EX-99.2 3 d406166dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

 

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First Quarter 2023 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  |  First Quarter 2023 Earnings Release    Page 1 of 17

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Consolidated Financial Highlights

 

 

     Three Months Ended  
(Unaudited, 000s, except per share information)    3/31/2023      3/31/2022      % Change     12/31/2022      % Change  

Net revenues

    $ 1,106,793      $ 1,116,527        (0.9 %)    $ 1,121,647        (1.3 %) 

Net income

    $ 157,539      $ 173,549        (9.2 %)    $ 176,621        (10.8 %) 

Preferred dividends

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

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net income available to common shareholders

    $ 148,219      $ 164,229        (9.7 %)    $ 167,301        (11.4 %) 

Earnings per diluted common share

    $ 1.36      $ 1.47        (7.5 %)    $ 1.51        (9.9 %) 

Earnings per diluted common share available to common shareholders

    $ 1.28      $ 1.39        (7.9 %)    $ 1.43        (10.5 %) 

Non-GAAP financial summary (1):

              

Net revenues

    $ 1,106,790      $ 1,116,587        (0.9 %)    $ 1,121,643        (1.3 %) 

Net income

    $ 170,588      $ 184,907        (7.7 %)    $ 194,195        (12.2 %) 

Preferred dividends

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

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net income available to common shareholders

    $ 161,268        175,587        (8.2 %)      184,875        (12.8 %) 

Earnings per diluted common share

    $ 1.48      $ 1.57        (5.7 %)    $ 1.66        (10.8 %) 

Earnings per diluted common share available to common shareholders

    $ 1.40      $ 1.49        (6.0 %)    $ 1.58        (11.4 %) 

Weighted average number of common shares outstanding:

 

           

Basic

      108,754        109,205        (0.4 %)      108,344        0.4 % 

Diluted

      115,390        118,140        (2.3 %)      117,223        (1.6 %) 

Period end common shares outstanding

      106,172        106,626        (0.4 %)      105,348        0.8 % 

Cash dividends declared per common share

    $ 0.36      $ 0.30        20.0 %    $ 0.30        20.0 % 

 

Stifel Financial Corp. Quarterly Financial Supplement  |  First Quarter 2023 Earnings Release    Page 2 of 17

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GAAP Consolidated Results of Operations

 

 

     Three Months Ended  
(Unaudited, 000s, except per share information)    3/31/2023     3/31/2022      % Change     12/31/2022      % Change  

Revenues:

             

Commissions

    $ 169,550     $ 195,909        (13.5 %)    $ 168,945        0.4 % 

Principal transactions

      115,522       159,270        (27.5 %)      125,781        (8.2 %) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Transactional revenues

      285,072       355,179        (19.7 %)      294,726        (3.3 %) 

Capital raising

      60,816       73,450        (17.2 %)      56,771        7.1 % 

Advisory

      151,063       181,396        (16.7 %)      166,935        (9.5 %) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Investment banking

      211,879       254,846        (16.9 %)      223,706        (5.3 %) 

Asset management

      315,569       341,636        (7.6 %)      289,462        9.0 % 

Other income

      (2,293 )      8,888        (125.8 %)      11,862        (119.3 %) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Operating revenues

      810,227       960,549        (15.6 %)      819,756        (1.2 %) 

Interest revenue

      451,564       165,435        173.0 %      416,731        8.4 % 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total revenues

      1,261,791       1,125,984        12.1 %      1,236,487        2.0 % 

Interest expense

      154,998       9,457        nm       114,840        35.0 % 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Net revenues

      1,106,793       1,116,527        (0.9 %)      1,121,647        (1.3 %) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Non-interest expenses:

             

Compensation and benefits

      651,190       673,691        (3.3 %)      647,962        0.5 % 

Occupancy and equipment rental

      82,140       77,026        6.6 %      80,740        1.7 % 

Communication and office supplies

      46,136       42,456        8.7 %      45,209        2.1 % 

Commissions and floor brokerage

      14,440       15,887        (9.1 %)      13,183        9.5 % 

Provision for credit losses

      4,920       8,240        (40.3 %)      6,028        (18.4 %) 

Other operating expenses

      98,084       72,118        36.0 %      94,828        3.4 % 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total non-interest expenses

      896,910       889,418        0.8 %      887,950        1.0 % 

Income before income taxes

      209,883       227,109        (7.6 %)      233,697        (10.2 %) 

Provision for income taxes

      52,344       53,560        (2.3 %)      57,076        (8.3 %) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Net income

      157,539       173,549        (9.2 %)      176,621        (10.8 %) 

Preferred dividends

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

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Net income available to common shareholders

    $ 148,219     $ 164,229        (9.7 %)    $ 167,301        (11.4 %) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Earnings per common share:

             

Basic

    $ 1.36     $ 1.50        (9.3 %)    $ 1.54        (11.7 %) 

Diluted

    $ 1.28     $ 1.39        (7.9 %)    $ 1.43        (10.5 %) 

Weighted average number of common shares outstanding:

 

          

Basic

      108,754       109,205        (0.4 %)      108,344        0.4 % 

Diluted

      115,390       118,140        (2.3 %)      117,223        (1.6 %) 

Cash dividends declared per common share

    $ 0.36     $ 0.30        20.0 %    $ 0.30        20.0 % 

 

Stifel Financial Corp. Quarterly Financial Supplement  |  First Quarter 2023 Earnings Release    Page 3 of 17

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Non-GAAP Consolidated Results of Operations (1)

 

 

     Three Months Ended  
(Unaudited, 000s, except per share information)    3/31/2023     3/31/2022      % Change     12/31/2022      % Change  

Revenues:

             

Commissions

    $ 169,550     $ 195,909        (13.5 %)    $ 168,945        0.4 % 

Principal transactions

      115,522       159,270        (27.5 %)      125,781        (8.2 %) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Transactional revenues

      285,072       355,179        (19.7 %)      294,726        (3.3 %) 

Capital raising

      60,816       73,450        (17.2 %)      56,771        7.1 % 

Advisory

      151,063       181,396        (16.7 %)      166,935        (9.5 %) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Investment banking

      211,879       254,846        (16.9 %)      223,706        (5.3 %) 

Asset management

      315,569       341,636        (7.6 %)      289,462        9.0 % 

Other income

      (2,293 )      8,888        (125.8 %)      11,857        (119.3 %) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Operating revenues

      810,227       960,549        (15.6 %)      819,751        (1.2 %) 

Interest revenue

      451,564       165,435        173.0 %      416,731        8.4 % 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total revenues

      1,261,791       1,125,984        12.1 %      1,236,482        2.0 % 

Interest expense

      155,001       9,397        nm       114,839        35.0 % 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Net revenues

      1,106,790       1,116,587        (0.9 %)      1,121,643        (1.3 %) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Non-interest expenses:

             

Compensation and benefits

      641,937       664,380        (3.4 %)      633,392        1.3 % 

Occupancy and equipment rental

      82,039       77,009        6.5 %      80,555        1.8 % 

Communication and office supplies

      46,134       42,448        8.7 %      45,203        2.1 % 

Commissions and floor brokerage

      14,440       15,887        (9.1 %)      13,183        9.5 % 

Provision for credit losses

      4,920       8,240        (40.3 %)      6,028        (18.4 %) 

Other operating expenses

      90,051       66,661        35.1 %      86,088        4.6 % 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total non-interest expenses

      879,521       874,625        0.6 %      864,449        1.7 % 

Income before income taxes

      227,269       241,962        (6.1 %)      257,194        (11.6 %) 

Provision for income taxes

      56,681       57,055        (0.7 %)      62,999        (10.0 %) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Net income

      170,588       184,907        (7.7 %)      194,195        (12.2 %) 

Preferred dividends

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

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Net income available to common shareholders

    $ 161,268     $ 175,587        (8.2 %)    $ 184,875        (12.8 %) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Earnings per common share:

             

Basic

    $ 1.48     $ 1.61        (8.1 %)    $ 1.71        (13.5 %) 

Diluted

    $ 1.40     $ 1.49        (6.0 %)    $ 1.58        (11.4 %) 

Weighted average number of common shares outstanding:

 

          

Basic

      108,754       109,205        (0.4 %)      108,344        0.4 % 

Diluted

      115,390       118,140        (2.3 %)      117,223        (1.6 %) 

Cash dividends declared per common share

    $ 0.36     $ 0.30        20.0 %    $ 0.30        20.0 % 

 

Stifel Financial Corp. Quarterly Financial Supplement  |  First Quarter 2023 Earnings Release    Page 4 of 17

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Consolidated Financial Summary

 

 

     Three Months Ended  
(Unaudited, 000s)    3/31/2023     3/31/2022     % Change     12/31/2022     % Change  

Net revenues:

           

Global Wealth Management

    $ 757,186     $ 681,725       11.1 %    $ 744,341       1.7 % 

Institutional Group

      332,613       431,363       (22.9 %)      353,882       (6.0 %) 

Other

      16,994       3,439       nm       23,424       nm  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenues

    $ 1,106,793     $ 1,116,527       (0.9 %)    $ 1,121,647       (1.3 %) 

Operating expenses:

           

Global Wealth Management

    $ 441,077     $ 456,312       (3.3 %)    $ 427,270       3.2 % 

Institutional Group

      298,893       334,735       (10.7 %)      309,370       (3.4 %) 

Other

      156,940       98,371       59.5 %      151,310       3.7 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

    $ 896,910     $ 889,418       0.8 %    $ 887,950       1.0 % 

Operating contribution:

           

Global Wealth Management

    $ 316,109     $ 225,413       40.2 %    $ 317,071       (0.3 %) 

Institutional Group

      33,720       96,628       (65.1 %)      44,512       (24.2 %) 

Other

      (139,946 )      (94,932 )      47.4 %      (127,886 )      9.4 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 209,883     $ 227,109       (7.6 %)    $ 233,697       (10.2 %) 

Financial ratios:

           

Compensation and benefits

      58.8 %      60.3 %      (150 )      57.8 %      100  

Non-compensation operating expenses

      22.2 %      19.4 %      280       21.4 %      80  

Income before income taxes

      19.0 %      20.3 %      (130 )      20.8 %      (180 ) 

Effective tax rate

      24.9 %      23.6 %      130       24.4 %      50  

 

Stifel Financial Corp. Quarterly Financial Supplement  |  First Quarter 2023 Earnings Release    Page 5 of 17

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Consolidated Financial Information and Metrics

 

 

     As of and for the Three Months Ended  
(Unaudited, 000s, except per share data)    3/31/2023     3/31/2022     % Change     12/31/2022     % Change  

Financial Information:

           

Total assets

    $ 38,597,653     $ 35,087,698       10.0 %    $ 37,196,124       3.8 % 

Total shareholders’ equity

    $ 5,327,392     $ 5,054,344       5.4 %    $ 5,328,471       (0.0 %) 

Total common equity

    $ 4,642,392     $ 4,369,344       6.2 %    $ 4,643,471       (0.0 %) 

Goodwill and intangible assets

    $ (1,512,400 )    $ (1,449,919 )      4.3 %    $ (1,457,137 )      3.8 % 

DTL on goodwill and intangible assets

    $ 63,455     $ 56,775       11.8 %    $ 61,225       3.6 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Tangible common equity

    $ 3,193,447     $ 2,976,200       7.3 %    $ 3,247,559       (1.7 %) 

Preferred equity

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

Financial Metrics:

           

Book value per common share (2)

    $ 43.73     $ 40.98       6.7 %    $ 44.08       (0.8 %) 

Tangible book value per common share (2)

    $ 30.08     $ 27.91       7.8 %    $ 30.83       (2.4 %) 

Return on common equity (3)

      12.7 %      15.1 %        14.5 %   

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

      13.9 %      16.2 %        16.0 %   

Return on tangible common equity (4)

      18.3 %      22.3 %        20.7 %   

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

      19.9 %      23.8 %        22.9 %   

Pre-tax margin on net revenues

      19.0 %      20.3 %        20.8 %   

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

      20.5 %      21.7 %        22.9 %   

Effective tax rate

      24.9 %      23.6 %        24.4 %   

Non-GAAP effective tax rate (1)

      24.9 %      23.6 %        24.5 %   

 

Stifel Financial Corp. Quarterly Financial Supplement  |  First Quarter 2023 Earnings Release    Page 6 of 17

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Regulatory Capital

 

 

(Unaudited, 000s)    3/31/2023     3/31/2022     % Change     12/31/2022     % Change  

SF Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 3,280,309     $ 3,029,778       8.3 %    $ 3,363,138       (2.5 %) 

Tier 1 capital

    $ 3,965,309     $ 3,714,778       6.7 %    $ 4,048,138       (2.0 %) 

Risk-weighted assets

    $ 23,533,556     $ 19,958,908       17.9 %    $ 23,026,900       2.2 % 

Common equity tier 1 capital ratio

      13.9 %      15.2 %        14.6 %   

Tier 1 risk based capital ratio

      16.8 %      18.6 %        17.6 %   

Tier 1 leverage capital ratio

      10.9 %      11.3 %        11.1 %   

Stifel Bank & Trust Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 1,590,068     $ 1,371,166       16.0 %    $ 1,620,995       (1.9 %) 

Tier 1 capital

    $ 1,590,068     $ 1,371,166       16.0 %    $ 1,620,995       (1.9 %) 

Risk-weighted assets

    $ 14,462,065     $ 12,555,438       15.2 %    $ 14,680,996       (1.5 %) 

Common equity tier 1 capital ratio

      11.0 %      10.9 %        11.0 %   

Tier 1 risk based capital ratio

      11.0 %      10.9 %        11.0 %   

Tier 1 leverage capital ratio

      7.5 %      7.1 %        7.2 %   

Stifel Bank Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 596,152     $ 340,014       75.3 %    $ 468,437       27.3 % 

Tier 1 capital

    $ 596,152     $ 340,014       75.3 %    $ 468,437       27.3 % 

Risk-weighted assets

    $ 4,548,287     $ 2,668,521       70.4 %    $ 4,229,316       7.5 % 

Common equity tier 1 capital ratio

      13.1 %      12.7 %        11.1 %   

Tier 1 risk based capital ratio

      13.1 %      12.7 %        11.1 %   

Tier 1 leverage capital ratio

      7.5 %      7.1 %        7.1 %   

Stifel Net Capital (5):

           

Net capital

    $ 514,500     $ 584,600       (12.0 %)    $ 538,600       (4.5 %) 

Excess net capital

    $ 491,500     $ 554,200       (11.3 %)    $ 516,300       (4.8 %) 

 

Stifel Financial Corp. Quarterly Financial Supplement  |  First Quarter 2023 Earnings Release    Page 7 of 17

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Global Wealth Management - Summary Results of Operations

 

 

     Three Months Ended  
(Unaudited, 000s)    3/31/2023     3/31/2022     % Change     12/31/2022     % Change  

Revenues:

           

Commissions

    $ 110,191     $ 130,776       (15.7 %)    $ 112,644       (2.2 %) 

Principal transactions

      51,064       45,544       12.1 %      52,913       (3.5 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactional revenues

      161,255       176,320       (8.5 %)      165,557       (2.6 %) 

Asset management

      315,537       341,613       (7.6 %)      289,445       9.0 % 

Net interest

      281,932       156,760       79.8 %      284,998       (1.1 %) 

Investment banking (6)

      4,158       5,147       (19.2 %)      4,814       (13.6 %) 

Other income

      (5,696 )      1,885       (402.2 %)      (473 )      1104.2 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

      757,186       681,725       11.1 %      744,341       1.7 % 

Non-interest expenses:

           

Compensation and benefits

      342,423       364,993       (6.2 %)      328,099       4.4 % 

Non-compensation operating expenses

      98,654       91,319       8.0 %      99,171       (0.5 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-interest expenses

      441,077       456,312       (3.3 %)      427,270       3.2 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 316,109     $ 225,413       40.2 %    $ 317,071       (0.3 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

As a percentage of net revenues:

           

Compensation and benefits

      45.2 %      53.5 %      (830 )      44.1 %      110  

Non-compensation operating expenses

      13.1 %      13.4 %      (30 )      13.3 %      (20 ) 

Income before income taxes

      41.7 %      33.1 %      860       42.6 %      (90 ) 

 

Stifel Financial Corp. Quarterly Financial Supplement  |  First Quarter 2023 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)    3/31/2023     3/31/2022     % Change     12/31/2022     % Change  

Financial advisors (including independent contractors) (7)

      2,350       2,321       1.2 %      2,344       0.3 % 

Total client assets

    $ 405,988,000     $ 421,414,000       (3.7 %)    $ 389,818,000       4.1 % 

Fee-based client assets

    $ 149,541,000     $ 157,910,000       (5.3 %)    $ 144,952,000       3.2 % 

Transactional assets

    $ 256,447,000     $ 263,504,000       (2.7 %)    $ 244,866,000       4.7 % 

Secured client lending (8)

    $ 3,393,000     $ 4,082,000       (16.9 %)    $ 3,576,000       (5.1 %) 

Asset Management Revenue (000s):

           

Private Client Group (9)

    $ 259,491     $ 293,301       (11.5 %)    $ 240,446       7.9 % 

Asset Management

      32,241       34,635       (6.9 %)      30,690       5.1 % 

Third-party Bank Sweep Program

      11,261       942       nm       5,522       103.9 % 

Other (10)

      12,576       12,758       (1.4 %)      12,804       (1.8 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total asset management revenues

    $ 315,569     $ 341,636       (7.6 %)    $ 289,462       9.0 % 

Fee-based Assets (millions):

           

Private Client Group (9)

    $ 131,483       138,219       (4.9 %)    $ 126,043       4.3 % 

Asset Management

      33,409       34,716       (3.8 %)      32,233       3.6 % 

Elimination (11)

      (15,351 )      (15,025 )      2.2 %      (13,324 )      15.2 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fee-based assets

    $ 149,541     $ 157,910       (5.3 %)    $ 144,952       3.2 % 

Third-party Bank Sweep Program

    $ 915     $ 5,492       (83.3 %)    $ 1,984       (53.9 %) 

ROA (bps) (12):

           

Private Client Group (9)

      82.3       82.9         80.9    

Asset Management

      38.6       39.9         38.1    

Third-party Bank Sweep Program

      303.9       6.2         137.2    

Stifel Bancorp Deposits (millions):

           

Sweep Deposits

    $ 14,057     $ 22,193       (36.7 %)    $ 16,628       (15.5 %) 

Smart Rate Deposits

      10,778       429       nm       8,710       23.7 % 

Direct Wealth Management Deposits at Stifel Bancorp

      189       56       237.5 %      43       339.5 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Stifel Bancorp Wealth Management Deposits

      25,024       22,678       10.3 %      25,381       (1.4 %) 

Other Bank Deposits

      3,301       1,518       117.5 %      1,736       90.1 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Stifel Bancorp Deposits

    $ 28,325     $ 24,196       17.1 %    $ 27,117       4.5 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Wealth Management Cash (millions):

           

Stifel Bancorp Wealth Management Deposits

    $ 25,024     $ 22,678       10.3 %    $ 25,381       (1.4 %) 

Third-Party Bank Sweep Program

      915       5,492       (83.3 %)      1,984       (53.9 %) 

Other Sweep Cash

      252       390       (35.4 %)      187       34.8 % 

Money Market Mutual Funds

      7,434       5,899       26.0 %      6,529       13.9 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Wealth Management Cash

    $ 33,625     $ 34,459       (2.4 %)    $ 34,081       (1.3 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement  |  First Quarter 2023 Earnings Release    Page 9 of 17

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Institutional Group - Summary Results of Operations

 

 

     Three Months Ended  
(Unaudited, 000s)    3/31/2023     3/31/2022     % Change     12/31/2022     % Change  

Revenues:

           

Commissions

    $ 59,359     $ 65,133       (8.9 %)    $ 56,301       5.4 % 

Principal transactions

      64,458       113,726       (43.3 %)      72,869       (11.5 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactional revenues

      123,817       178,859       (30.8 %)      129,170       (4.1 %) 

Capital raising

      56,658       68,303       (17.0 %)      51,956       9.0 % 

Advisory

      151,063       181,396       (16.7 %)      166,935       (9.5 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment banking

      207,721       249,699       (16.8 %)      218,891       (5.1 %) 

Other income (13)

      1,075       2,805       (61.7 %)      5,821       (81.5 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

      332,613       431,363       (22.9 %)      353,882       (6.0 %) 

Non-interest expenses:

           

Compensation and benefits

      205,905       252,347       (18.4 %)      220,730       (6.7 %) 

Non-compensation operating expenses

      92,988       82,388       12.9 %      88,640       4.9 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-interest expenses

      298,893       334,735       (10.7 %)      309,370       (3.4 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 33,720     $ 96,628       (65.1 %)    $ 44,512       (24.2 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

As a percentage of net revenues:

           

Compensation and benefits

      61.9 %      58.5 %      340       62.4 %      (50 ) 

Non-compensation operating expenses

      28.0 %      19.1 %      890       25.0 %      300  

Income before income taxes

      10.1 %      22.4 %      (1,230 )      12.6 %      (250 ) 

 

Stifel Financial Corp. Quarterly Financial Supplement  |  First Quarter 2023 Earnings Release    Page 10 of 17

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Stifel Bancorp - Financial Information and Credit Metrics

 

 

(Unaudited, 000s)    3/31/2023     3/31/2022     % Change     12/31/2022     % Change  

Stifel Bancorp Financial Information:

           

Total assets

    $ 30,701,371     $ 26,115,139       17.6 %    $ 29,318,421       4.7 % 

Total shareholder’s equity

    $ 2,199,821     $ 1,782,875       23.4 %    $ 2,071,882       6.2 % 

Total loans, net (includes loans held for sale)

    $ 20,935,133     $ 17,908,268       16.9 %    $ 20,622,004       1.5 % 

Residential real estate

      7,494,788       6,008,507       24.7 %      7,371,671       1.7 % 

Commercial and industrial

      4,755,664       4,546,700       4.6 %      4,897,176       (2.9 %) 

Fund banking

      4,623,423       3,109,807       48.7 %      4,182,641       10.5 % 

Securities-based loans

      2,558,343       2,954,212       (13.4 %)      2,724,551       (6.1 %) 

Commercial real estate

      663,325       499,825       32.7 %      675,599       (1.8 %) 

Construction and land

      644,800       521,623       23.6 %      593,191       8.7 % 

Other

      159,101       120,874       31.6 %      157,729       0.9 % 

Loans held for sale

      225,365       315,427       (28.6 %)      156,912       43.6 % 

Investment securities

    $ 7,607,385     $ 7,240,149       5.1 %    $ 7,624,448       (0.2 %) 

Available-for-sale securities, at fair value

      1,624,458       1,926,144       (15.7 %)      1,636,041       (0.7 %) 

Held-to-maturity securities, at amortized cost

      5,982,927       5,314,005       12.6 %      5,988,407       (0.1 %) 

Unrealized losses on available-for-sale securities

      (196,621 )      (95,692 )      105.5 %      (227,178 )      (13.5 %) 

Total deposits

    $ 28,325,327     $ 24,195,626       17.1 %    $ 27,117,111       4.5 % 

Demand deposits (interest-bearing)

      27,862,336       23,553,384       18.3 %      26,805,073       3.9 % 

Demand deposits (non-interest-bearing)

      456,091       618,435       (26.3 %)      305,138       49.5 % 

Certificates of deposit

      6,900       23,807       (71.0 %)      6,900       0.0 % 

Credit Metrics:

           

Allowance for credit losses

    $ 152,906     $ 126,802       20.6 %    $ 147,853       3.4 % 

Allowance as a percentage of retained loans

      0.73 %      0.72 %        0.72 %   

Net charge-offs as a percentage of average loans

      0.00 %      0.00 %        0.00 %   

Total nonperforming assets

    $ 10,749     $ 17,124       (37.2 %)    $ 10,374       3.6 % 

Nonperforming assets as a percentage of total assets

      0.04 %      0.07 %        0.04 %   

 

Stifel Financial Corp. Quarterly Financial Supplement  |  First Quarter 2023 Earnings Release    Page 11 of 17

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Loans and Lending Commitments - Allowance for Credit Losses

 

 

     March 31, 2023               
(Unaudited, 000s)    Loans and Lending
Commitments		      ACL      ACL%     Q1 Provision  

Residential real estate

    $ 7,494,788      $ 22,696        0.3 %    $ 2,255  

Commercial and industrial

      4,755,664        55,734        1.2 %      1,458  

Fund banking

      4,623,423        12,943        0.3 %      1,232  

Securities-based loans

      2,558,343        3,117        0.1 %      (40 ) 

Commercial real estate

      663,325        11,566        1.7 %      (1,331 ) 

Construction and land

      644,800        10,317        1.6 %      1,749  

Other

      159,101        789        0.5 %      53  
  

 

 

     

 

 

       

 

 

  

Loans held for investment, gross

      20,899,444        117,162        0.6 %      5,376  

Loans held for sale

      225,365          
  

 

 

          

Total loans, gross

      21,124,809          

Lending-related commitments (unfunded)

      6,113,000        35,744        0.6 %      (456 ) 
  

 

 

     

 

 

       

 

 

  

Loans and lending-related commitments

    $ 27,237,809      $ 152,906        $ 4,920  
  

 

 

     

 

 

       

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement  |  First Quarter 2023 Earnings Release    Page 12 of 17

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Consolidated Net Interest Income

 

 

    Three Months Ended  
    March 31, 2023     March 31, 2022     December 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

   $ 1,989.5     $ 22.7       4.57 %    $ 1,340.3     $ 1.1       0.32 %    $ 1,641.8     $ 18.3       4.45 % 

Financial instruments owned

     877.7       3.7       1.70 %      1,176.0       5.4       1.84 %      906.2       7.5       3.31 % 

Margin balances

     831.2       14.9       7.16 %      1,089.6       6.9       2.54 %      985.2       15.6       6.33 % 

Investments:

                  

Asset-backed securities

     6,202.4       98.8       6.37 %      5,598.6       24.9       1.78 %      6,216.5       86.1       5.54 % 

Mortgage-backed securities

     986.6       5.4       2.18 %      1,007.3       4.4       1.75 %      1,003.6       5.4       2.15 % 

Corporate fixed income securities

     637.5       4.1       2.61 %      773.0       5.0       2.57 %      646.4       4.5       2.79 % 

Other

     4.7       —         2.55 %      5.3       —         1.84 %      4.5       —         2.18 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total investments

     7,831.2       108.3       5.53 %      7,384.2       34.3       1.86 %      7,871.0       96.0       4.88 % 

Loans:

                  

Residential real estate

     7,446.1       53.5       2.87 %      5,684.6       35.5       2.50 %      7,240.6       55.7       3.08 % 

Commercial and industrial

     4,816.3       94.3       7.83 %      4,380.0       41.3       3.77 %      4,997.7       84.4       6.75 % 

Fund banking

     4,396.4       76.3       6.94 %      3,176.0       20.8       2.62 %      4,348.7       65.3       6.01 % 

Securities-based loans

     2,638.0       42.5       6.44 %      2,910.7       14.4       1.98 %      2,735.5       40.0       5.85 % 

Commercial real estate

     666.8       10.9       6.57 %      462.9       2.9       2.52 %      805.3       12.5       6.22 % 

Construction and land

     612.6       11.5       7.49 %      525.3       4.3       3.25 %      583.7       9.9       6.77 % 

Loans held for sale

     206.3       3.4       6.53 %      221.8       1.3       2.29 %      168.0       2.1       5.09 % 

Other

     153.9       2.7       7.12 %      117.1       0.8       2.75 %      147.6       2.3       6.46 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total loans

     20,936.4       295.1       5.64 %      17,478.4       121.3       2.78 %      21,027.1       272.2       5.18 % 

Other interest-bearing assets

     797.3       6.9       3.45 %      760.3       (3.6 )      (1.88 %)      770.6       7.1       3.69 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing assets/ interest income

     33,263.3       451.6       5.43 %      29,228.8       165.4       2.26 %      33,201.9       416.7       5.02 % 

Interest-bearing liabilities:

                  

Senior notes

     1,114.6       12.5       4.49 %      1,113.6       11.4       4.10 %      1,114.4       10.5       3.77 % 

Deposits

     27,138.0       137.3       2.02 %      23,129.9       0.9       0.02 %      27,267.0       98.7       1.45 % 

Federal Home Loan advances

     5.6       0.1       4.92 %      40.4       —         0.30 %      —         —         0.00 % 

Other interest-bearing liabilities

     1,164.9       5.1       1.76 %      1,559.3       (2.8 )      (0.75 %)      1,303.0       5.6       1.72 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing liabilities/ interest expense

   $ 29,423.1       155.0       2.11 %    $ 25,843.2       9.5       0.15 %    $ 29,684.4       114.8       1.55 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

Net interest income/margin

     $ 296.6       3.57 %      $ 155.9       2.13 %      $ 301.9       3.64 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement  |  First Quarter 2023 Earnings Release    Page 13 of 17

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Stifel Bancorp Net Interest Income

 

 

     Three Months Ended  
     March 31, 2023     March 31, 2022     December 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

    $ 916.1      $ 11.2        4.91 %    $ 549.5      $ 0.3        0.22 %    $ 889.4      $ 9.4        4.24 % 

Investments

      7,831.2        108.3        5.53 %      7,384.2        34.3        1.86 %      7,871.0        96.0        4.88 % 

Loans

      20,936.4        295.1        5.64 %      17,478.4        121.3        2.78 %      21,027.1        272.2        5.18 % 

Other interest-bearing assets

      57.4        0.6        3.86 %      50.1        0.4        2.87 %      55.1        0.7        4.56 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total interest-bearing assets/interest income

    $ 29,741.1      $ 415.2        5.58 %    $ 25,462.2      $ 156.3        2.45 %    $ 29,842.6      $ 378.3        5.07 % 

Interest-bearing liabilities:

                         

Deposits

    $ 27,138.0      $ 137.3        2.02 %    $ 23,129.9      $ 0.9        0.02 %    $ 27,267.0      $ 98.7        1.45 % 

Federal Home Loan advances

      5.6        0.1        4.92 %      40.4        —          0.30 %      —          —          0.00 % 

Other interest-bearing liabilities

      0.8        —          17.48 %      1.1        0.1        13.24 %      0.9        0.1        15.64 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total interest-bearing liabilities/interest expense

    $ 27,144.4        137.4        2.02 %    $ 23,171.4        1.0        0.02 %    $ 27,267.9        98.8        1.45 % 
     

 

 

     

 

 

       

 

 

     

 

 

       

 

 

     

 

 

  

Net interest income/margin

       $ 277.8        3.74 %       $ 155.3        2.44 %       $ 279.5        3.75 % 
     

 

 

     

 

 

       

 

 

     

 

 

       

 

 

     

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement  |  First Quarter 2023 Earnings Release    Page 14 of 17

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GAAP to Core Reconciliation

 

 

     Three Months Ended  
(Unaudited, 000s)    3/31/2023     3/31/2022     Change     12/31/2022     Change  

GAAP net revenues

    $ 1,106,793     $ 1,116,527       $ 1,121,647    

Non-GAAP adjustments

      (3 )      60         (4 )   
  

 

 

    

 

 

      

 

 

    

Non-GAAP net revenues

      1,106,790       1,116,587         1,121,643    

GAAP compensation and benefits expense

      651,190       673,691         647,962    

Merger-related (14)

      (9,253 )      (9,311 )        (14,570 )   
  

 

 

    

 

 

      

 

 

    

Non-GAAP compensation and benefits expense

      641,937       664,380         633,392    

GAAP non-compensation operating expenses

      245,720       215,727         239,988    

Merger-related (14)

      (8,136 )      (5,482 )        (8,931 )   
  

 

 

    

 

 

      

 

 

    

Non-GAAP non-compensation operating expenses

      237,584       210,245         231,057    
  

 

 

    

 

 

      

 

 

    

Total merger-related adjustments

      (17,386 )      (14,853 )        (23,497 )   
  

 

 

    

 

 

      

 

 

    

GAAP provision for income taxes

      52,344       53,560         57,076    

Merger-related and other (14)

      4,337       3,495         5,923    
  

 

 

    

 

 

      

 

 

    

Non-GAAP provision for income taxes

      56,681       57,055         62,999    

Financial ratios:

           

Compensation and benefits

      58.0 %      59.5 %      (150 )      56.5 %      150  

Non-compensation operating expenses

      21.5 %      18.8 %      270       20.6 %      90  

Income before income taxes

      20.5 %      21.7 %      (120 )      22.9 %      (240 ) 

Effective tax rate

      24.9 %      23.6 %      130       24.5 %      40  

 

Stifel Financial Corp. Quarterly Financial Supplement  |  First Quarter 2023 Earnings Release    Page 15 of 17

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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”), a non-GAAP financial measure, 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 $62.3 million, $55.5 million, and $60.4 million, as of March 31, 2023 and 2022, and December 31, 2022, respectively.

(5)

Regulatory capital amounts and ratios are estimates as of the date of the Company’s earnings release, April 26, 2023.

(6)

Includes capital raising and advisory revenues.

(7)

Includes independent contractors of 102, 92, and 102 as of March 31, 2023 and 2022, and December 31, 2022, respectively.

(8)

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

(9)

Includes Private Client Group and Trust Business.

(10)

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

(11)

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

(12)

Return on assets (ROA) is calculated based on prior period-end balances for Private Client Group, period-end balances for Asset Management, and average quarterly balances for Individual Program Banks.

(13)

Includes net interest, asset management, and other income.

(14)

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

 

Stifel Financial Corp. Quarterly Financial Supplement  |  First Quarter 2023 Earnings Release    Page 16 of 17

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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, 2022. Forward-looking statements speak only as to the date they are made. The Company disclaims any intent or obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Use of Non-GAAP Financial Measures

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

Legal Notice

This Financial Supplement contains financial, statistical, and business-related information, as well as business and segment trends. The information should be read in conjunction with the Company’s first quarter earnings release issued April 26, 2023.

 

Stifel Financial Corp. Quarterly Financial Supplement  |  First Quarter 2023 Earnings Release    Page 17 of 17