EX-99.2 3 d390565dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

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Third 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  |  Third Quarter 2022 Earnings Release   Page 1 of 17

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Consolidated Financial Highlights

 

 

    Three Months Ended     Nine Months Ended  
(Unaudited, 000s, except per share information)   9/30/2022     9/30/2021     % Change     6/30/2022     % Change     9/30/2022     9/30/2021     % Change  

Net revenues

   $ 1,045,139     $ 1,144,938       (8.7 %)    $ 1,108,126       (5.7 %)    $ 3,269,792     $ 3,432,863       (4.8 %) 

Net income

   $ 151,169     $ 192,376       (21.4 %)    $ 160,816       (6.0 %)    $ 485,534     $ 563,468       (13.8 %) 

Preferred dividends

     9,320       9,689       (3.8 %)      9,321       (0.0 %)      27,961       26,267       6.4 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income available to common shareholders

   $ 141,849     $ 182,687       (22.4 %)    $ 151,495       (6.4 %)    $ 457,573     $ 537,201       (14.8 %) 

Earnings per diluted common share

   $ 1.29     $ 1.62       (20.4 %)    $ 1.37       (5.8 %)    $ 4.13     $ 4.76       (13.2 %) 

Earnings per diluted common share available to common shareholders

   $ 1.21     $ 1.54       (21.4 %)    $ 1.29       (6.2 %)    $ 3.89     $ 4.54       (14.3 %) 

Non-GAAP financial summary (1):

                

Net revenues

   $ 1,045,133     $ 1,144,938       (8.7 %)    $ 1,108,127       (5.7 %)    $ 3,269,847     $ 3,433,016       (4.8 %) 

Net income

   $ 160,076     $ 205,342       (22.0 %)    $ 173,174       (7.6 %)    $ 518,157     $ 600,412       (13.7 %) 

Preferred dividends

     9,320       9,689       (3.8 %)      9,321       (0.0 %)      27,961       26,267       6.4 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income available to common shareholders

   $ 150,756       195,653       (22.9 %)      163,853       (8.0 %)      490,196       574,145       (14.6 %) 

Earnings per diluted common share

   $ 1.37     $ 1.73       (20.8 %)    $ 1.48       (7.4 %)    $ 4.41     $ 5.07       (13.0 %) 

Earnings per diluted common share available to common shareholders

   $ 1.29     $ 1.65       (21.8 %)    $ 1.40       (7.9 %)    $ 4.17     $ 4.85       (14.0 %) 

Weighted average number of common shares outstanding:

 

Basic

     108,767       107,379       1.3 %      109,083       (0.3 %)      109,017       107,655       1.3 % 

Diluted

     117,218       118,475       (1.1 %)      117,400       (0.2 %)      117,649       118,355       (0.6 %) 

Period end common shares outstanding

     106,225       104,263       1.9 %      106,166       0.1 %)      106,225       104,263       1.9 % 

Cash dividends declared per common share

   $ 0.30     $ 0.15       100.0 %    $ 0.30       0.0 %    $ 0.90     $ 0.45       100.0 % 

 

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

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GAAP Consolidated Results of Operations

 

 

    Three Months Ended     Nine Months Ended  
(Unaudited, 000s, except per share information)   9/30/2022     9/30/2021     % Change     6/30/2022     % Change     9/30/2022     9/30/2021     % Change  

Revenues:

                

Commissions

   $ 159,054     $ 189,239       (16.0 %)    $ 186,681       (14.8 %)    $ 541,644     $ 598,432       (9.5 %) 

Principal transactions

     118,379       118,977       (0.5 %)      125,603       (5.8 %)      403,252       436,580       (7.6 %) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactional revenues

     277,433       308,216       (10.0 %)      312,284       (11.2 %)      944,896       1,035,012       (8.7 %) 

Capital raising

     55,122       164,061       (66.4 %)      71,519       (22.9 %)      200,091       542,645       (63.1 %) 

Advisory

     166,736       208,218       (19.9 %)      199,556       (16.4 %)      547,688       545,365       0.4 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment banking

     221,858       372,279       (40.4 %)      271,075       (18.2 %)      747,779       1,088,010       (31.3 %) 

Asset management

     300,557       313,862       (4.2 %)      331,264       (9.3 %)      973,457       887,878       9.6 % 

Other income

     852       18,760       (95.5 %)      (1,917 )      (144.4 %)      7,823       57,629       (86.4 %) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating revenues

     800,700       1,013,117       (21.0 %)      912,706       (12.3 %)      2,673,955       3,068,529       (12.9 %) 

Interest revenue

     304,195       141,844       114.5 %      212,754       43.0 %      682,384       402,975       69.3 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

     1,104,895       1,154,961       (4.3 %)      1,125,460       (1.8 %)      3,356,339       3,471,504       (3.3 %) 

Interest expense

     59,756       10,023       496.2 %      17,334       244.7 %      86,547       38,641       124.0 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

     1,045,139       1,144,938       (8.7 %)      1,108,126       (5.7 %)      3,269,792       3,432,863       (4.8 %) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Non-interest expenses:

                

Compensation and benefits

     611,870       672,385       (9.0 %)      652,709       (6.3 %)      1,938,270       2,062,353       (6.0 %) 

Occupancy and equipment rental

     77,230       72,160       7.0 %      78,251       (1.3 %)      232,507       215,163       8.1 % 

Communication and office supplies

     43,825       40,432       8.4 %      43,645       0.4 %      129,926       123,565       5.1 % 

Commissions and floor brokerage

     13,576       14,744       (7.9 %      15,106       (10.1 %)      44,569       44,424       0.3 % 

Provision for credit losses

     6,453       (660 )      nm       12,785       (49.5 %)      27,478       (15,564 )      (276.5 %) 

Other operating expenses

     86,416       89,375       (3.3 %)      87,089       (0.8 %)      245,623       254,503       (3.5 %) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-interest expenses

     839,370       888,436       (5.5 %)      889,585       (5.6 %)      2,618,373       2,684,444       (2.5 %) 

Income before income taxes

     205,769       256,502       (19.8 %)      218,541       (5.8 %)      651,419       748,419       (13.0 %) 

Provision for income taxes

     54,600       64,126       (14.9 %)      57,725       (5.4 %)      165,885       184,951       (10.3 %) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

     151,169       192,376       (21.4 %)      160,816       (6.0 %)      485,534       563,468       (13.8 %) 

Preferred dividends

     9,320       9,689       (3.8 %)      9,321       (0.0 %)      27,961       26,267       6.4 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income available to common shareholders

   $ 141,849     $ 182,687       (22.4 %)    $ 151,495       (6.4 %)    $ 457,573     $ 537,201       (14.8 %) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings per common share:

                

Basic

   $ 1.30     $ 1.70       (23.5 %)    $ 1.39       (6.5 %)    $ 4.20     $ 4.99       (15.8 %) 

Diluted

   $ 1.21     $ 1.54       (21.4 %)    $ 1.29       (6.2 %)    $ 3.89     $ 4.54       (14.3 %) 

Weighted average number of common shares outstanding:

                

Basic

     108,767       107,379       1.3 %      109,083       (0.3 %)      109,017       107,655       1.3 % 

Diluted

     117,218       118,475       (1.1 %)      117,400       (0.2 %)      117,649       118,355       (0.6 %) 

Cash dividends declared per common share

   $ 0.30     $ 0.15       100.0 %    $ 0.30       0.0 %    $ 0.90     $ 0.45       100.0 % 

 

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

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Non-GAAP Consolidated Results of Operations (1)

 

 

    Three Months Ended     Nine Months Ended  
(Unaudited, 000s, except per share information)   9/30/2022     9/30/2021     % Change     6/30/2022     % Change     9/30/2022     9/30/2021     % Change  

Revenues:

                

Commissions

   $ 159,054     $ 189,239       (16.0 %)    $ 186,681       (14.8 %)    $ 541,644     $ 598,432       (9.5 %) 

Principal transactions

     118,379       118,977       (0.5 %)      125,603       (5.8 %)      403,252       436,580       (7.6 %) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactional revenues

     277,433       308,216       (10.0 %)      312,284       (11.2 %)      944,896       1,035,012       (8.7 %) 

Capital raising

     55,122       164,061       (66.4 %)      71,519       (22.9 %)      200,091       542,645       (63.1 %) 

Advisory

     166,736       208,218       (19.9 %)      199,556       (16.4 %)      547,688       545,365       0.4 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment banking

     221,858       372,279       (40.4 %)      271,075       (18.2 %)      747,779       1,088,010       (31.3 %) 

Asset management

     300,557       313,862       (4.2 %)      331,264       (9.3 %)      973,457       887,878       9.6 % 

Other income

     852       18,760       (95.5 %)      (1,917 )      (144.4 %)      7,823       57,657       (86.4 %) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating revenues

     800,700       1,013,117       (21.0 %)      912,706       (12.3 %)      2,673,955       3,068,557       (12.9 %) 

Interest revenue

     304,195       141,844       114.5 %      212,754       43.0 %      682,384       402,975       69.3 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

     1,104,895       1,154,961       (4.3 %)      1,125,460       (1.8 %)      3,356,339       3,471,532       (3.3 %) 

Interest expense

     59,762       10,023       496.2 %      17,333       244.8 %      86,492       38,516       124.6 %) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

     1,045,133       1,144,938       (8.7 %)      1,108,127       (5.7 %)      3,269,847       3,433,016       (4.8 %) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Non-interest expenses:

                

Compensation and benefits

     605,811       666,605       (9.1 %)      643,535       (5.9 %)      1,913,726       2,044,280       (6.4 %) 

Occupancy and equipment rental

     77,142       72,129       7.0 %      77,884       (1.0 %)      232,035       215,068       7.9 % 

Communication and office supplies

     43,794       40,432       8.3 %      43,621       0.4 %      129,863       123,489       5.2 % 

Commissions and floor brokerage

     13,576       14,744       (7.9 %)      15,106       (10.1 %)      44,569       44,424       0.3 % 

Provision for credit losses

     6,453       (660 )      nm       12,785       (49.5 %)      27,478       (15,564 )      (276.5 %) 

Other operating expenses

     80,630       77,903       3.5 %      79,864       1.0 %      227,155       223,820       1.5 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-interest expenses

     827,406       871,153       (5.0 %)      872,795       (5.2 %)      2,574,826       2,635,517       (2.3 %) 

Income before income taxes

     217,727       273,785       (20.5 %)      235,332       (7.5 %)      695,021       797,499       (12.8 %) 

Provision for income taxes

     57,651       68,443       (15.8 %)      62,158       (7.3 %)      176,864       197,087       (10.3 %) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

     160,076       205,342       (22.0 %)      173,174       (7.6 %)      518,157       600,412       (13.7 %) 

Preferred dividends

     9,320       9,689       (3.8 %)      9,321       (0.0 %)      27,961       26,267       6.4 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income available to common shareholders

   $ 150,756     $ 195,653       (22.9 %)    $ 163,853       (8.0 %)    $ 490,196     $ 574,145       (14.6 %) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings per common share:

                

Basic

   $ 1.39     $ 1.82       (23.6 %)    $ 1.50       (7.3 %)    $ 4.50     $ 5.33       (15.6 %) 

Diluted

   $ 1.29     $ 1.65       (21.8 %)    $ 1.40       (7.9 %)    $ 4.17     $ 4.85       (14.0 %) 

Weighted average number of common shares outstanding:

                

Basic

     108,767       107,379       1.3 %      109,083       (0.3 %)      109,017       107,655       1.3 % 

Diluted

     117,218       118,475       (1.1 %)      117,400       (0.2 %)      117,649       118,355       (0.6 %) 

Cash dividends declared per common share

   $ 0.30     $ 0.15       100.0 %    $ 0.30       0.0 %    $ 0.90     $ 0.45       100.0 % 

 

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

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Consolidated Financial Summary

 

 

    Three Months Ended     Nine Months Ended  
(Unaudited, 000s)   9/30/2022     9/30/2021     % Change     6/30/2022     % Change     9/30/2022     9/30/2021     % Change  

Net revenues:

                

Global Wealth Management

   $ 701,820     $ 655,533       7.1 %    $ 697,980       0.6 %    $ 2,081,525     $ 1,924,595       8.2 % 

Institutional Group

     339,408       492,284       (31.1 %)      411,364       (17.5 %)      1,182,135       1,519,176       (22.2 %) 

Other

     3,911       (2,879 )      (235.8 %)      (1,218 )      (421.1 %)      6,132       (10,908 )      (156.2 %) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenues

   $ 1,045,139     $ 1,144,938       (8.7 %)    $ 1,108,126       (5.7 %)    $ 3,269,792     $ 3,432,863       (4.8 %) 

Operating expenses:

                

Global Wealth Management

   $ 421,885     $ 423,414       (0.4 %)    $ 452,828       (6.8 %)    $ 1,331,025     $ 1,241,940       7.2 % 

Institutional Group

     299,408       367,192       (18.5 %)      338,372       (11.5 %)      972,515       1,135,402       (14.3 %) 

Other

     118,077       97,830       20.7 %      98,385       20.0 %      314,833       307,102       2.5 %) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

   $ 839,370     $ 888,436       (5.5 %)    $ 889,585       (5.6 %)    $ 2,618,373     $ 2,684,444       (2.5 %) 

Operating contribution:

                

Global Wealth Management

   $ 279,935     $ 232,119       20.6 %    $ 245,152       14.2 %    $ 750,500     $ 682,655       9.9 % 

Institutional Group

     40,000       125,092       (68.0 %)      72,992       (45.2 %)      209,620       383,774       (45.4 %) 

Other

     (114,166 )      (100,709 )      13.4 %      (99,603 )      14.6 %      (308,701 )      (318,010 )      (2.9 %) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

   $ 205,769     $ 256,502       (19.8 %)    $ 218,541       (5.8 %)    $ 651,419     $ 748,419       (13.0 %) 

Financial ratios:

                

Compensation and benefits

     58.5 %      58.7 %      (20 )      58.9 %      (40 )      59.3 %      60.1 %      (80 ) 

Non-compensation operating expenses

     21.8 %      18.9 %      290       21.4 %      40       20.8 %      18.1 %      270  

Income before income taxes

     19.7 %      22.4 %      (270 )      19.7 %      0       19.9 %      21.8 %      (190 ) 

Effective tax rate

     26.5 %      25.0 %      150       26.4 %      10       25.5 %      24.7 %      80  

 

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Consolidated Financial Information and Metrics

 

 

     As of and for the Three Months Ended  
(Unaudited, 000s, except per share data)    9/30/2022     9/30/2021     % Change     6/30/2022     % Change  

Financial Information:

           

Total assets

    $ 37,612,063     $ 30,820,334       22.0 %    $ 36,476,441       3.1 % 

Total shareholders’ equity

    $ 5,227,350     $ 4,791,324       9.1 %    $ 5,124,737       2.0 % 

Total common equity

    $ 4,542,350     $ 4,106,324       10.6 %    $ 4,439,737       2.3 % 

Goodwill and intangible assets

    $ (1,454,532 )    $ (1,310,038 )      11.0 %    $ (1,444,158 )      0.7 % 

DTL on goodwill and intangible assets

    $ 60,034     $ 55,430       8.3 %    $ 58,731       2.2 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Tangible common equity

    $ 3,147,852     $ 2,851,716       10.4 %    $ 3,054,310       3.1 % 

Preferred equity

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

Financial Metrics:

           

Book value per common share (2)

    $ 42.76     $ 39.38       8.6 %    $ 41.82       2.2 % 

Tangible book value per common share (2)

    $ 29.63     $ 27.35       8.3 %    $ 28.77       3.0 % 

Return on common equity (3)

      12.5 %      17.9 %        13.7 %   

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

      13.3 %      19.2 %        14.8 %   

Return on tangible common equity (4)

      18.0 %      25.9 %        20.0 %   

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

      19.2 %      27.7 %        21.6 %   

Pre-tax margin on net revenues

      19.7 %      22.4 %        19.7 %   

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

      20.8 %      23.9 %        21.2 %   

Effective tax rate

      26.5 %      25.0 %        26.4 %   

Non-GAAP effective tax rate (1)

      26.5 %      25.0 %        26.4 %   

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Third Quarter 2022 Earnings Release   Page 6 of 16

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Regulatory Capital

 

 

     Three Months Ended  
(Unaudited, 000s)    9/30/2022     9/30/2021     % Change     6/30/2022     % Change  

SF Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 3,279,013     $ 2,816,734       16.4 %    $ 3,151,794       4.0 % 

Tier 1 capital

    $ 3,964,013     $ 3,501,734       13.2 %    $ 3,836,794       3.3 % 

Risk-weighted assets

    $ 23,300,119     $ 16,993,177       37.1 %    $ 21,281,241       9.5 % 

Common equity tier 1 capital ratio

      14.1 %      16.6 %        14.8 %   

Tier 1 risk based capital ratio

      17.0 %      20.6 %        18.0 %   

Tier 1 leverage capital ratio

      11.1 %      12.0 %        11.2 %   

Stifel Bank & Trust Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 1,655,760     $ 1,145,805       44.5 %    $ 1,482,526       11.7 % 

Tier 1 capital

    $ 1,655,760     $ 1,145,805       44.5 %    $ 1,482,526       11.7 % 

Risk-weighted assets

    $ 15,406,324     $ 10,727,146       43.6 %    $ 13,783,486       11.8 % 

Common equity tier 1 capital ratio

      10.8 %      10.7 %        10.8 %   

Tier 1 risk based capital ratio

      10.8 %      10.7 %        10.8 %   

Tier 1 leverage capital ratio

      7.3 %      7.0 %        7.1 %   

Stifel Bank Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 377,572     $ 309,150       22.1 %    $ 346,827       8.9 % 

Tier 1 capital

    $ 377,572     $ 309,150       22.1 %    $ 346,827       8.9 % 

Risk-weighted assets

    $ 3,591,228     $ 1,480,711       142.5 %    $ 2,970,926       20.9 % 

Common equity tier 1 capital ratio

      10.5 %      20.9 %        11.7 %   

Tier 1 risk based capital ratio

      10.5 %      20.9 %        11.7 %   

Tier 1 leverage capital ratio

      7.3 %      7.1 %        7.2 %   

Stifel Net Capital (5):

           

Net capital

    $ 643,000     $ 654,900       (1.8 %)    $ 627,100       2.5 % 

Excess net capital

    $ 614,000     $ 628,600       (2.3 %)    $ 596,500       2.9 % 

 

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

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Global Wealth Management - Summary Results of Operations

 

 

     Three Months Ended     Nine Months Ended  
(Unaudited, 000s)    9/30/2022     9/30/2021     % Change     6/30/2022     % Change     9/30/2022     9/30/2021     % Change  

Revenues:

                 

Commissions

    $ 108,214     $ 133,998       (19.2 %)    $ 122,004       (11.3 %)    $ 360,994     $ 421,156       (14.3 %) 

Principal transactions

      48,351       50,074       (3.4 %)      48,466       (0.2 %)      142,361       158,882       (10.4 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactional revenues

      156,565       184,072       (14.9 %)      170,470       (8.2 %)      503,355       580,038       (13.2 %) 

Asset management

      300,540       313,838       (4.2 %)      331,243       (9.3 %)      973,396       887,794       9.6 % 

Net interest

      242,194       130,341       85.8 %      195,828       23.7 %      594,782       372,802       59.5 % 

Investment banking (6)

      4,498       11,580       (61.2 %)      5,056       (11.0 %)      14,701       37,027       (60.3 %) 

Other income

      (1,977 )      15,702       (112.6 %)      (4,617       (57.2 %)      (4,709 )      46,934       (110.0 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

      701,820       655,533       7.1 %      697,980       0.6 %      2,081,525       1,924,595       8.2 % 

Non-interest expenses:

                 

Compensation and benefits

      326,116       342,792       (4.9 %)      349,368       (6.7 %)      1,040,477       1,020,880       1.9 % 

Non-compensation operating expenses

      95,769       80,622       18.8 %      103,460       (7,4 %)      290,548       221,060       31.4 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-interest expenses

      421,885       423,414       (0.4 %)      452,828       (6.8 %)      1,331,025       1,241,940       7.2 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 279,935     $ 232,119       20.6 %    $ 245,152       14.2 %    $ 750,500     $ 682,655       9.9 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

As a percentage of net revenues:

                 

Compensation and benefits

      46.5 %      52.3 %      (580 )      50.1 %      (360 )      50.0 %      53.0 %      (300 ) 

Non-compensation operating expenses

      13.6 %      12.3 %      130       14.8 %      (120 )      13.9 %      11.5 %      240  

Income before income taxes

      39.9 %      35.4 %      450       35.1 %      480       36.1 %      35.5 %      (60 ) 

 

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

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Global Wealth Management - Statistical Information

 

 

     As of and for the Three Months Ended  
(Unaudited, 000s, except financial advisors and locations)    9/30/2022     9/30/2021     % Change     6/30/2022     % Change  

Financial advisors

      2,235       2,212       1.0 %%      2,230       0.2 % 

Independent contractors

      102       90       13.3 %%      100       2.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total financial advisors

      2,337       2,302       1.5 %%      2,330       0.3 % 

Locations (7)

      395       391       1.0 %      397       (0.5 %) 

Total client assets

    $ 364,824,000     $ 406,959,000       (10.4 %)    $ 377,591,000       (3.4 %) 

Fee-based client assets

    $ 135,521,000     $ 150,472,000       (9.9 %)    $ 141,223,000       (4.0 %) 

Transactional assets

    $ 229,303,000     $ 256,487,000       (10.6 %)    $ 236,368,000       (3.0 %) 

Client money market and insured product (8)

    $ 26,082,000     $ 24,974,000       4.4 %    $ 26,759,000       (2.5 %) 

Secured client lending (9)

    $ 3,841,430     $ 3,588,799       7.0 %    $ 4,044,684       (5.0 %) 

Asset Management Revenue ($ in 000s):

           

Private Client Group (10)

    $ 252,487     $ 267,300       (5.5 %    $ 282,207       (10.5 %) 

Asset Management

      30,648       33,145       (7.5 %      32,511       (5.7 %) 

Third-party Bank Sweep Program

      3,851       791       386.9 %      3,841       0.3 % 

Other (11)

      13,571       12,626       7.5 %)      12,705       6.8 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total asset management revenues

    $ 300,557     $ 313,862       (4.2 %    $ 331,264       (9.3 %) 

Fee-based Assets ($ in millions):

           

Private Client Group (10)

    $ 118,850       130,931       (9.2 %)    $ 123,832       (4.0 %) 

Asset Management

      30,095       33,655       (10.6 %)      31,288       (3.8 %) 

Elimination (12)

      (13,424 )      (14,114 )      (4.9 %)      (13,897 )      (3.4 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fee-based assets

    $ 135,521     $ 150,472       (9.9 %)    $ 141,223       (4.0 %) 

Third-party Bank Sweep Program

    $ 1,114     $ 6,051       (81.6 %)    $ 1,666       (33.1 %) 

ROA (bps) (13):

           

Private Client Group (10)

      81.6       82.5         81.7    

Asset Management

      40.7       39.4         41.6    

Third-party Bank Sweep Program

      104.3       5.0         41.3    

 

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

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Institutional Group - Summary Results of Operations

 

 

     Three Months Ended     Nine Months Ended  
(Unaudited, 000s)    9/30/2022     9/30/2021     % Change     6/30/2022     % Change     9/30/2022     9/30/2021     % Change  

Revenues:

                 

Commissions

    $ 50,840     $ 55,241       (8.0 %    $ 64,677       (21.4 %)    $ 180,650     $ 177,276       1.9 % 

Principal transactions

      70,027       68,904       1.6 %      77,137       (9.2 %)      260,890       277,699       (6.1 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactional revenues

      120,867       124,145       (2.6 %)      141,814       (14.8 %)      441,540       454,975       (3.0 %) 

Capital raising

      50,625       152,481       (66.8 %)      66,463       (23.8 %)      185,391       505,618       (63.3 %) 

Advisory

      166,736       208,218       (19.9 %)      199,556       (16.4 %)      547,688       545,365       0.4 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment banking

      217,361       360,699       (39.7 %)      266,019       (18.3 %)      733,079       1,050,983       (30.2 %) 

Other income (14)

      1,180       7,440       (84.1 %)      3,531       (66.6 %)      7,516       13,218       (43.1 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

      339,408       492,284       (31.1 %)      411,364       (17.5 %)      1,182,135       1,519,176       (22.2 %) 

Non-interest expenses:

                 

Compensation and benefits

      211,818       283,063       (25.2 %)      244,711       (13.4 %)      708,876       884,156       (19.8 %) 

Non-compensation operating expenses

      87,590       84,129       4.1 %      93,661       (6.5 %)      263,639       251,246       4.9 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-interest expenses

      299,408       367,192       (18.5 %)      338,372       (11.5 %)      972,515       1,135,402       (14.3 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 40,000     $ 125,092       (68.0 %)    $ 72,992       (45.2 %)    $ 209,620     $ 383,774       (45.4 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

As a percentage of net revenues:

                 

Compensation and benefits

      62.4 %      57.5 %      490       59.5 %      290       60.0 %      58.2 %      180  

Non-compensation operating expenses

      25.8 %      17.1 %      870       22.8 %      300       22.3 %      16.5 %      580  

Income before income taxes

      11.8 %      25.4 %      (1360 )      17.7 %      (590 )      17.7 %      25.3 %      (760 ) 

 

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Stifel Bancorp - Financial Information and Credit Metrics

 

 

(Unaudited, 000s)    9/30/2022     9/30/2021     % Change     6/30/2022     % Change  

Stifel Bancorp Financial Information:

           

Total assets

    $ 29,307,718     $ 22,164,598       32.2 %    $ 27,957,299       4.8 % 

Total shareholder’s equity

    $ 1,995,933     $ 1,607,936       24.1 %    $ 1,840,273       8.5 % 

Total loans, net (includes loans held for sale)

    $ 20,910,895     $ 13,658,697       53.1 %    $ 19,271,862       8.5 % 

Commercial and industrial

      9,394,557       5,033,313       86.6 %      8,347,410       12.4 % 

Residential real estate

      7,048,762       4,952,372       42.3 %      6,607,825       6.7 % 

Securities-based loans

      2,785,679       2,581,705       7.9 %      2,993,552       (6.9 % 

Commercial real estate

      872,010       369,502       136.0 %      629,459       38.5 % 

Other

      718,242       694,395       3.4 %)      580,374       23.8 %) 

Loans held for sale

      234,927       156,110       50.5 %)      288,676       (18.6 %) 

Investment securities

    $ 7,650,130     $ 7,587,896       0.8 %    $ 7,761,115       (1.4 %) 

Available-for-sale securities, at fair value

      1,660,847       2,242,465       (25.9 %)      1,879,904       (11.7 %) 

Held-to-maturity securities, at amortized cost

      5,989,283       5,345,431       12.0 %      5,881,211       1.8 % 

Total deposits

    $ 27,190,619     $ 20,398,874       33.3 %    $ 26,009,300       4.5 % 

Demand deposits (interest-bearing)

      26,783,010       19,729,032       35.8 %      25,670,438       4.3 % 

Demand deposits (non-interest-bearing)

      397,573       635,059       (37.4 %)      319,682       24.4 %) 

Certificates of deposit

      10,036       34,783       (71.1 %)      19,180       (47.7 %) 

Credit Metrics:

           

Allowance for credit losses

    $ 141,998     $ 114,531       24.0 %    $ 139,553       1.8 % 

Allowance as a percentage of retained loans

      0.68 %      0.84 %        0.73 %   

Net charge-offs as a percentage of average loans

      0.02 %      0.00 %        0.00 %   

Total nonperforming assets

    $ 11,291     $ 8,449       33.6 %    $ 29,430       (61.6 %) 

Nonperforming assets as a percentage of total assets

      0.04 %      0.04 %        0.11 %   

 

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

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Loans and Lending Commitments - Allowance for Credit Losses

 

 

     September 30, 2022               
(Unaudited, 000s)    Loans and Lending
Commitments		      ACL      ACL%     Q3 Provision  

Commercial and industrial

    $ 9,394,557      $ 64,246        0.7 %    $ 902  

Residential real estate

      7,048,762        17,465        0.2 %      (5,151 ) 

Securities-based loans

      2,785,679        3,318        0.1 %      (657 ) 

Commercial real estate

      872,010        11,962        1.4 %      5,480  

Other

      718,242        8,033        1.1 %      975  
  

 

 

     

 

 

       

 

 

  

Loans held for investment, gross

      20,819,250        105,024        0.5 %      1,549  

Loans held for sale

      234,927          
  

 

 

          

Total loans, gross

      21,054,177          

Lending commitments

      5,948,000        36,974        0.6 %      4,904  
  

 

 

     

 

 

       

 

 

  

Loans and lending commitments

    $ 27,002,177      $ 141,998        $ 6,453  
  

 

 

     

 

 

       

 

 

  

 

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

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Consolidated Net Interest Income

 

 

     Three Months Ended  
     September 30, 2022     September 30, 2021     June 30, 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

    $ 1,302.9      $ 7.7        2.38 %    $ 1,537.9      $ 1.0       0.27 %    $ 1,106.4      $ 2.9        1.05 % 

Financial instruments owned

      982.7        3.6        1.45 %      1,001.2        3.6       1.43 %      1,171.1        4.1        1.39 % 

Margin balances

      1,062.3        12.5        4.71 %      1,081.0        6.6       2.45 %      1,105.7        8.7        3.16 % 

Investments:

                        

Asset-backed securities

      6,178.0        61.0        3.95 %      5,393.1        25.2       1.87 %      5,728.1        36.3        2.53 % 

Mortgage-backed securities

      1,032.7        5.3        2.08 %      1,068.4        3.7       1.40 %      991.3        4.7        1.89 % 

Corporate fixed income securities

      722.7        5.1        2.81 %      775.7        5.3       2.72 %      756.2        5.0        2.68 % 

Other

      4.6        —          1.77 %      4.9        —         1.95 %      4.8        —          1.72 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Total investments

      7,938.0        71.4        3.60 %      7,242.1        34.2       1.89 %      7,480.4        46.0        2.46 % 

Loans:

                        

Commercial and industrial

      9,038.0        112.7        4.99 %      4,915.9        40.9       3.33 %      8,175.3        77.9        3.81 % 

Residential real estate

      6,824.3        44.8        2.63 %      4,743.3        30.7       2.59 %      6,301.8        39.5        2.51 % 

Securities-based loans

      2,901.9        31.7        4.36 %      2,425.0        11.7       1.94 %      2,972.2        20.7        2.79 % 

Commercial real estate

      733.4        8.7        4.76 %      365.3        3.4       3.77 %      592.3        5.0        3.35 % 

Loans held for sale

      231.2        2.1        3.57 %      364.1        2.8       3.02 %      293.3        1.9        2.55 % 

Other

      647.3        8.4        5.17 %      677.4        5.6       3.30 %      562.7        5.4        3.85 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Total loans

      20,376.1        208.4        4.09 %      13,491.0        95.1       2.82 %      18,897.6        150.4        3.18 % 

Other interest-bearing assets

      889.5        0.6        0.27 %      702.5        1.3       0.74 %      1,149.5        0.7        0.24 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Total interest-bearing assets/ interest income

      32,551.5        304.2        3.74 %      25,055.7        141.8       2.26 %      30,910.7        212.8        2.75 % 

Interest-bearing liabilities:

                        

Senior notes

      1,114.1        11.2        4.03 %      1,113.0        11.9       4.26 %      1,113.8        11.3        4.05 % 

Deposits

      25,998.2        43.4        0.67 %      19,545.5        1.1       0.02 %      24,231.9        3.6        0.06 % 

Federal Home Loan advances

      542.2        3.3        2.41 %      5.7        —         0.28 %      368.5        0.8        0.86 % 

Other interest-bearing liabilities

      1,416.4        1.9        0.54 %      1,346.0        (3.0 )      (0.87 %)      1,664.3        1.6        0.40 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Total interest-bearing liabilities/ interest expense

    $ 29,070.9        59.8        0.82 %    $ 22,010.2        10.0       0.18 %    $ 27,378.5        17.3        0.25 % 
     

 

 

     

 

 

       

 

 

    

 

 

       

 

 

     

 

 

  

Net interest income/margin

       $ 244.4        3.00 %       $ 131.8       2.10 %       $ 195.5        2.53 % 
     

 

 

     

 

 

       

 

 

    

 

 

       

 

 

     

 

 

  

 

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Stifel Bancorp Net Interest Income

 

 

     Three Months Ended  
     September 30, 2022     September 30, 2021     June 30, 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

    $ 520.5      $ 3.2        2.45 %    $ 730.0      $ 0.3        0.19 %    $ 453.1      $ 1.0        0.87 % 

Investments

      7,938.0        71.4        3.60 %      7,242.1        34.2        1.89 %      7,480.4        46.0        2.46 % 

Loans

      20,376.1        208.4        4.09 %      13,491.0        95.1        2.82 %      18,897.6        150.4        3.18 % 

Other interest-bearing assets

      75.8        0.8        4.37 %      43.5        0.4        3.10 %      68.1        0.8        4.67 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total interest-bearing assets/interest income

    $ 28,910.4      $ 283.8        3.93 %    $ 21,506.6      $ 130.0        2.42 %    $ 26,899.2      $ 198.2        2.95 % 

Interest-bearing liabilities:

                         

Deposits

    $ 25,998.2      $ 43.4        0.67 %    $ 19,545.5      $ 1.1        0.02 %    $ 24,231.9      $ 3.6        0.06 % 

Federal Home Loan advances

      542.2        3.3        2.41 %      5.7        —          0.28 %      368.5        0.8        0.86 % 

Other interest-bearing liabilities

      1.0        —          14.26 %      1.3        —          6.87 %      1.0        —          15.57 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total interest-bearing liabilities/ interest expense

    $ 26,541.4      $ 46.7        0.70 %    $ 19,552.5      $ 1.1        0.02 %    $ 24,601.4      $ 4.4        0.07 % 
     

 

 

     

 

 

       

 

 

     

 

 

       

 

 

     

 

 

  

Net interest income/margin

       $ 237.1        3.28 %       $ 128.9        2.40 %       $ 193.8        2.88 % 
     

 

 

     

 

 

       

 

 

     

 

 

       

 

 

     

 

 

  

 

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GAAP to Core Reconciliation

 

 

     Three Months Ended     Nine Months Ended  
(Unaudited, 000s)    9/30/2022     9/30/2021     Change     6/30/2022     Change     9/30/2022     9/30/2021     Change  

GAAP net revenues

    $ 1,045,139     $ 1,144,938       $ 1,108,126       $ 3,269,792     $ 3,432,863    

Non-GAAP adjustments

      (6 )      —           1         55       153    
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP net revenues

      1,045,133       1,144,938         1,108,127         3,269,847       3,433,016    

GAAP compensation and benefits expense

      611,870       672,385         652,709         1,938,270       2,062,353    

Merger-related (15)

      (6,059 )      (5,780 )        (9,174 )        (24,544 )      (18,073 )   
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP compensation and benefits expense

      605,811       666,605         643,535         1,913,726       2,044,280    

GAAP non-compensation operating expenses

      227,500       216,051         236,876         680,103       622,091    

Merger-related (15)

      (5,905 )      (11,503 )        (7,616 )        (19,003 )      (30,854 )   
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP non-compensation operating expenses

      221,595       204,548         229,260         661,100       591,237    
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Total merger-related adjustments

      (11,958 )      (17,283 )        (16,791 )        (43,602 ))      (49,080 )   
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

GAAP provision for income taxes

      54,600       64,126         57,725         165,885       184,951    

Merger-related and other (15)

      3,051       4,317         4,433         10,979       12,136    
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP provision for income taxes

      57,651       68,443         62,158         176,864       197,087    

Financial ratios:

                 

Compensation and benefits

      58.0 %      58.2 %      (20 )      58.1 %      (10 )      58.5 %      59.5 %      (100 ) 

Non-compensation operating expenses

      21.2 %      17.9 %      330       20.7 %      50       20.2 %      17.3 %      290  

Income before income taxes

      20.8 %      23.9 %      (310 )      21.2 %      (40 )      21.3 %      23.2 %      (190 ) 

Effective tax rate

      26.5 %      25.0 %      150       26.4 %      10       25.4 %      24.7 %      70  

 

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Footnotes

 

 

(1)

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

(2)

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

(3)

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

(4)

Return on average tangible common equity (“ROTCE”) is calculated by dividing annualized net income applicable to common shareholders by average tangible common equity or, in the case of non-GAAP ROTCE, calculated by dividing non-GAAP net income applicable to common shareholders by average tangible common equity. Tangible common equity, also a non-GAAP financial measure, equals total common shareholders’ equity less goodwill and identifiable intangible assets and the deferred taxes on goodwill and intangible assets. Average deferred taxes on goodwill and intangible assets was $59.2 million, $54.5 million, and $57.4 million, as of September 30, 2022 and 2021, and June 30, 2022, respectively.

(5)

Regulatory capital amounts and ratios are estimates as of the date of the Company’s earnings release, October 26, 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 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.

 

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Disclaimer and Legal Notice

 

Forward-Looking Statements

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

All statements not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. For information about the risks and important factors that could affect the Company’s future results, financial condition and liquidity, see “Risk Factors” in Part I of the Company’s Annual Report on Form 10-K for the year ended December 31, 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 third quarter earnings release issued October 26, 2022.

 

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