EX-99.2 3 d283902dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

 

 

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First 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  |  First Quarter 2022 Earnings Release    Page 1 of 17

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Consolidated Financial Highlights

 

 

     Three Months Ended  
(Unaudited, 000s, except per share information)    3/31/2022      3/31/2021      % Change     12/31/2021      % Change  

Net revenues

    $ 1,116,527      $ 1,134,789        (1.6 %)    $ 1,304,225        (14.4 %) 

Net income

    $ 173,549      $ 173,015        0.3 %    $ 261,390        (33.6 %) 

Preferred dividends

      9,320        8,289        12.4 %      9,320        0.0 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net income available to common shareholders

    $ 164,229      $ 164,726        (0.3 %)    $ 252,070        (34.8 %) 

Earnings per diluted common share

    $ 1.47      $ 1.47        0.0 %    $ 2.20        (33.2 %) 

Earnings per diluted common share available to common shareholders

    $ 1.39      $ 1.40        (0.7 %)    $ 2.12        (34.4 %) 

Non-GAAP financial summary (1):

              

Net revenues

    $ 1,116,587      $ 1,134,980        (1.6 %)    $ 1,304,225        (14.4 %) 

Net income

    $ 184,907      $ 184,714        0.1 %    $ 274,708        (32.7 %) 

Preferred dividends

      9,320        8,289        12.4 %      9,320        0.0 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net income available to common shareholders

    $ 175,587        176,425        (0.5 %)      265,388        (33.8 %) 

Earnings per diluted common share

    $ 1.57      $ 1.57        0.0 %    $ 2.31        (32.0 %) 

Earnings per diluted common share available to common shareholders

    $ 1.49      $ 1.50        (0.7 %)    $ 2.23        (33.2 %) 

 

Weighted average number of common shares outstanding:

Basic

      109,205        107,746        1.4 %      107,185        1.9 % 

Diluted

      118,140        117,875        0.2 %      118,959        (0.7 %) 

Period end common shares outstanding

      106,626        105,215        1.3 %      104,499        2.0 % 

Cash dividends declared per common share

    $ 0.30      $ 0.15        100.0 %    $ 0.15        100.0 % 

 

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

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GAAP Consolidated Results of Operations

 

 

     Three Months Ended  
(Unaudited, 000s, except per share information)    3/31/2022      3/31/2021     % Change     12/31/2021      % Change  

Revenues:

             

Commissions

    $ 195,909      $ 213,614       (8.3 %)    $ 211,068        (7.2 %) 

Principal transactions

      159,270        165,006       (3.5 %)      144,584        10.2 % 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Transactional revenues

      355,179        378,620       (6.2 %)      355,652        (0.1 %) 

Capital raising

      73,450        208,806       (64.8 %)      166,591        (55.9 %) 

Advisory

      181,396        130,482       39.0 %      310,780        (41.6 %) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Investment banking

      254,846        339,288       (24.9 %)      477,371        (46.6 %) 

Asset management

      341,636        278,147       22.8 %      318,638        7.2 % 

Other income

      8,888        25,634       (65.3 %)      14,496        (38.7 %) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Operating revenues

      960,549        1,021,689       (6.0 %)      1,166,157        (17.6 %) 

Interest revenue

      165,435        127,540       29.7 %      145,425        13.8 % 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total revenues

      1,125,984        1,149,229       (2.0 %)      1,311,582        (14.2 %) 

Interest expense

      9,457        14,440       (34.5 %)      7,357        28.5 % 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Net revenues

      1,116,527        1,134,789       (1.6 %)      1,304,225        (14.4 %) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Non-interest expenses:

             

Compensation and benefits

      673,691        697,914       (3.5 %)      757,948        (11.1 %) 

Occupancy and equipment rental

      77,026        72,032       6.9 %      75,080        2.6 % 

Communication and office supplies

      42,456        41,825       1.5 %      41,925        1.3 % 

Commissions and floor brokerage

      15,887        15,703       1.2 %      15,257        4.1 % 

Provision for credit losses

      8,240        (5,252 )      nm       4,062        102.9 % 

Other operating expenses

      72,118        84,675       (14.8 %)      91,291        (21.0 %) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total non-interest expenses

      889,418        906,897       (1.9 %)      985,563        (9.8 %) 

Income before income taxes

      227,109        227,892       (0.3 %)      318,662        (28.7 %) 

Provision for income taxes

      53,560        54,877       (2.4 %)      57,272        (6.5 %) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Net income

      173,549        173,015       0.3 %      261,390        (33.6 %) 

Preferred dividends

      9,320        8,289       12.4 %      9,320        0.0 % 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Net income available to common shareholders

    $ 164,229      $ 164,726       (0.3 %)    $ 252,070        (34.8 %) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Earnings per common share:

             

Basic

    $ 1.50      $ 1.53       (2.0 %)    $ 2.35        (36.2 %) 

Diluted

    $ 1.39      $ 1.40       (0.7 %)    $ 2.12        (34.4 %) 

Weighted average number of common shares outstanding:

             

Basic

      109,205        107,746       1.4 %      107,185        1.9 % 

Diluted

      118,140        117,875       0.2 %      118,959        (0.7 %) 

Cash dividends declared per common share

    $ 0.30      $ 0.15       100.0 %    $ 0.15        100.0 % 

 

Stifel Financial Corp. Quarterly Financial Supplement  |  First Quarter 2022 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)    3/31/2022      3/31/2021     % Change     12/31/2021      % Change  

Revenues:

             

Commissions

    $ 195,909      $ 213,614       (8.3 %)    $ 211,068        (7.2 %) 

Principal transactions

      159,270        165,006       (3.5 %)      144,584        10.2 % 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Transactional revenues

      355,179        378,620       (6.2 %)      355,652        (0.1 %) 

Capital raising

      73,450        208,806       (64.8 %)      166,591        (55.9 %) 

Advisory

      181,396        130,482       39.0 %      310,780        (41.6 %) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Investment banking

      254,846        339,288       (24.9 %)      477,371        (46.6 %) 

Asset management

      341,636        278,147       22.8 %      318,638        7.2 % 

Other income

      8,888        25,700       (65.4 %)      14,496        (38.7 %) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Operating revenues

      960,549        1,021,755       (6.0 %)      1,166,157        (17.6 %) 

Interest revenue

      165,435        127,540       29.7 %      145,425        13.8 % 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total revenues

      1,125,984        1,149,295       (2.0 %)      1,311,582        (14.2 %) 

Interest expense

      9,397        14,315       (34.4 %)      7,357        27.7 % 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Net revenues

      1,116,587        1,134,980       (1.6 %)      1,304,225        (14.4 %) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Non-interest expenses:

             

Compensation and benefits

      664,380        691,740       (4.0 %)      749,929        (11.4 %) 

Occupancy and equipment rental

      77,009        72,002       7.0 %      75,062        2.6 % 

Communication and office supplies

      42,448        41,825       1.5 %      41,925        1.2 % 

Commissions and floor brokerage

      15,887        15,703       1.2 %      15,257        4.1 % 

Provision for credit losses

      8,240        (5,252 )      nm       4,062        102.9 % 

Other operating expenses

      66,661        75,641       (11.9 %)      83,094        (19.8 %) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total non-interest expenses

      874,625        891,659       (1.9 %)      969,329        (9.8 %) 

Income before income taxes

      241,962        243,321       (0.6 %)      334,896        (27.8 %) 

Provision for income taxes

      57,055        58,607       (2.6 %)      60,188        (5.2 %) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Net income

      184,907        184,714       0.1 %      274,708        (32.7 %) 

Preferred dividends

      9,320        8,289       12.4 %      9,320        0.0 % 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Net income available to common shareholders

    $ 175,587      $ 176,425       (0.5 %)    $ 265,388        (33.8 %) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Earnings per common share:

             

Basic

    $ 1.61      $ 1.64       (1.8 %)    $ 2.48        (35.1 %) 

Diluted

    $ 1.49      $ 1.50       (0.7 %)    $ 2.23        (33.2 %) 

Weighted average number of common shares outstanding:

             

Basic

      109,205        107,746       1.4 %      107,185        1.9 % 

Diluted

      118,140        117,875       0.2 %      118,959        (0.7 %) 

Cash dividends declared per common share

    $ 0.30      $ 0.15       100.0 %    $ 0.15        100.0 % 

 

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

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Consolidated Financial Summary

 

 

     Three Months Ended  
(Unaudited, 000s)    3/31/2022     3/31/2021     % Change     12/31/2021     % Change  

Net revenues:

           

Global Wealth Management

    $ 681,725     $ 631,495       8.0 %    $ 674,242       1.1 % 

Institutional Group

      431,363       506,081       (14.8 %)      633,263       (31.9 %) 

Other

      3,439       (2,787 )      nm       (3,280 )      nm  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenues

    $ 1,116,527     $ 1,134,789       (1.6 %)    $ 1,304,225       (14.4 %) 

Operating expenses:

           

Global Wealth Management

    $ 456,312     $ 408,264       11.8 %    $ 441,944       3.3 % 

Institutional Group

      334,735       388,893       (13.9 %)      458,100       (26.9 %) 

Other

      98,371       109,740       (10.4 %)      85,519       15.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

    $ 889,418     $ 906,897       (1.9 %)    $ 985,563       (9.8 %) 

Operating contribution:

           

Global Wealth Management

    $ 225,413     $ 223,231       1.0 %    $ 232,298       (3.0 %) 

Institutional Group

      96,628       117,188       (17.5 %)      175,163       (44.8 %) 

Other

      (94,932 )      (112,527 )      (15.6 %)      (88,799 )      6.9 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 227,109     $ 227,892       (0.3 %)    $ 318,662       (28.7 %) 

Financial ratios:

           

Compensation and benefits

      60.3 %      61.5 %      (120 )      58.1 %      220  

Non-compensation operating expenses

      19.4 %      18.4 %      100       17.5 %      190  

Income before income taxes

      20.3 %      20.1 %      20       24.4 %      (410 ) 

Effective tax rate

      23.6 %      24.1 %      (50 )      18.0 %      560  

 

Stifel Financial Corp. Quarterly Financial Supplement  |  First Quarter 2022 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)    3/31/2022     3/31/2021     % Change     12/31/2021     % Change  

Financial Information:

           

Total assets

    $ 35,087,698     $ 28,141,581       24.7 %    $ 34,049,715       3.0 % 

Total shareholders’ equity

    $ 5,054,344     $ 4,318,872       17.0 %    $ 5,034,959       0.4 % 

Total common equity

    $ 4,369,344     $ 3,783,872       15.5 %    $ 4,349,959       0.4 % 

Goodwill and intangible assets

    $ (1,449,919 )    $ (1,319,089 )      9.9 %    $ (1,455,049 )      (0.4 %) 

DTL on goodwill and intangible assets

    $ 56,775     $ 52,651       7.8 %    $ 58,126       (2.3 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Tangible common equity

    $ 2,976,200     $ 2,517,434       18.2 %    $ 2,953,036       0.8 % 

Preferred equity

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

Financial Metrics:

           

Book value per common share (2)

    $ 40.98     $ 35.96       14.0 %    $ 41.63       (1.6 %) 

Tangible book value per common share (2)

    $ 27.91     $ 23.93       16.6 %    $ 28.26       (1.2 %) 

Return on common equity (3)

      15.1 %      17.6 %        23.7 %   

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

      16.2 %      18.8 %        25.0 %   

Return on tangible common equity (4)

      22.3 %      26.5 %        34.7 %   

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

      23.8 %      28.4 %        36.6 %   

Pre-tax margin on net revenues

      20.3 %      20.1 %        24.4 %   

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

      21.7 %      21.4 %        25.7 %   

Effective tax rate

      23.6 %      24.1 %        18.0 %   

Non-GAAP effective tax rate (1)

      23.6 %      24.1 %        18.0 %   

 

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

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Regulatory Capital

 

 

     Three Months Ended  
(Unaudited, 000s)    3/31/2022     3/31/2021     % Change     12/31/2021     % Change  

SF Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 3,029,778     $ 2,498,655       21.3 %    $ 2,938,955       3.1 % 

Tier 1 capital

    $ 3,714,778     $ 3,033,655       22.5 %    $ 3,623,955       2.5 % 

Risk-weighted assets

    $ 19,958,908     $ 15,655,984       27.5 %    $ 19,366,321       3.1 % 

Common equity tier 1 capital ratio

      15.2 %      16.0 %        15.2 %   

Tier 1 risk based capital ratio

      18.6 %      19.4 %        18.7 %   

Tier 1 leverage capital ratio

      11.3 %      11.5 %        11.7 %   

Stifel Bank & Trust Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 1,371,166     $ 1,044,894       31.2 %    $ 1,274,994       7.5 % 

Tier 1 capital

    $ 1,371,166     $ 1,044,894       31.2 %    $ 1,274,994       7.5 % 

Risk-weighted assets

    $ 12,555,438     $ 9,428,239       33.2 %    $ 12,001,325       4.6 % 

Common equity tier 1 capital ratio

      10.9 %      11.1 %        10.6 %   

Tier 1 risk based capital ratio

      10.9 %      11.1 %        10.6 %   

Tier 1 leverage capital ratio

      7.1 %      7.1 %        7.1 %   

Stifel Bank Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 340,014     $ 280,718       21.1 %    $ 302,231       12.5 % 

Tier 1 capital

    $ 340,014     $ 280,718       21.1 %    $ 302,231       12.5 % 

Risk-weighted assets

    $ 2,668,521     $ 1,517,312       75.9 %    $ 2,197,216       21.5 % 

Common equity tier 1 capital ratio

      12.7 %      18.5 %        13.8 %   

Tier 1 risk based capital ratio

      12.7 %      18.5 %        13.8 %   

Tier 1 leverage capital ratio

      7.1 %      7.3 %        7.1 %   

Stifel Net Capital (5):

           

Net capital

    $ 584,600     $ 570,300       2.5 %    $ 614,200       (4.8 %) 

Excess net capital

    $ 554,200     $ 541,600       2.3 %    $ 584,800       (5.2 %) 

 

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

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Global Wealth Management- Summary Results of Operations

 

 

     Three Months Ended  
(Unaudited, 000s)    3/31/2022     3/31/2021     % Change     12/31/2021     % Change  

Revenues:

           

Commissions

    $ 130,776     $ 147,505       (11.3 %)    $ 146,335       (10.6 %) 

Principal transactions

      45,544       53,599       (15.0 %)      48,592       (6.3 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactional revenues

      176,320       201,104       (12.3 %)      194,927       (9.5 %) 

Asset management

      341,613       278,109       22.8 %      318,612       7.2 % 

Net interest

      156,760       117,775       33.1 %      138,891       12.9 % 

Investment banking (6)

      5,147       13,549       (62.0 %)      11,183       (54.0 %) 

Other income

      1,885       20,958       (91.0 %)      10,629       (82.3 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

      681,725       631,495       8.0 %      674,242       1.1 % 

Non-interest expenses:

           

Compensation and benefits

      364,993       336,721       8.4 %      349,428       4.5 % 

Non-compensation operating expenses

      91,319       71,543       27.6 %      92,516       (1.3 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-interest expenses

      456,312       408,264       11.8 %      441,944       3.3 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 225,413     $ 223,231       1.0 %    $ 232,298       (3.0 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

As a percentage of net revenues:

           

Compensation and benefits

      53.5 %      53.3 %      20       51.8 %      170  

Non-compensation operating expenses

      13.4 %      11.4 %      200       13.7 %      (30 ) 

Income before income taxes

      33.1 %      35.3 %      (220 )      34.5 %      (140 ) 

 

Stifel Financial Corp. Quarterly Financial Supplement  |  First 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)    3/31/2022     3/31/2021     % Change     12/31/2021     % Change  

Financial advisors

      2,229       2,182       2.2 %      2,227       0.1 % 

Independent contractors

      92       92       0.0 %      91       1.1 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total financial advisors

      2,321       2,274       2.1 %      2,318       0.1 % 

Locations (7)

      395       389       1.5 %      396       (0.3 %) 

Total client assets

    $ 421,414,000     $ 378,615,000       11.3 %    $ 435,978,000       (3.3 %) 

Fee-based client assets

    $ 157,910,000     $ 137,804,000       14.6 %    $ 162,428,000       (2.8 %) 

Transactional assets

    $ 263,504,000     $ 240,811,000       9.4 %    $ 273,550,000       (3.7 %) 

Client money market and insured product

    $ 28,075,000     $ 23,616,000       18.9 %    $ 27,881,000       0.7 % 

Secured client lending (8)

    $ 4,081,980     $ 3,124,545       30.6 %    $ 3,892,609       4.9 % 

Asset Management Revenue ($ in 000s):

           

Private Client Group (9)

    $ 293,301     $ 233,805       25.4 %    $ 270,685       8.4 % 

Asset Management

      34,635       30,114       15.0 %      34,179       1.3 % 

Third-party Bank Sweep Program

      942       2,102       (55.2 %)      862       9.3 % 

Other (10)

      12,758       12,126       5.2 %      12,912       (1.2 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total asset management revenues

    $ 341,636     $ 278,147       22.8 %    $ 318,638       7.2 % 

Fee-based Assets ($ in millions):

           

Private Client Group (9)

    $ 138,219       119,836       15.3 %    $ 141,456       (2.3 %) 

Asset Management

      34,716       31,115       11.6 %      36,299       (4.4 %) 

Elimination (11)

      (15,025 )      (13,147 )      14.3 %      (15,327 )      (2.0 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fee-based assets

    $ 157,910     $ 137,804       14.6 %    $ 162,428       (2.8 %) 

Third-party Bank Sweep Program

    $ 5,492     $ 6,455       (14.9 %)    $ 6,253       (12.2 %) 

ROA (bps) (12):

           

Private Client Group (9)

      82.9       83.5         82.7    

Asset Management

      39.9       38.7         37.7    

Third-party Bank Sweep Program

      6.2       12.3         5.5    

 

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

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Institutional Group - Summary Results of Operations

 

 

     Three Months Ended  
(Unaudited, 000s)    3/31/2022     3/31/2021     % Change     12/31/2021     % Change  

Revenues:

           

Commissions

    $ 65,133     $ 66,109       (1.5 %)    $ 64,733       0.6 % 

Principal transactions

      113,726       111,407       2.1 %      95,990       18.5 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactional revenues

      178,859       177,516       0.8 %      160,723       11.3 % 

Capital raising

      68,303       195,257       (65.0 %)      155,470       (56.1 %) 

Advisory

      181,396       130,482       39.0 %      310,718       (41.6 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment banking

      249,699       325,739       (23.3 %)      466,188       (46.4 %) 

Other income (13)

      2,805       2,826       (0.7 %)      6,352       (55.8 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

      431,363       506,081       (14.8 %)      633,263       (31.9 %) 

Non-interest expenses:

           

Compensation and benefits

      252,347       301,624       (16.3 %)      367,439       (31.3 %) 

Non-compensation operating expenses

      82,388       87,269       (5.6 %)      90,661       (9.1 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-interest expenses

      334,735       388,893       (13.9 %)      458,100       (26.9 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 96,628     $ 117,188       (17.5 %)    $ 175,163       (44.8 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

As a percentage of net revenues:

           

Compensation and benefits

      58.5 %      59.6 %      (110 )      58.0 %      50  

Non-compensation operating expenses

      19.1 %      17.2 %      190       14.3 %      480  

Income before income taxes

      22.4 %      23.2 %      (80 )      27.7 %      (530 ) 

 

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

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Stifel Bancorp - Financial Information and Credit Metrics

 

 

(Unaudited, 000s)    3/31/2022     3/31/2021     % Change     12/31/2021     % Change  

Stifel Bancorp Financial Information:

           

Total assets

    $ 26,115,139     $ 20,500,414       27.4 %    $ 25,073,605       4.2 % 

Total shareholder’s equity

    $ 1,782,875     $ 1,474,473       20.9 %    $ 1,720,746       3.6 % 

Total loans, net (includes loans held for sale)

    $ 17,908,268     $ 12,422,234       44.2 %    $ 16,835,562       6.4 % 

Commercial and industrial

      7,656,507       4,923,494       55.5 %      7,345,753       4.2 % 

Residential real estate

      6,008,507       4,158,033       44.5 %      5,482,026       9.6 % 

Securities-based loans

      2,954,212       2,089,747       41.4 %      2,880,158       2.6 % 

Commercial real estate

      499,825       374,736       33.4 %      409,847       22.0 % 

Other

      642,497       669,183       (4.0 %)      625,703       2.7 % 

Loans held for sale

      315,427       330,521       (4.6 %)      207,715       51.9 % 

Investment securities

    $ 7,240,149     $ 6,948,574       4.2 %    $ 7,460,111       (2.9 %) 

Available-for-sale securities, at fair value

      1,926,144       2,189,664       (12.0 %)      2,113,893       (8.9 %) 

Held-to-maturity securities, at amortized cost

      5,314,005       4,758,910       11.7 %      5,346,218       (0.6 %) 

Total deposits

    $ 24,195,626     $ 18,715,133       29.3 %    $ 23,280,348       3.9 % 

Demand deposits (interest-bearing)

      23,553,384       18,125,863       29.9 %      22,626,560       4.1 % 

Demand deposits (non interest-bearing)

      618,435       524,338       17.9 %      626,633       (1.3 %) 

Certificates of deposit

      23,807       64,932       (63.3 %)      27,155       (12.3 %) 

Credit Metrics:

           

Allowance for credit losses

    $ 126,802     $ 129,109       (1.8 %)    $ 118,562       6.9 % 

Allowance as a percentage of retained loans

      0.72 %      1.06 %        0.71 %   

Net charge-offs as a percentage of average loans

      0.00 %      0.01 %        0.00 %   

Total nonperforming assets

    $ 17,124     $ 13,756       24.5 %    $ 17,470       (2.0 %) 

Nonperforming assets as a percentage of total assets

      0.07 %      0.07 %        0.07 %   

 

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

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Loans and Lending Commitments - Allowance for Credit Losses

 

 

     March 31, 2022               
(Unaudited, 000s)    Loans and Lending
Commitments		      ACL      ACL%     Q1 Provision  

Commercial and industrial

    $ 7,656,507      $ 54,580        0.7 %    $ 1,051  

Residential real estate

      6,008,507        32,927        0.5 %      4,367  

Securities-based loans

      2,954,212        3,976        0.1 %      (30 ) 

Commercial real estate

      499,825        3,680        0.7 %      (254 ) 

Other

      642,497        9,035        1.4 %      (280 ) 
  

 

 

     

 

 

       

 

 

  

Loans held for investment, gross

      17,761,548        104,198        0.6 %      4,854  

Loans held for sale

      315,427          
  

 

 

          

Total loans, gross

      18,076,975          

Lending commitments

      3,721,000        22,604        0.6 %      3,386  
  

 

 

     

 

 

       

 

 

  

Loans and lending commitments

    $ 21,797,975      $ 126,802        $ 8,240  
  

 

 

     

 

 

       

 

 

  

 

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

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Consolidated Net Interest Income

 

 

    Three Months Ended  
    March 31, 2022     March 31, 2021     December 31, 2021  
(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

   $ 1,340.3     $ 1.1       0.32 %    $ 1,812.2     $ 0.9       0.20 %    $ 1,616.7     $ 1.1       0.26 % 

Financial instruments owned

     1,176.0       5.4       1.84 %      807.8       2.9       1.43 %      1,160.1       6.0       2.08 % 

Margin balances

     1,089.6       6.9       2.54 %      961.6       6.1       2.53 %      1,072.2       6.8       2.53 % 

Investments:

                  

Asset-backed securities

     5,598.6       24.9       1.78 %      4,724.6       21.3       1.80 %      5,583.7       24.1       1.73 % 

Mortgage-backed securities

     1,007.3       4.4       1.75 %      905.9       3.3       1.44 %      1,062.4       4.2       1.59 % 

Corporate fixed income securities

     773.0       5.0       2.57 %      639.8       5.4       3.37 %      794.7       5.8       2.90 % 

Other

     5.3       —         1.84 %      6.4       —         2.06 %      4.3       —         2.09 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total investments

     7,384.2       34.3       1.86 %      6,276.7       30.0       1.91 %      7,445.1       34.1       1.83 % 

Loans:

                  

Commercial and industrial

     7,556.0       62.0       3.28 %      4,573.6       39.5       3.45 %      5,802.4       47.7       3.29 % 

Residential real estate

     5,684.6       35.5       2.50 %      3,994.5       27.0       2.71 %      5,180.9       32.9       2.54 % 

Securities-based loans

     2,910.7       14.4       1.98 %      2,002.3       9.7       1.94 %      2,763.9       13.2       1.91 % 

Commercial real estate

     462.9       3.0       2.63 %      371.0       3.3       3.51 %      372.4       2.7       2.92 % 

Loans held for sale

     221.8       1.3       2.29 %      534.4       2.8       2.09 %      219.5       1.4       2.64 % 

Other

     642.4       5.1       3.16 %      639.9       4.9       3.07 %      692.1       5.5       3.10 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total loans

     17,478.4       121.3       2.78 %      12,115.7       87.2       2.88 %      15,031.2       103.4       2.75 % 

Other interest-bearing assets

     760.3       (3.6 )      (1.88 %)      596.2       0.4       0.32 %      748.8       (6.0 )      (3.18 %) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing assets/ interest income

     29,228.8       165.4       2.26 %      22,570.2       127.5       2.26 %      27,074.1       145.4       2.15 % 

Interest-bearing liabilities:

                  

Senior notes

     1,113.6       11.4       4.10 %      1,112.5       12.1       4.35 %      1,113.3       11.6       4.16 % 

Deposits

     23,129.9       0.9       0.02 %      17,629.6       1.3       0.03 %      21,056.3       0.9       0.02 % 

Federal Home Loan advances

     40.4       —         0.30 %      15.8       —         0.29 %      137.3       0.1       0.31 % 

Other interest-bearing liabilities

     1,559.3       (2.8 )      (0.75 %)      1,209.6       1.0       0.34 %      1,454.9       (5.2 )      (1.44 %) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing liabilities/ interest expense

   $ 25,843.2       9.5       0.15 %    $ 19,967.5       14.4       0.29 %    $ 23,761.8       7.4       0.12 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

Net interest income/margin

     $ 155.9       2.13 %      $ 113.1       2.00 %      $ 138.0       2.04 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

 

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

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Stifel Bancorp Net Interest Income

 

 

    Three Months Ended  
    March 31, 2022     March 31, 2021     December 31, 2021  
(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

   $ 549.5     $ 0.3       0.22 %    $ 962.3     $ 0.3       0.12 %    $ 717.9     $ 0.3       0.17 % 

Investments

     7,384.2       34.3       1.86 %      6,276.7       30.0       1.91 %      7,445.1       34.1       1.83 % 

Loans

     17,478.4       121.3       2.78 %      12,115.7       87.2       2.88 %      15,031.2       103.4       2.75 % 

Other interest-bearing assets

     50.1       0.4       2.87 %      40.7       0.2       2.23 %      51.5       0.4       3.07 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing assets/ interest income

   $ 25,462.2     $ 156.3       2.45 %    $ 19,395.4     $ 117.7       2.43 %    $ 23,245.7     $ 138.2       2.38 % 

Interest-bearing liabilities:

                  

Deposits

   $ 23,129.9     $ 0.9       0.02 %    $ 17,629.6     $ 1.3       0.03 %    $ 21,056.3     $ 0.9       0.02 % 

Federal Home Loan advances

     40.4       —         0.30 %      15.8       —         0.29 %      137.3       0.1       0.31 % 

Other interest-bearing liabilities

     1.1       0.1       13.24 %      1.4       —         7.92 %      1.0       —         16.71 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing liabilities/ interest expense

   $ 23,171.4       1.0       0.02 %    $ 17,646.8       1.3       0.03 %    $ 21,194.6       1.0       0.02 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

Net interest income/margin

     $ 155.3       2.44 %      $ 116.4       2.40 %      $ 137.2       2.36 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

 

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

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GAAP to Core Reconciliation

 

 

    Three Months Ended  
(Unaudited, 000s)   3/31/2022     3/31/2021     Change     12/31/2021     Change  

GAAP net revenues

   $ 1,116,527     $ 1,134,789       $ 1,304,225    

Non-GAAP adjustments

     60       191         —      
 

 

 

    

 

 

      

 

 

    

Non-GAAP net revenues

     1,116,587       1,134,980         1,304,225    

GAAP compensation and benefits expense

     673,691       697,914         757,948    

Merger-related (14)

     (9,311 )      (6,174 )        (8,019 )   
 

 

 

    

 

 

      

 

 

    

Non-GAAP compensation and benefits expense

     664,380       691,740         749,929    

GAAP non-compensation operating expenses

     215,727       208,983         227,615    

Merger-related (14)

     (5,482 )      (9,064 )        (8,215 )   
 

 

 

    

 

 

      

 

 

    

Non-GAAP non-compensation operating expenses

     210,245       199,919         219,400    
 

 

 

    

 

 

      

 

 

    

Total merger-related adjustments

     (14,853 )      (15,429 )        (16,234 )   
 

 

 

    

 

 

      

 

 

    

GAAP provision for income taxes

     53,560       54,877         57,272    

Merger-related and other (14)

     3,495       3,730         2,916    
 

 

 

    

 

 

      

 

 

    

Non-GAAP provision for income taxes

     57,055       58,607         60,188    

Financial ratios:

          

Compensation and benefits

     59.5 %      60.9 %      (140 )      57.5 %      200  

Non-compensation operating expenses

     18.8 %      17.7 %      110       16.8 %      200  

Income before income taxes

     21.7 %      21.4 %      30       25.7 %      (400 ) 

Effective tax rate

     23.6 %      24.1 %      (50 )      18.0 %      560  

 

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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 $55.5 million, $51.7 million, and $56.3 million, as of March 31, 2022 and 2021, and December 31, 2021, respectively.

(5)

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

(6)

Includes capital raising and advisory fee revenues.

(7)

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

(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.

 

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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 first quarter earnings release issued April 27, 2022.

 

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