175,587        (6.7 %)      339,440        378,492        (10.3 %) 

Earnings per diluted common share

    $ 1.48      $ 1.77        (16.4 %)    $ 1.57        (5.7 %)    $ 3.04      $ 3.34        (9.0 %) 

Earnings per diluted common share available to common shareholders

    $ 1.40      $ 1.70        (17.6 %)    $ 1.49        (6.0 %)    $ 2.88      $ 3.20        (10.0 %) 

Weighted average number of common shares outstanding:

                      

Basic

      109,083        107,837        1.2 %      109,205        (0.1 %)      109,144        107,795        1.3 % 

Diluted

      117,400        118,602        (1.0 %)      118,140        (0.6 %)      117,838        118,279        (0.4 %) 

Period end common shares outstanding

      106,166        104,865        1.2 %      106,626        (0.4 %)      106,166        104,865        1.2 % 

Cash dividends declared per common share

    $ 0.30      $ 0.15        100.0 %    $ 0.30        0.0 %    $ 0.60      $ 0.30        100.0 % 

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2022 Earnings Release    Page 2 of 17

LOGO

 

GAAP Consolidated Results of Operations

 

 

     Three Months Ended     Six Months Ended  
(Unaudited, 000s, except per share
information)		    6/30/2022     6/30/2021     % Change     3/31/2022      % Change     6/30/2022      6/30/2021     % Change  

Revenues:

                   

Commissions

    $ 186,681     $ 195,579       (4.5 %)    $ 195,909        (4.7 %)    $ 382,590      $ 409,193       (6.5 %) 

Principal transactions

      125,603       152,597       (17.7 %)      159,270        (21.1 %)      284,873        317,603       (10.3 %) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Transactional revenues

      312,284       348,176       (10.3 %)      355,179        (12.1 %)      667,463        726,796       (8.2 %) 

Capital raising

      71,519       169,778       (57.9 %)      73,450        (2.6 %)      144,969        378,584       (61.7 %) 

Advisory

      199,556       206,665       (3.4 %)      181,396        10.0 %      380,952        337,147       13.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Investment banking

      271,075       376,443       (28.0 %)      254,846        6.4 %      525,921        715,731       (26.5 %) 

Asset management

      331,264       295,869       12.0 %      341,636        (3.0 %)      672,900        574,016       17.2 % 

Other income

      (1,917 )      13,235       (114.5 %)      8,888        (121.6 %)      6,971        38,869       (82.1 %) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Operating revenues

      912,706       1,033,723       (11.7 %)      960,549        (5.0 %)      1,873,255        2,055,412       (8.9 %) 

Interest revenue

      212,754       133,591       59.3 %      165,435        28.6 %      378,189        261,131       44.8 % 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total revenues

      1,125,460       1,167,314       (3.6 %)      1,125,984        (0.0 %)      2,251,444        2,316,543       (2.8 %) 

Interest expense

      17,334       14,178       22.3 %      9,457        83.3 %      26,791        28,618       (6.4 %) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net revenues

      1,108,126       1,153,136       (3.9 %)      1,116,527        (0.8 %)      2,224,653        2,287,925       (2.8 %) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Non-interest expenses:

                   

Compensation and benefits

      652,709       692,054       (5.7 %)      673,691        (3.1 %)      1,326,400        1,389,968       (4.6 %) 

Occupancy and equipment rental

      78,251       70,971       10.3 %      77,026        1.6 %      155,277        143,003       8.6 % 

Communication and office supplies

      43,645       41,308       5.7 %      42,456        2.8 %      86,101        83,133       3.6 % 

Commissions and floor brokerage

      15,106       13,977       8.1 %      15,887        (4.9 %)      30,993        29,680       4.4 % 

Provision for credit losses

      12,785       (9,652 )      nm       8,240        55.2 %      21,025        (14,904 )      nm  

Other operating expenses

      87,089       80,453       8.2 %      72,118        20.8 %      159,207        165,128       (3.6 %) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total non-interest expenses

      889,585       889,111       0.1 %      889,418        0.0 %      1,779,003        1,796,008       (0.9 %) 

Income before income taxes

      218,541       264,025       (17.2 %)      227,109        (3.8 %)      445,650        491,917       (9.4 %) 

Provision for income taxes

      57,725       65,948       (12.5 %)      53,560        7.8 %      111,285        120,825       (7.9 %) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net income

      160,816       198,077       (18.8 %)      173,549        (7.3 %)      334,365        371,092       (9.9 %) 

Preferred dividends

      9,321       8,289       12.5 %      9,320        0.0 %      18,641        16,578       12.4 % 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net income available to common shareholders

    $ 151,495     $ 189,788       (20.2 %)    $ 164,229        (7.8 %)    $ 315,724      $ 354,514       (10.9 %) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Earnings per common share:

                   

Basic

    $ 1.39     $ 1.76       (21.0 %)    $ 1.50        (7.3 %)    $ 2.89      $ 3.29       (12.2 %) 

Diluted

    $ 1.29     $ 1.60       (19.4 %)    $ 1.39        (7.2 %)    $ 2.68      $ 3.00       (10.7 %) 

Weighted average number of common shares outstanding:

                   

Basic

      109,083       107,837       1.2 %      109,205        (0.1 %)      109,144        107,795       1.3 % 

Diluted

      117,400       118,602       (1.0 %)      118,140        (0.6 %)      117,838        118,279       (0.4 %) 

Cash dividends declared per common share

    $ 0.30     $ 0.15       100.0 %    $ 0.30        0.0 %    $ 0.60      $ 0.30       100.0 % 

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2022 Earnings Release    Page 3 of 17

LOGO

 

Non-GAAP Consolidated Results of Operations (1)

 

 

     Three Months Ended     Six Months Ended  
(Unaudited, 000s, except per share
information)		    6/30/2022     6/30/2021     % Change     3/31/2022      % Change     6/30/2022      6/30/2021     % Change  

Revenues:

                   

Commissions

    $ 186,681     $ 195,579       (4.5 %)    $ 195,909        (4.7 %)    $ 382,590      $ 409,193       (6.5 %) 

Principal transactions

      125,603       152,597       (17.7 %)      159,270        (21.1 %)      284,873        317,603       (10.3 %) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Transactional revenues

      312,284       348,176       (10.3 %)      355,179        (12.1 %)      667,463        726,796       (8.2 %) 

Capital raising

      71,519       169,778       (57.9 %)      73,450        (2.6 %)      144,969        378,584       (61.7 %) 

Advisory

      199,556       206,665       (3.4 %)      181,396        10.0 %      380,952        337,147       13.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Investment banking

      271,075       376,443       (28.0 %)      254,846        6.4 %      525,921        715,731       (26.5 %) 

Asset management

      331,264       295,869       12.0 %      341,636        (3.0 %)      672,900        574,016       17.2 % 

Other income

      (1,917 )      13,197       (114.5 %)      8,888        (121.6 %)      6,971        38,897       (82.1 %) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Operating revenues

      912,706       1,033,685       (11.7 %)      960,549        (5.0 %)      1,873,255        2,055,440       (8.9 %) 

Interest revenue

      212,754       133,591       59.3 %      165,435        28.6 %      378,189        261,131       44.8 % 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total revenues

      1,125,460       1,167,276       (3.6 %)      1,125,984        (0.0 %)      2,251,444        2,316,571       (2.8 %) 

Interest expense

      17,333       14,178       22.3 %      9,397        84.5 %      26,730        28,493       (6.2 %) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net revenues

      1,108,127       1,153,098       (3.9 %)      1,116,587        (0.8 %)      2,224,714        2,288,078       (2.8 %) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Non-interest expenses:

                   

Compensation and benefits

      643,535       685,935       (6.2 %)      664,380        (3.1 %)      1,307,915        1,377,675       (5.1 %) 

Occupancy and equipment rental

      77,884       70,938       9.8 %      77,009        1.1 %      154,893        142,939       8.4 % 

Communication and office supplies

      43,621       41,232       5.8 %      42,448        2.8 %      86,069        83,057       3.6 % 

Commissions and floor brokerage

      15,106       13,977       8.1 %      15,887        (4.9 %)      30,993        29,680       4.4 % 

Provision for credit losses

      12,785       (9,652 )      nm       8,240        55.2 %      21,025        (14,904 )      nm  

Other operating expenses

      79,864       70,275       13.6 %      66,661        19.8 %      146,525        145,917       0.4 % 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total non-interest expenses

      872,795       872,705       0.0 %      874,625        (0.2 %)      1,747,420        1,764,364       (1.0 %) 

Income before income taxes

      235,332       280,393       (16.1 %)      241,962        (2.7 %)      477,294        523,714       (8.9 %) 

Provision for income taxes

      62,158       70,037       (11.2 %)      57,055        8.9 %      119,213        128,644       (7.3 %) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net income

      173,174       210,356       (17.7 %)      184,907        (6.3 %)      358,081        395,070       (9.4 %) 

Preferred dividends

      9,321       8,289       12.5 %      9,320        0.0 %      18,641        16,578       12.4 % 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net income available to common shareholders

    $ 163,853     $ 202,067       (18.9 %)    $ 175,587        (6.7 %)    $ 339,440      $ 378,492       (10.3 %) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Earnings per common share:

                   

Basic

    $ 1.50     $ 1.87       (19.8 %)    $ 1.61        (6.8 %)    $ 3.11      $ 3.51       (11.4 %) 

Diluted

    $ 1.40     $ 1.70       (17.6 %)    $ 1.49        (6.0 %)    $ 2.88      $ 3.20       (10.0 %) 

Weighted average number of common shares outstanding:

                   

Basic

      109,083       107,837       1.2 %      109,205        (0.1 %)      109,144        107,795       1.3 % 

Diluted

      117,400       118,602       (1.0 %)      118,140        (0.6 %)      117,838        118,279       (0.4 %) 

Cash dividends declared per common share

    $ 0.30     $ 0.15       100.0 %    $ 0.30        0.0 %    $ 0.60      $ 0.30       100.0 % 

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2022 Earnings Release    Page 4 of 17

LOGO

 

Consolidated Financial Summary

 

 

     Three Months Ended     Six Months Ended  
(Unaudited, 000s)    6/30/2022     6/30/2021     % Change     3/31/2022     % Change     6/30/2022     6/30/2021     % Change  

Net revenues:

                 

Global Wealth Management

    $ 697,980     $ 637,567       9.5 %    $ 681,725       2.4 %    $ 1,379,705     $ 1,269,062       8.7 % 

Institutional Group

      411,364       520,811       (21.0 %)      431,363       (4.6 %)      842,727       1,026,892       (17.9 %) 

Other

      (1,218 )      (5,242 )      nm       3,439       nm       2,221       (8,029 )      nm  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenues

    $ 1,108,126     $ 1,153,136       (3.9 %)    $ 1,116,527       (0.8 %)    $ 2,224,653     $ 2,287,925       (2.8 %) 

Operating expenses:

                 

Global Wealth Management

    $ 452,828     $ 410,262       10.4 %    $ 456,312       (0.8 %)    $ 909,140     $ 818,526       11.1 % 

Institutional Group

      338,372       379,317       (10.8 %)      334,735       1.1 %      673,107       768,210       (12.4 %) 

Other

      98,385       99,532       (1.2 %)      98,371       0.0 %      196,756       209,272       (6.0 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

    $ 889,585     $ 889,111       0.1 %    $ 889,418       0.0 %    $ 1,779,003     $ 1,796,008       (0.9 %) 

Operating contribution:

                 

Global Wealth Management

    $ 245,152     $ 227,305       7.9 %    $ 225,413       8.8 %    $ 470,565     $ 450,536       4.4 % 

Institutional Group

      72,992       141,494       (48.4 %)      96,628       (24.5 %)      169,620       258,682       (34.4 %) 

Other

      (99,603 )      (104,774 )      (4.9 %)      (94,932 )      4.9 %      (194,535 )      (217,301 )      (10.5 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 218,541     $ 264,025       (17.2 %)    $ 227,109       (3.8 %)    $ 445,650     $ 491,917       (9.4 %) 

Financial ratios:

                 

Compensation and benefits

      58.9 %      60.0 %      (110 )      60.3 %      (140 )      59.6 %      60.8 %      (120 ) 

Non-compensation operating expenses

      21.4 %      17.1 %      430       19.4 %      200       20.4 %      17.7 %      270  

Income before income taxes

      19.7 %      22.9 %      (320 )      20.3 %      (60 )      20.0 %      21.5 %      (150 ) 

Effective tax rate

      26.4 %      25.0 %      140       23.6 %      280       25.0 %      24.6 %      40  

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2022 Earnings Release    Page 5 of 17

LOGO

 

Consolidated Financial Information and Metrics

 

 

     As of and for the Three Months Ended  
(Unaudited, 000s, except per share data)    6/30/2022     6/30/2021     % Change     3/31/2022     % Change  

Financial Information:

           

Total assets

    $ 36,476,441     $ 29,744,764       22.6 %    $ 35,087,698       4.0 % 

Total shareholders’ equity

    $ 5,124,737     $ 4,508,790       13.7 %    $ 5,054,344       1.4 % 

Total common equity

    $ 4,439,737     $ 3,973,790       11.7 %    $ 4,369,344       1.6 % 

Goodwill and intangible assets

    $ (1,444,158 )    $ (1,314,818 )      9.8 %    $ (1,449,919 )      (0.4 %) 

DTL on goodwill and intangible assets

    $ 58,731     $ 54,049       8.7 %    $ 56,775       3.4 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Tangible common equity

    $ 3,054,310     $ 2,713,021       12.6 %    $ 2,976,200       2.6 % 

Preferred equity

    $ 685,000     $ 535,000       28.0 %    $ 685,000       0.0 % 

Financial Metrics:

           

Book value per common share (2)

    $ 41.82     $ 37.89       10.4 %    $ 40.98       2.0 % 

Tangible book value per common share (2)

    $ 28.77     $ 25.87       11.2 %    $ 27.91       3.1 % 

Return on common equity (3)

      13.7 %      19.4 %        15.1 %   

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

      14.8 %      20.6 %        16.2 %   

Return on tangible common equity (4)

      20.0 %      28.6 %        22.3 %   

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

      21.6 %      30.5 %        23.8 %   

Pre-tax margin on net revenues

      19.7 %      22.9 %        20.3 %   

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

      21.2 %      24.3 %        21.7 %   

Effective tax rate

      26.4 %      25.0 %        23.6 %   

Non-GAAP effective tax rate (1)

      26.4 %      25.0 %        23.6 %   

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2022 Earnings Release    Page 6 of 17

LOGO

 

Regulatory Capital

 

 

(Unaudited, 000s)    6/30/2022     6/30/2021     % Change     3/31/2022     % Change  

SF Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 3,151,794     $ 2,672,682       17.9 %    $ 3,029,778       4.0 % 

Tier 1 capital

    $ 3,836,794     $ 3,207,682       19.6 %    $ 3,714,778       3.3 % 

Risk-weighted assets

    $ 21,281,241     $ 16,952,415       25.5 %    $ 19,958,908       6.6 % 

Common equity tier 1 capital ratio

      14.8 %      15.8 %        15.2 %   

Tier 1 risk based capital ratio

      18.0 %      18.9 %        18.6 %   

Tier 1 leverage capital ratio

      11.2 %      11.7 %        11.3 %   

Stifel Bank & Trust Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 1,482,526     $ 1,069,763       38.6 %    $ 1,371,166       8.1 % 

Tier 1 capital

    $ 1,482,526     $ 1,069,763       38.6 %    $ 1,371,166       8.1 % 

Risk-weighted assets

    $ 13,783,486     $ 9,958,105       38.4 %    $ 12,555,438       9.8 % 

Common equity tier 1 capital ratio

      10.8 %      10.7 %        10.9 %   

Tier 1 risk based capital ratio

      10.8 %      10.7 %        10.9 %   

Tier 1 leverage capital ratio

      7.1 %      7.0 %        7.1 %   

Stifel Bank Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 346,827     $ 326,622       6.2 %    $ 340,014       2.0 % 

Tier 1 capital

    $ 346,827     $ 326,622       6.2 %    $ 340,014       2.0 % 

Risk-weighted assets

    $ 2,970,926     $ 1,593,962       86.4 %    $ 2,668,521       11.3 % 

Common equity tier 1 capital ratio

      11.7 %      20.5 %        12.7 %   

Tier 1 risk based capital ratio

      11.7 %      20.5 %        12.7 %   

Tier 1 leverage capital ratio

      7.2 %      7.1 %        7.1 %   

Stifel Net Capital (5):

           

Net capital

    $ 627,100     $ 614,500       2.1 %    $ 584,600       7.3 % 

Excess net capital

    $ 596,500     $ 584,000       2.1 %    $ 554,200       7.6 % 

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2022 Earnings Release    Page 7 of 17

LOGO

 

Global Wealth Management - Summary Results of Operations

 

 

     Three Months Ended     Six Months Ended  
(Unaudited, 000s)    6/30/2022     6/30/2021     % Change     3/31/2022     % Change     6/30/2022     6/30/2021     % Change  

Revenues:

                 

Commissions

    $ 122,004     $ 139,653       (12.6 %)    $ 130,776       (6.7 %)    $ 252,780     $ 287,158       (12.0 %) 

Principal transactions

      48,466       55,209       (12.2 %)      45,544       6.4 %      94,010       108,808       (13.6 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactional revenues

      170,470       194,862       (12.5 %)      176,320       (3.3 %)      346,790       395,966       (12.4 %) 

Asset management

      331,243       295,847       12.0 %      341,613       (3.0 %)      672,856       573,956       17.2 % 

Net interest

      195,828       124,686       57.1 %      156,760       24.9 %      352,588       242,461       45.4 % 

Investment banking (6)

      5,056       11,898       (57.5 %)      5,147       (1.8 %)      10,203       25,447       (59.9 %) 

Other income

      (4,617 )      10,274       (144.9 %)      1,885       (344.9 %)      (2,732 )      31,232       (108.7 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

      697,980       637,567       9.5 %      681,725       2.4 %      1,379,705       1,269,062       8.7 % 

Non-interest expenses:

                 

Compensation and benefits

      349,368       341,367       2.3 %      364,993       (4.3 %)      714,361       678,088       5.3 % 

Non-compensation operating expenses

      103,460       68,895       50.2 %      91,319       13.3 %      194,779       140,438       38.7 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-interest expenses

      452,828       410,262       10.4 %      456,312       (0.8 %)      909,140       818,526       11.1 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 245,152     $ 227,305       7.9 %    $ 225,413       8.8 %    $ 470,565     $ 450,536       4.4 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

As a percentage of net revenues:

                 

Compensation and benefits

      50.1 %      53.5 %      (340 )      53.5 %      (340 )      51.8 %      53.4 %      (160 ) 

Non-compensation operating expenses

      14.8 %      10.8 %      400       13.4 %      140       14.1 %      11.1 %      300  

Income before income taxes

      35.1 %      35.7 %      (60 )      33.1 %      200       34.1 %      35.5 %      (140 ) 

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2022 Earnings Release    Page 8 of 17

LOGO

 

Global Wealth Management - Statistical Information

 

 

     As of and for the Three Months Ended  
(Unaudited, 000s, except financial advisors and locations)    6/30/2022     6/30/2021     % Change     3/31/2022     % Change  

Financial advisors

      2,230       2,190       1.8 %      2,229       0.0 % 

Independent contractors

      100       92       8.7 %      92       8.7 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total financial advisors

      2,330       2,282       2.1 %      2,321       0.4 % 

Locations (7)

      397       391       1.5 %      395       0.5 % 

Total client assets

    $ 377,591,000     $ 402,442,000       (6.2 %)    $ 421,414,000       (10.4 %) 

Fee-based client assets

    $ 141,223,000     $ 148,838,000       (5.1 %)    $ 157,910,000       (10.6 %) 

Transactional assets

    $ 236,368,000     $ 253,604,000       (6.8 %)    $ 263,504,000       (10.3 %) 

Client money market and insured product (8)

    $ 26,759,000     $ 23,982,000       11.6 %    $ 28,504,000       (6.1 %) 

Secured client lending (9)

    $ 4,044,684     $ 3,451,625       17.2 %    $ 4,081,980       (0.9 %) 

Asset Management Revenue ($ in 000s):

           

Private Client Group (10)

    $ 282,207     $ 249,273       13.2 %    $ 293,301       (3.8 %) 

Asset Management

      32,511       32,202       1.0 %      34,635       (6.1 %) 

Third-party Bank Sweep Program

      3,841       1,516       153.4 %      942       307.7 % 

Other (11)

      12,705       12,878       (1.3 %)      12,758       (0.4 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total asset management revenues

    $ 331,264     $ 295,869       12.0 %    $ 341,636       (3.0 %) 

Fee-based Assets ($ in millions):

           

Private Client Group (10)

    $ 123,832       129,565       (4.4 %)    $ 138,219       (10.4 %) 

Asset Management

      31,288       33,289       (6.0 %)      34,716       (9.9 %) 

Elimination (12)

      (13,897 )      (14,015 )      (0.8 %)      (15,025 )      (7.5 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fee-based assets

    $ 141,223     $ 148,839       (5.1 %)    $ 157,910       (10.6 %) 

Third-party Bank Sweep Program

    $ 1,666     $ 5,795       (71.3 %)    $ 5,492       (69.7 %) 

ROA (bps) (13):

           

Private Client Group (10)

      81.7       83.2         82.9    

Asset Management

      41.6       38.7         39.9    

Third-party Bank Sweep Program

      41.3       9.9         6.2    

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2022 Earnings Release    Page 9 of 17

LOGO

 

Institutional Group - Summary Results of Operations

 

 

     Three Months Ended     Six Months Ended  
(Unaudited, 000s)    6/30/2022     6/30/2021     % Change     3/31/2022     % Change     6/30/2022     6/30/2021     % Change  

Revenues:

                 

Commissions

    $ 64,677     $ 55,926       15.6 %    $ 65,133       (0.7 %)    $ 129,810     $ 122,035       6.4 % 

Principal transactions

      77,137       97,388       (20.8 %)      113,726       (32.2 %)      190,863       208,795       (8.6 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactional revenues

      141,814       153,314       (7.5 %)      178,859       (20.7 %)      320,673       330,830       (3.1 %) 

Capital raising

      66,463       157,880       (57.9 %)      68,303       (2.7 %)      134,766       353,137       (61.8 %) 

Advisory

      199,556       206,665       (3.4 %)      181,396       10.0 %      380,952       337,147       13.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment banking

      266,019       364,545       (27.0 %)      249,699       6.5 %      515,718       690,284       (25.3 %) 

Other income (14)

      3,531       2,952       19.6 %      2,805       25.9 %      6,336       5,778       9.7 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

      411,364       520,811       (21.0 %)      431,363       (4.6 %)      842,727       1,026,892       (17.9 %) 

Non-interest expenses:

                 

Compensation and benefits

      244,711       299,469       (18.3 %)      252,347       (3.0 %)      497,058       601,093       (17.3 %) 

Non-compensation operating expenses

      93,661       79,848       17.3 %      82,388       13.7 %      176,049       167,117       5.3 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-interest expenses

      338,372       379,317       (10.8 %)      334,735       1.1 %      673,107       768,210       (12.4 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 72,992     $ 141,494       (48.4 %)    $ 96,628       (24.5 %)    $ 169,620     $ 258,682       (34.4 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

As a percentage of net revenues:

                 

Compensation and benefits

      59.5 %      57.5 %      200       58.5 %      100       59.0 %      58.5 %      50  

Non-compensation operating expenses

      22.8 %      15.3 %      750       19.1 %      370       20.9 %      16.3 %      460  

Income before income taxes

      17.7 %      27.2 %      (950 )      22.4 %      (470 )      20.1 %      25.2 %      (510 ) 

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2022 Earnings Release    Page 10 of 17

LOGO

 

Stifel Bancorp - Financial Information and Credit Metrics

 

 

(Unaudited, 000s)    6/30/2022     6/30/2021     % Change     3/31/2022     % Change  

Stifel Bancorp Financial Information:

           

Total assets

    $ 27,957,299     $ 21,250,293       31.6 %    $ 26,115,139       7.1 % 

Total shareholder’s equity

    $ 1,840,273     $ 1,563,380       17.7 %    $ 1,782,875       3.2 % 

Total loans, net (includes loans held for sale)

    $ 19,271,862     $ 13,164,958       46.4 %    $ 17,908,268       7.6 % 

Commercial and industrial

      8,347,410       4,950,516       68.6 %      7,656,507       9.0 % 

Residential real estate

      6,607,825       4,567,467       44.7 %      6,008,507       10.0 % 

Securities-based loans

      2,993,552       2,331,737       28.4 %      2,954,212       1.3 % 

Commercial real estate

      629,459       370,517       69.9 %      499,825       25.9 % 

Other

      580,374       678,570       (14.5 %)      642,497       (9.7 %) 

Loans held for sale

      288,676       394,017       (26.7 %)      315,427       (8.5 %) 

Investment securities

    $ 7,761,115     $ 7,264,849       6.8 %    $ 7,240,149       7.2 % 

Available-for-sale securities, at fair value

      1,879,904       2,279,678       (17.5 %)      1,926,144       (2.4 %) 

Held-to-maturity securities, at amortized cost

      5,881,211       4,985,171       18.0 %      5,314,005       10.7 % 

Total deposits

    $ 26,009,300     $ 19,608,800       32.6 %    $ 24,195,626       7.5 % 

Demand deposits (interest-bearing)

      25,670,438       18,908,576       35.8 %      23,553,384       9.0 % 

Demand deposits (non interest-bearing)

      319,682       643,890       (50.4 %)      618,435       (48.3 %) 

Certificates of deposit

      19,180       56,334       (66.0 %)      23,807       (19.4 %) 

Credit Metrics:

           

Allowance for credit losses

    $ 139,553     $ 115,190       21.2 %    $ 126,802       10.1 % 

Allowance as a percentage of retained loans

      0.73 %      0.90 %        0.72 %   

Net charge-offs as a percentage of average loans

      0.00 %      0.03 %        0.00 %   

Total nonperforming assets

    $ 29,430     $ 9,808       200.1 %    $ 17,124       71.9 % 

Nonperforming assets as a percentage of total assets

      0.11 %      0.05 %        0.07 %   

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2022 Earnings Release    Page 11 of 17

LOGO

 

Loans and Lending Commitments - Allowance for Credit Losses

 

 

     June 30, 2022               
     Loans and Lending                      
(Unaudited, 000s)    Commitments      ACL      ACL
%		     Q2 Provision  

Commercial and industrial

    $ 8,347,410      $ 67,352        0.8 %    $ 12,770  

Residential real estate

      6,607,825        22,615        0.3 %      (10,312 ) 

Securities-based loans

      2,993,552        3,976        0.1 %      36  

Commercial real estate

      629,459        6,483        1.0 %      2,803  

Other

      580,374        7,056        1.2 %      (1,979 ) 
  

 

 

     

 

 

       

 

 

  

Loans held for investment, gross

      19,158,620        107,482        0.6 %      3,318  

Loans held for sale

      288,676          
  

 

 

          

Total loans, gross

      19,447,296          

Lending commitments

      4,617,000        32,071        0.7 %      9,467  
  

 

 

     

 

 

       

 

 

  

Loans and lending commitments

    $ 24,064,296      $ 139,553        $ 12,785  
  

 

 

     

 

 

       

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2022 Earnings Release    Page 12 of 17

LOGO

 

Consolidated Net Interest Income

 

 

     Three Months Ended  
     June 30, 2022     June 30, 2021     March 31, 2022  
(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

    $ 1,106.4      $ 2.9        1.05 %    $ 1,249.2      $ 0.8        0.26 %    $ 1,340.3      $ 1.1       0.32 % 

Financial instruments owned

      1,171.1        4.1        1.39 %      979.7        2.5        1.04 %      1,176.0        5.4       1.84 % 

Margin balances

      1,105.7        8.7        3.16 %      1,059.3        6.3        2.37 %      1,089.6        6.9       2.54 % 

Investments:

                        

Asset-backed securities

      5,728.1        36.3        2.53 %      5,132.9        22.8        1.77 %      5,598.6        24.9       1.78 % 

Mortgage-backed securities

      991.3        4.7        1.89 %      1,070.5        4.1        1.53 %      1,007.3        4.4       1.75 % 

Corporate fixed income securities

      756.2        5.0        2.68 %      709.7        4.6        2.61 %      773.0        5.0       2.57 % 

Other

      4.8        —          1.72 %      5.8        —          2.11 %      5.3        —         1.84 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total investments

      7,480.4        46.0        2.46 %      6,918.9        31.5        1.82 %      7,384.2        34.3       1.86 % 

Loans:

                        

Commercial and industrial

      8,175.3        77.9        3.81 %      5,055.4        43.3        3.43 %      7,556.0        62.0       3.28 % 

Residential real estate

      6,301.8        39.5        2.51 %      4,296.5        28.5        2.66 %      5,684.6        35.5       2.50 % 

Securities-based loans

      2,972.2        20.7        2.79 %      2,214.1        10.8        1.94 %      2,910.7        14.4       1.98 % 

Commercial real estate

      592.3        5.0        3.35 %      417.7        3.0        2.89 %      462.9        3.0       2.63 % 

Loans held for sale

      293.3        1.9        2.55 %      286.7        1.6        2.20 %      221.8        1.3       2.29 % 

Other

      562.7        5.4        3.85 %      688.6        5.2        3.03 %      642.4        5.1       3.16 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total loans

      18,897.6        150.4        3.18 %      12,959.0        92.4        2.85 %      17,478.4        121.3       2.78 % 

Other interest-bearing assets

      1,149.5        0.7        0.24 %      698.9        0.1        0.01 %      760.3        (3.6 )      (1.88 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total interest-bearing assets/ interest income

      30,910.7        212.8        2.75 %      23,865.0        133.6        2.24 %      29,228.8        165.4       2.26 % 

Interest-bearing liabilities:

                        

Senior notes

      1,113.8        11.3        4.05 %      1,112.7        12.0        4.30 %      1,113.6        11.4       4.10 % 

Deposits

      24,231.9        3.6        0.06 %      18,637.1        1.2        0.03 %      23,129.9        0.9       0.02 % 

Federal Home Loan advances

      368.5        0.8        0.86 %      60.3        —          0.27 %      40.4        —         0.30 % 

Other interest-bearing liabilities

      1,664.3        1.6        0.40 %      1,441.9        1.0        0.26 %      1,559.3        (2.8 )      (0.75 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total interest-bearing liabilities/ interest expense

    $ 27,378.5        17.3        0.25 %    $ 21,252.0        14.2        0.27 %    $ 25,843.2        9.5       0.15 % 
     

 

 

     

 

 

       

 

 

     

 

 

       

 

 

    

 

 

  

Net interest income/margin

       $ 195.5        2.53 %       $ 119.4        2.00 %       $ 155.9       2.13 % 
     

 

 

     

 

 

       

 

 

     

 

 

       

 

 

    

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2022 Earnings Release    Page 13 of 17

LOGO

 

Stifel Bancorp Net Interest Income

 

 

    Three Months Ended  
    June 30, 2022     June 30, 2021     March 31, 2022  
(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

   $ 453.1     $ 1.0       0.87 %    $ 611.9     $ 0.2       0.14 %    $ 549.5     $ 0.3       0.22 % 

Investments

     7,480.4       46.0       2.46 %      6,918.9       31.5       1.82 %      7,384.2       34.3       1.86 % 

Loans

     18,897.6       150.4       3.18 %      12,959.0       92.4       2.85 %      17,478.4       121.3       2.78 % 

Other interest-bearing assets

     68.1       0.8       4.67 %      44.5       0.4       3.21 %      50.1       0.4       2.87 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing assets/ interest income

   $ 26,899.2     $ 198.2       2.95 %    $ 20,534.3     $ 124.5       2.42 %    $ 25,462.2     $ 156.3       2.45 % 

Interest-bearing liabilities:

                  

Deposits

   $ 24,231.9     $ 3.6       0.06 %    $ 18,637.1     $ 1.2       0.03 %    $ 23,129.9     $ 0.9       0.02 % 

Federal Home Loan advances

     368.5       0.8       0.86 %      60.3       —         0.27 %      40.4       —         0.30 % 

Other interest-bearing liabilities

     1.0       —         15.57 %      1.3       0.1       7.44 %      1.1       0.1       13.24 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing liabilities/ interest expense

   $ 24,601.4       4.4       0.07 %    $ 18,698.7       1.3       0.03 %    $ 23,171.4       1.0       0.02 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

Net interest income/margin

     $ 193.8       2.88 %      $ 123.2       2.40 %      $ 155.3       2.44 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2022 Earnings Release    Page 14 of 17

LOGO

 

GAAP to Core Reconciliation

 

 

    Three Months Ended     Six Months Ended  
(Unaudited, 000s)   6/30/2022     6/30/2021     Change     3/31/2022     Change     6/30/2022     6/30/2021     Change  

GAAP net revenues

   $ 1,108,126     $ 1,153,136       $ 1,116,527       $ 2,224,653     $ 2,287,925    

Non-GAAP adjustments

     1       (38 )        60         61       153    
 

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP net revenues

     1,108,127       1,153,098         1,116,587         2,224,714       2,288,078    

GAAP compensation and benefits expense

     652,709       692,054         673,691         1,326,400       1,389,968    

Merger-related (15)

     (9,174 )      (6,119 )        (9,311 )        (18,485 )      (12,293 )   
 

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP compensation and benefits expense

     643,535       685,935         664,380         1,307,915       1,377,675    

GAAP non-compensation operating expenses

     236,876       197,057         215,727         452,603       406,040    

Merger-related (15)

     (7,616 )      (10,287 )        (5,482 )        (13,098 )      (19,351 )   
 

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP non-compensation operating expenses

     229,260       186,770         210,245         439,505       386,689    
 

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Total merger-related adjustments

     (16,791 )      (16,368 )        (14,853 )        (31,644 )      (31,797 )   
 

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

GAAP provision for income taxes

     57,725       65,948         53,560         111,285       120,825    

Merger-related and other (15)

     4,433       4,089         3,495         7,928       7,819    
 

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP provision for income taxes

     62,158       70,037         57,055         119,213       128,644    

Financial ratios:

                

Compensation and benefits

     58.1 %      59.5 %      (140 )      59.5 %      (140 )      58.8 %      60.2 %      (140 ) 

Non-compensation operating expenses

     20.7 %      16.2 %      450       18.8 %      190       19.7 %      16.9 %      280  

Income before income taxes

     21.2 %      24.3 %      (310 )      21.7 %      (50 )      21.5 %      22.9 %      (140 ) 

Effective tax rate

     26.4 %      25.0 %      140       23.6 %      280       25.0 %      24.6 %      40  

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2022 Earnings Release    Page 15 of 17

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 $57.4 million, $53.1 million, and $55.5 million, as of June 30, 2022 and 2021, and March 31, 2022, respectively.

(5)

Regulatory capital amounts and ratios are estimates as of the date of the Company’s earnings release, July 27, 2022.

(6)

Includes capital raising and advisory fee revenues.

(7)

Represents Global Wealth Management locations. Historical periods have been restated to conform to the current period presentation.

(8)

Includes Stifel Smart Rate Program balances. Historical periods have been restated to conform to the current period presentation.

(9)

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

(10)

Includes Private Client Group and Trust Business.

(11)

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

(12)

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

(13)

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.

(14)

Includes net interest, asset management, and other income.

(15)

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

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2022 Earnings Release    Page 16 of 17

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, 2021. 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 27, 2022.

 

Stifel Financial Corp. Quarterly Financial Supplement | Second Quarter 2022 Earnings Release    Page 17 of 17