EX-99.2 3 d443273dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

 

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Fourth Quarter and Full Year 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 | Fourth Quarter and Full Year 2022 Earnings Release    Page 1 of 17

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Consolidated Financial Highlights

 

 

     Three Months Ended     Year Ended  
(Unaudited, 000s, except per share
information)		    12/31/2022      12/31/2021      % Change     9/30/2022      % Change     12/31/2022      12/31/2021      % Change  

Net revenues

    $ 1,121,647      $ 1,304,225        (14.0 %)    $ 1,045,139        7.3 %    $ 4,391,439      $ 4,737,088        (7.3 %) 

Net income

    $ 176,621      $ 261,390        (32.4 %)    $ 151,169        16.8 %    $ 662,155      $ 824,858        (19.7 %) 

Preferred dividends

      9,320        9,320        0.0 %      9,320        0.0 %      37,281        35,587        4.8 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net income available to common shareholders

    $ 167,301      $ 252,070        (33.6 %)    $ 141,849        17.9 %    $ 624,874      $ 789,271        (20.8 %) 

Earnings per diluted common share

    $ 1.51      $ 2.20        (31.4 %)    $ 1.29        17.1 %    $ 5.63      $ 6.96        (19.1 %) 

Earnings per diluted common share available to common shareholders

    $ 1.43      $ 2.12        (32.5 %)    $ 1.21        18.2 %    $ 5.32      $ 6.66        (20.1 %) 

Non-GAAP financial summary (1):

                      

Net revenues

    $ 1,121,643      $ 1,304,225        (14.0 %)    $ 1,045,133        7.3 %    $ 4,391,490      $ 4,737,241        (7.3 %) 

Net income

    $ 194,195      $ 274,708        (29.3 %)    $ 160,076        21.3 %    $ 712,352      $ 875,120        (18.6 %) 

Preferred dividends

      9,320        9,320        0.0 %      9,320        0.0 %      37,281        35,587        4.8 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net income available to common shareholders

    $ 184,875        265,388        (30.3 %)      150,756        22.6 %      675,071        839,533        (19.6 %) 

Earnings per diluted common share

    $ 1.66      $ 2.31        (28.1 %)    $ 1.37        21.2 %    $ 6.06      $ 7.38        (17.9 %) 

Earnings per diluted common share available to common shareholders

    $ 1.58      $ 2.23        (29.1 %)    $ 1.29        22.5 %    $ 5.74      $ 7.08        (18.9 %) 

Weighted average number of common shares outstanding:

 

                   

Basic

      108,344        107,185        1.1 %      108,767        (0.4 %)      108,848        107,536        1.2 % 

Diluted

      117,223        118,959        (1.5 %)      117,218        0.0 %      117,540        118,530        (0.8 %) 

Period end common shares outstanding

      105,348        104,499        0.8 %      106,225        (0.8 %)      105,348        104,499        0.8 % 

Cash dividends declared per common share

    $ 0.30      $ 0.15        100.0 %    $ 0.30        0.0 %    $ 1.20      $ 0.60        100.0 % 

 

Stifel Financial Corp. Quarterly Financial Supplement | Fourth Quarter and Full Year 2022 Earnings Release    Page 2 of 17

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GAAP Consolidated Results of Operations

 

 

     Three Months Ended     Year Ended  
(Unaudited, 000s, except per share
information)		    12/31/2022      12/31/2021      % Change     9/30/2022      % Change     12/31/2022      12/31/2021     % Change  

Revenues:

                     

Commissions

    $ 168,945      $ 211,068        (20.0 %)    $ 159,054        6.2 %    $ 710,589      $ 809,500       (12.2 %) 

Principal transactions

      125,781        144,584        (13.0 %)      118,379        6.3 %      529,033        581,164       (9.0 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Transactional revenues

      294,726        355,652        (17.1 %)      277,433        6.2 %      1,239,622        1,390,664       (10.9 %) 

Capital raising

      56,771        166,591        (65.9 %)      55,122        3.0 %      256,862        709,236       (63.8 %) 

Advisory

      166,935        310,780        (46.3 %)      166,736        0.1 %      714,623        856,145       (16.5 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Investment banking

      223,706        477,371        (53.1 %)      221,858        0.8 %      971,485        1,565,381       (37.9 %) 

Asset management

      289,462        318,638        (9.2 %)      300,557        (3.7 %)      1,262,919        1,206,516       4.7 % 

Other income

      11,862        14,496        (18.2 %)      852        nm       19,685        72,125       (72.7 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Operating revenues

      819,756        1,166,157        (29.7 %)      800,700        2.4 %      3,493,711        4,234,686       (17.5 %) 

Interest revenue

      416,731        145,425        186.6 %      304,195        37.0 %      1,099,115        548,400       100.4 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total revenues

      1,236,487        1,311,582        (5.7 %)      1,104,895        11.9 %      4,592,826        4,783,086       (4.0 %) 

Interest expense

      114,840        7,357        nm       59,756        92.2 %      201,387        45,998       337.8 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net revenues

      1,121,647        1,304,225        (14.0 %)      1,045,139        7.3 %      4,391,439        4,737,088       (7.3 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Non-interest expenses:

                     

Compensation and benefits

      647,962        757,948        (14.5 %)      611,870        5.9 %      2,586,232        2,820,301       (8.3 %) 

Occupancy and equipment rental

      80,740        75,080        7.5 %      77,230        4.5 %      313,247        290,243       7.9 % 

Communication and office supplies

      45,209        41,925        7.8 %      43,825        3.2 %      175,135        165,490       5.8 % 

Commissions and floor brokerage

      13,183        15,257        (13.6 %)      13,576        (2.9 %)      57,752        59,681       (3.2 %) 

Provision for credit losses

      6,028        4,062        48.4 %      6,453        (6.6 %)      33,506        (11,502 )      391.3 % 

Other operating expenses

      94,828        91,291        3.9 %      86,416        9.7 %      340,451        345,794       (1.5 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total non-interest expenses

      887,950        985,563        (9.9 %)      839,370        5.8 %      3,506,323        3,670,007       (4.5 %) 

Income before income taxes

      233,697        318,662        (26.7 %)      205,769        13.6 %      885,116        1,067,081       (17.1 %) 

Provision for income taxes

      57,076        57,272        (0.3 %)      54,600        4.5 %      222,961        242,223       (8.0 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net income

      176,621        261,390        (32.4 %)      151,169        16.8 %      662,155        824,858       (19.7 %) 

Preferred dividends

      9,320        9,320        0.0 %      9,320        0.0 %      37,281        35,587       4.8 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net income available to common shareholders

    $ 167,301      $ 252,070        (33.6 %)    $ 141,849        17.9 %    $ 624,874      $ 789,271       (20.8 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Earnings per common share:

                     

Basic

    $ 1.54      $ 2.35        (34.5 %)    $ 1.30        18.5 %    $ 5.74      $ 7.34       (21.8 %) 

Diluted

    $ 1.43      $ 2.12        (32.5 %)    $ 1.21        18.2 %    $ 5.32      $ 6.66       (20.1 %) 

Weighted average number of common shares outstanding:

 

                  

Basic

      108,344        107,185        1.1 %      108,767        (0.4 %)      108,848        107,536       1.2 % 

Diluted

      117,223        118,959        (1.5 %)      117,218        0.0 %      117,540        118,530       (0.8 %) 

Cash dividends declared per common share

    $ 0.30      $ 0.15        100.0 %    $ 0.30        0.0 %    $ 1.20      $ 0.60       100.0 % 

 

Stifel Financial Corp. Quarterly Financial Supplement | Fourth Quarter and Full Year 2022 Earnings Release    Page 3 of 17

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Non-GAAP Consolidated Results of Operations (1)

 

 

     Three Months Ended     Year Ended  
(Unaudited, 000s, except per share
information)		    12/31/2022      12/31/2021      % Change     9/30/2022      % Change     12/31/2022      12/31/2021     % Change  

Revenues:

                     

Commissions

    $ 168,945      $ 211,068        (20.0 %)    $ 159,054        6.2 %    $ 710,589      $ 809,500       (12.2 %) 

Principal transactions

      125,781        144,584        (13.0 %)      118,379        6.3 %      529,033        581,164       (9.0 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Transactional revenues

      294,726        355,652        (17.1 %)      277,433        6.2 %      1,239,622        1,390,664       (10.9 %) 

Capital raising

      56,771        166,591        (65.9 %)      55,122        3.0 %      256,862        709,236       (63.8 %) 

Advisory

      166,935        310,780        (46.3 %)      166,736        0.1 %      714,623        856,145       (16.5 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Investment banking

      223,706        477,371        (53.1 %)      221,858        0.8 %      971,485        1,565,381       (37.9 %) 

Asset management

      289,462        318,638        (9.2 %)      300,557        (3.7 %)      1,262,919        1,206,516       4.7 % 

Other income

      11,857        14,496        (18.2 %)      852        nm       19,680        72,153       (72.7 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Operating revenues

      819,751        1,166,157        (29.7 %)      800,700        2.4 %      3,493,706        4,234,714       (17.5 %) 

Interest revenue

      416,731        145,425        186.6 %      304,195        37.0 %      1,099,115        548,400       100.4 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total revenues

      1,236,482        1,311,582        (5.7 %)      1,104,895        11.9 %      4,592,821        4,783,114       (4.0 %) 

Interest expense

      114,839        7,357        nm       59,762        92.2 %      201,331        45,873       338.9 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net revenues

      1,121,643        1,304,225        (14.0 %)      1,045,133        7.3 %      4,391,490        4,737,241       (7.3 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Non-interest expenses:

                     

Compensation and benefits

      633,392        749,929        (15.5 %)      605,811        4.6 %      2,547,118        2,794,209       (8.8 %) 

Occupancy and equipment rental

      80,555        75,062        7.3 %      77,142        4.4 %      312,590        290,130       7.7 % 

Communication and office supplies

      45,203        41,925        7.8 %      43,794        3.2 %      175,066        165,414       5.8 % 

Commissions and floor brokerage

      13,183        15,257        (13.6 %)      13,576        (2.9 %)      57,752        59,681       (3.2 %) 

Provision for credit losses

      6,028        4,062        48.4 %      6,453        (6.6 %)      33,506        (11,502 )      391.3 % 

Other operating expenses

      86,088        83,094        3.6 %      80,630        6.8 %      313,243        306,914       2.1 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total non-interest expenses

      864,449        969,329        (10.8 %)      827,406        4.5 %      3,439,275        3,604,846       (4.6 %) 

Income before income taxes

      257,194        334,896        (23.2 %)      217,727        18.1 %      952,215        1,132,395       (15.9 %) 

Provision for income taxes

      62,999        60,188        4.7 %      57,651        9.3 %      239,863        257,275       (6.8 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net income

      194,195        274,708        (29.3 %)      160,076        21.3 %      712,352        875,120       (18.6 %) 

Preferred dividends

      9,320        9,320        0.0 %      9,320        0.0 %      37,281        35,587       4.8 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net income available to common shareholders

    $ 184,875      $ 265,388        (30.3 %)    $ 150,756        22.6 %    $ 675,071      $ 839,533       (19.6 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Earnings per common share:

                     

Basic

    $ 1.71      $ 2.48        (31.0 %)    $ 1.39        23.0 %    $ 6.20      $ 7.81       (20.6 %) 

Diluted

    $ 1.58      $ 2.23        (29.1 %)    $ 1.29        22.5 %    $ 5.74      $ 7.08       (18.9 %) 

Weighted average number of common shares outstanding:

 

                  

Basic

      108,344        107,185        1.1 %      108,767        (0.4 %)      108,848        107,536       1.2 % 

Diluted

      117,223        118,959        (1.5 %)      117,218        0.0 %      117,540        118,530       (0.8 %) 

Cash dividends declared per common share

    $ 0.30      $ 0.15        100.0 %    $ 0.30        0.0 %    $ 1.20      $ 0.60       100.0 % 

 

Stifel Financial Corp. Quarterly Financial Supplement | Fourth Quarter and Full Year 2022 Earnings Release    Page 4 of 17

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Consolidated Financial Summary

 

 

     Three Months Ended     Year Ended  
(Unaudited, 000s)    12/31/2022     12/31/2021     % Change     9/30/2022     % Change     12/31/2022     12/31/2021     % Change  

Net revenues:

                 

Global Wealth Management

    $ 744,341     $ 674,242       10.4 %    $ 701,820       6.1 %    $ 2,825,866     $ 2,598,837       8.7 % 

Institutional Group

      353,882       633,263       (44.1 %)      339,408       4.3 %      1,536,017       2,152,439       (28.6 %) 

Other

      23,424       (3,280 )      814.1 %      3,911       498.9 %      29,556       (14,188 )      308.3 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenues

    $ 1,121,647     $ 1,304,225       (14.0 %)    $ 1,045,139       7.3 %    $ 4,391,439     $ 4,737,088       (7.3 %) 

Operating expenses:

                 

Global Wealth Management

    $ 427,270     $ 441,944       (3.3 %)    $ 421,885       1.3 %    $ 1,758,295     $ 1,683,884       4.4 % 

Institutional Group

      309,370       458,100       (32.5 %)      299,408       3.3 %      1,281,885       1,593,502       (19.6 %) 

Other

      151,310       85,519       76.9 %      118,077       28.1 %      466,143       392,621       18.7 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

    $ 887,950     $ 985,563       (9.9 %)    $ 839,370       5.8 %    $ 3,506,323     $ 3,670,007       (4.5 %) 

Operating contribution:

                 

Global Wealth Management

    $ 317,071     $ 232,298       36.5 %    $ 279,935       13.3 %    $ 1,067,571     $ 914,953       16.7 % 

Institutional Group

      44,512       175,163       (74.6 %)      40,000       11.3 %      254,132       558,937       (54.5 %) 

Other

      (127,886 )      (88,799 )      44.0 %      (114,166 )      12.0 %      (436,587 )      (406,809 )      7.3 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 233,697     $ 318,662       (26.7 %)    $ 205,769       13.6 %    $ 885,116     $ 1,067,081       (17.1 %) 

Financial ratios:

                 

Compensation and benefits

      57.8 %      58.1 %      (30 )      58.5 %      (70 )      58.9 %      59.5 %      (60 ) 

Non-compensation operating expenses

      21.4 %      17.5 %      390       21.8 %      (40 )      20.9 %      18.0 %      290  

Income before income taxes

      20.8 %      24.4 %      (360 )      19.7 %      110       20.2 %      22.5 %      (230 ) 

Effective tax rate

      24.4 %      18.0 %      640       26.5 %      (210 )      25.2 %      22.7 %      250  

 

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Consolidated Financial Information and Metrics

 

 

     As of and for the Three Months Ended  
(Unaudited, 000s, except per share data)    12/31/2022     12/31/2021     % Change     9/30/2022     % Change  

Financial Information:

           

Total assets

    $ 37,196,124     $ 34,049,715       9.2 %    $ 37,612,063       (1.1 %) 

Total shareholders’ equity

    $ 5,328,471     $ 5,034,959       5.8 %    $ 5,227,350       1.9 % 

Total common equity

    $ 4,643,471     $ 4,349,959       6.7 %    $ 4,542,350       2.2 % 

Goodwill and intangible assets

    $ (1,457,137 )    $ (1,455,049 )      0.1 %    $ (1,454,532 )      0.2 % 

DTL on goodwill and intangible assets

    $ 61,225     $ 58,126       5.3 %    $ 60,034       2.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Tangible common equity

    $ 3,247,559     $ 2,953,036       10.0 %    $ 3,147,852       3.2 % 

Preferred equity

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

Financial Metrics:

           

Book value per common share (2)

    $ 44.08     $ 41.63       5.9 %    $ 42.76       3.1 % 

Tangible book value per common share (2)

    $ 30.83     $ 28.26       9.1 %    $ 29.63       4.0 % 

Return on common equity (3)

      14.5 %      23.7 %        12.5 %   

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

      16.0 %      25.0 %        13.3 %   

Return on tangible common equity (4)

      20.7 %      34.7 %        18.0 %   

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

      22.9 %      36.6 %        19.2 %   

Pre-tax margin on net revenues

      20.8 %      24.4 %        19.7 %   

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

      22.9 %      25.7 %        20.8 %   

Effective tax rate

      24.4 %      18.0 %        26.5 %   

Non-GAAP effective tax rate (1)

      24.5 %      18.0 %        26.5 %   

 

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Regulatory Capital

 

 

     As of and for the Three Months Ended  
(Unaudited, 000s)    12/31/2022     12/31/2021     % Change     9/30/2022     % Change  

SF Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 3,363,137     $ 2,938,954       14.4 %    $ 3,279,013       2.6 % 

Tier 1 capital

    $ 4,048,137     $ 3,623,954       11.7 %    $ 3,964,013       2.1 % 

Risk-weighted assets

    $ 23,026,999     $ 19,366,319       18.9 %    $ 23,300,119       (1.2 %) 

Common equity tier 1 capital ratio

      14.6 %      15.2 %        14.1 %   

Tier 1 risk based capital ratio

      17.6 %      18.7 %        17.0 %   

Tier 1 leverage capital ratio

      11.1 %      11.7 %        11.1 %   

Stifel Bank & Trust Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 1,620,995     $ 1,274,994       27.1 %    $ 1,655,760       (2.1 %) 

Tier 1 capital

    $ 1,620,995     $ 1,274,994       27.1 %    $ 1,655,760       (2.1 %) 

Risk-weighted assets

    $ 14,681,096     $ 12,001,325       22.3 %    $ 15,406,324       (4.7 %) 

Common equity tier 1 capital ratio

      11.0 %      10.6 %        10.8 %   

Tier 1 risk based capital ratio

      11.0 %      10.6 %        10.8 %   

Tier 1 leverage capital ratio

      7.2 %      7.1 %        7.3 %   

Stifel Bank Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 468,437     $ 302,231       55.0 %    $ 377,572       24.1 % 

Tier 1 capital

    $ 468,437     $ 302,231       55.0 %    $ 377,572       24.1 % 

Risk-weighted assets

    $ 4,229,316     $ 2,197,216       92.5 %    $ 3,591,228       17.8 % 

Common equity tier 1 capital ratio

      11.1 %      13.8 %        10.5 %   

Tier 1 risk based capital ratio

      11.1 %      13.8 %        10.5 %   

Tier 1 leverage capital ratio

      7.1 %      7.1 %        7.3 %   

Stifel Net Capital (5):

           

Net capital

    $ 537,100     $ 614,200       (12.6 %)    $ 642,700       (16.4 %) 

Excess net capital

    $ 514,700     $ 584,800       (12.0 %)    $ 614,300       (16.2 %) 

 

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Global Wealth Management - Summary Results of Operations

 

 

     Three Months Ended     Year Ended  
(Unaudited, 000s)    12/31/2022     12/31/2021     % Change     9/30/2022     % Change     12/31/2022     12/31/2021     % Change  

Revenues:

                 

Commissions

    $ 112,644     $ 146,335       (23.0 %)    $ 108,214       4.1 %    $ 473,638     $ 567,491       (16.5 %) 

Principal transactions

      52,913       48,592       8.9 %      48,351       9.4 %      195,274       207,474       (5.9 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactional revenues

      165,557       194,927       (15.1 %)      156,565       5.7 %      668,912       774,965       (13.7 %) 

Asset management

      289,445       318,612       (9.2 %)      300,540       (3.7 %)      1,262,841       1,206,406       4.7 % 

Net interest

      284,998       138,891       105.2 %      242,194       17.7 %      879,780       511,693       71.9 % 

Investment banking (6)

      4,814       11,183       (57.0 %)      4,498       7.0 %      19,515       48,210       (59.5 %) 

Other income

      (473 )      10,629       (104.5 %)      (1,977 )      76.1 %      (5,182 )      57,563       (109.0 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

      744,341       674,242       10.4 %      701,820       6.1 %      2,825,866       2,598,837       8.7 % 

Non-interest expenses:

                 

Compensation and benefits

      328,099       349,428       (6.1 %)      326,116       0.6 %      1,368,576       1,370,308       (0.1 %) 

Non-compensation operating expenses

      99,171       92,516       7.2 %      95,769       3.6 %      389,719       313,576       24.3 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-interest expenses

      427,270       441,944       (3.3 %)      421,885       1.3 %      1,758,295       1,683,884       4.4 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 317,071     $ 232,298       36.5 %    $ 279,935       13.3 %    $ 1,067,571     $ 914,953       16.7 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

As a percentage of net revenues:

                 

Compensation and benefits

      44.1 %      51.8 %      (770 )      46.5 %      (240 )      48.4 %      52.7 %      (430 ) 

Non-compensation operating expenses

      13.3 %      13.7 %      (40 )      13.6 %      (30 )      13.8 %      12.1 %      170  

Income before income taxes

      42.6 %      34.5 %      810       39.9 %      270       37.8 %      35.2 %      260  

 

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Global Wealth Management - Statistical Information

 

 

     As of and for the Three Months Ended  
(Unaudited, 000s, except financial advisors and locations)    12/31/2022     12/31/2021     % Change     9/30/2022     % Change  

Financial advisors

      2,242       2,227       0.7 %      2,235       0.3 % 

Independent contractors

      102       91       12.1 %      102       0.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total financial advisors

      2,344       2,318       1.1 %      2,337       0.3 % 

Locations

      398       396       0.5 %      398       0.0 % 

Total client assets

    $ 389,818,000     $ 435,978,000       (10.6 %)    $ 364,824,000       6.9 % 

Fee-based client assets

    $ 144,952,000     $ 162,428,000       (10.8 %)    $ 135,521,000       7.0 % 

Transactional assets

    $ 244,866,000     $ 273,550,000       (10.5 %)    $ 229,303,000       6.8 % 

Client money market and insured product (7)

    $ 27,509,000     $ 28,267,000       (2.7 %)    $ 26,082,000       5.5 % 

Secured client lending (8)

    $ 3,576,415     $ 3,892,609       (8.1 %)    $ 3,841,430       (6.9 %) 

Asset Management Revenue (000s):

           

Private Client Group (9)

    $ 240,446     $ 270,685       (11.2 %)    $ 252,487       (4.8 %) 

Asset Management

      30,690       34,179       (10.2 %)      30,648       0.1 % 

Third-party Bank Sweep Program

      5,522       862       540.6 %      3,851       43.4 % 

Other (10)

      12,804       12,912       (0.8 %)      13,571       (5.7 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total asset management revenues

    $ 289,462     $ 318,638       (9.2 %)    $ 300,557       (3.7 %) 

Fee-based Assets (millions):

           

Private Client Group (9)

    $ 126,043       141,456       (10.9 %)    $ 118,850       6.1 % 

Asset Management

      32,233       36,299       (11.2 %)      30,095       7.1 % 

Elimination (11)

      (13,324 )      (15,327 )      (13.1 %)      (13,424 )      (0.7 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fee-based assets

    $ 144,952     $ 162,428       (10.8 %)    $ 135,521       7.0 % 

Third-party Bank Sweep Program

    $ 1,984     $ 6,253       (68.3 %)    $ 1,114       78.1 % 

ROA (bps) (12):

           

Private Client Group (9)

      80.9       82.7         81.6    

Asset Management

      38.1       37.7         40.7    

Third-party Bank Sweep Program

      137.2       5.5         104.3    

 

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Institutional Group - Summary Results of Operations

 

 

     Three Months Ended     Year Ended  
(Unaudited, 000s)    12/31/2022     12/31/2021     % Change     9/30/2022     % Change     12/31/2022     12/31/2021     % Change  

Revenues:

                 

Commissions

    $ 56,301     $ 64,733       (13.0 %)    $ 50,840       10.7 %    $ 236,951     $ 242,009       (2.1 %) 

Principal transactions

      72,869       95,990       (24.1 %)      70,027       4.1 %      333,759       373,689       (10.7 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactional revenues

      129,170       160,723       (19.6 %)      120,867       6.9 %      570,710       615,698       (7.3 %) 

Capital raising

      51,956       155,470       (66.6 %)      50,625       2.6 %      237,347       661,088       (64.1 %) 

Advisory

      166,935       310,718       (46.3 %)      166,736       0.1 %      714,623       856,083       (16.5 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment banking

      218,891       466,188       (53.0 %)      217,361       0.7 %      951,970       1,517,171       (37.3 %) 

Other income (13)

      5,821       6,352       (8.4 %)      1,180       393.3 %      13,337       19,570       (31.8 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

      353,882       633,263       (44.1 %)      339,408       4.3 %      1,536,017       2,152,439       (28.6 %) 

Non-interest expenses:

                 

Compensation and benefits

      220,730       367,439       (39.9 %)      211,818       4.2 %      929,606       1,251,595       (25.7 %) 

Non-compensation operating expenses

      88,640       90,661       (2.2 %)      87,590       1.2 %      352,279       341,907       3.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-interest expenses

      309,370       458,100       (32.5 %)      299,408       3.3 %      1,281,885       1,593,502       (19.6 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 44,512     $ 175,163       (74.6 %)    $ 40,000       11.3 %    $ 254,132     $ 558,937       (54.5 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

As a percentage of net revenues:

                 

Compensation and benefits

      62.4 %      58.0 %      440       62.4 %      0       60.5 %      58.1 %      240  

Non-compensation operating expenses

      25.0 %      14.3 %      1,070       25.8 %      (80 )      23.0 %      15.9 %      710  

Income before income taxes

      12.6 %      27.7 %      (1,510 )      11.8 %      80       16.5 %      26.0 %      (950 ) 

 

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Stifel Bancorp - Financial Information and Credit Metrics

 

 

(Unaudited, 000s)    12/31/2022     12/31/2021     % Change     9/30/2022     % Change  

Stifel Bancorp Financial Information:

           

Total assets

    $ 29,318,421     $ 25,073,605       16.9 %    $ 29,307,718       0.0 % 

Total shareholder’s equity

    $ 2,071,882     $ 1,720,746       20.4 %    $ 1,995,933       3.8 % 

Total loans, net (includes loans held for sale)

    $ 20,622,004     $ 16,835,562       22.5 %    $ 20,910,895       (1.4 %) 

Residential real estate

      7,371,671       5,482,026       34.5 %      7,048,762       4.6 % 

Commercial and industrial

      4,897,176       4,208,950       16.4 %      5,040,682       (2.8 %) 

Fund banking

      4,182,641       3,136,803       33.3 %      4,353,875       (3.9 %) 

Securities-based loans

      2,724,551       2,880,158       (5.4 %)      2,785,679       (2.2 %) 

Commercial real estate

      675,599       409,847       64.8 %      872,010       (22.5 %) 

Construction and land

      593,191       511,084       16.1 %      564,581       5.1 % 

Other

      157,729       114,619       37.6 %      153,661       2.6 % 

Loans held for sale

      156,912       207,715       (24.5 %)      234,927       (33.2 %) 

Investment securities

    $ 7,624,448     $ 7,460,111       2.2 %    $ 7,650,130       (0.3 %) 

Available-for-sale securities, at fair value

      1,636,041       2,113,893       (22.6 %)      1,660,847       (1.5 %) 

Held-to-maturity securities, at amortized cost

      5,988,407       5,346,218       12.0 %      5,989,283       (0.0 %) 

Unrealized gains/(losses) on available-for-sale securities

      (227,178 )      9,380       nm       (247,188 )      (8.1 %) 

Total deposits

    $ 27,117,111     $ 23,280,348       16.5 %    $ 27,190,619       (0.3 %) 

Demand deposits (interest-bearing)

      26,805,073       22,626,560       18.5 %      26,783,010       0.1 % 

Demand deposits (non-interest-bearing)

      305,138       626,633       (51.3 %)      397,573       (23.2 %) 

Certificates of deposit

      6,900       27,155       (74.6 %)      10,036       (31.2 %) 

Credit Metrics:

           

Allowance for credit losses

    $ 147,853     $ 118,562       24.7 %    $ 141,998       4.1 % 

Allowance as a percentage of retained loans

      0.72 %      0.71 %        0.68 %   

Net charge-offs as a percentage of average loans

      0.00 %      0.00 %        0.02 %   

Total nonperforming assets

    $ 10,374     $ 17,470       (40.6 %)    $ 11,291       (8.1 %) 

Nonperforming assets as a percentage of total assets

      0.04 %      0.07 %        0.04 %   

 

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Loans and Lending Commitments - Allowance for Credit Losses

 

 

     December 31, 2022               
     Loans and Lending                      
(Unaudited, 000s)    Commitments      ACL      ACL %     Q4 Provision  

Residential real estate

    $ 7,371,671      $ 20,441        0.28 %    $ 2,976  

Commercial and industrial

      4,897,176        54,143        1.11 %      2,241  

Fund banking

      4,182,641        11,711        0.28 %      (460 ) 

Securities-based loans

      2,724,551        3,157        0.12 %      (160 ) 

Commercial real estate

      675,599        12,897        1.91 %      934  

Construction and land

      593,191        8,568        1.44 %      1,038  

Other

      157,729        736        0.47 %      233  
  

 

 

     

 

 

       

 

 

  

Loans held for investment, gross

      20,602,558        111,653        0.54 %      6,802  

Loans held for sale

      156,912          
  

 

 

          

Total loans, gross

      20,759,470          

Lending-related commitments (unfunded)

      6,146,000        36,200        0.59 %      (774 ) 
  

 

 

     

 

 

       

 

 

  

Loans and lending-related commitments

    $ 26,905,470      $ 147,853        $ 6,028  
  

 

 

     

 

 

       

 

 

  

 

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Consolidated Net Interest Income

 

 

    Three Months Ended  
    December 31, 2022     December 31, 2021     September 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

   $ 1,641.8     $ 18.3       4.45 %    $ 1,616.7     $ 1.1       0.26 %    $ 1,302.9     $ 7.7       2.38 % 

Financial instruments owned

     906.2       7.5       3.31 %      1,160.1       6.0       2.08 %      982.7       3.6       1.45 % 

Margin balances

     985.2       15.6       6.33 %      1,072.2       6.8       2.53 %      1,062.3       12.5       4.71 % 

Investments:

                  

Asset-backed securities

     6,216.5       86.1       5.54 %      5,583.7       24.1       1.73 %      6,178.0       61.0       3.95 % 

Mortgage-backed securities

     1,003.6       5.4       2.15 %      1,062.4       4.2       1.59 %      1,032.7       5.3       2.08 % 

Corporate fixed income securities

     646.4       4.5       2.79 %      794.7       5.8       2.90 %      722.7       5.1       2.81 % 

Other

     4.5       —         2.18 %      4.3       —         2.09 %      4.6       —         1.77 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total investments

     7,871.0       96.0       4.88 %      7,445.1       34.1       1.83 %      7,938.0       71.4       3.60 % 

Loans:

                  

Residential real estate

     7,240.6       55.7       3.08 %      5,180.9       32.9       2.54 %      6,824.3       44.8       2.63 % 

Commercial and industrial

     4,997.7       84.4       6.75 %      3,941.2       34.3       3.48 %      4,947.8       65.2       5.27 % 

Fund banking

     4,348.7       65.3       6.01 %      1,861.2       13.5       2.91 %      4,090.2       47.6       4.66 % 

Securities-based loans

     2,735.5       40.0       5.85 %      2,763.9       13.2       1.91 %      2,901.9       31.7       4.36 % 

Commercial real estate

     805.3       12.5       6.22 %      372.4       2.6       2.83 %      733.4       8.6       4.68 % 

Construction and land

     583.7       9.9       6.77 %      572.6       4.6       3.19 %      493.3       6.4       5.21 % 

Loans held for sale

     168.0       2.1       5.09 %      219.5       1.4       2.64 %      231.2       2.1       3.57 % 

Other

     147.6       2.3       6.46 %      119.5       0.9       2.64 %      154.0       2.0       5.06 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total loans

     21,027.1       272.2       5.18 %      15,031.2       103.4       2.75 %      20,376.1       208.4       4.09 % 

Other interest-bearing assets

     770.6       7.1       3.69 %      748.8       (6.0 )      (3.18 %)      889.5       0.6       0.27 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing assets/interest income

     33,201.9       416.7       5.02 %      27,074.1       145.4       2.15 %      32,551.5       304.2       3.74 % 

Interest-bearing liabilities:

                  

Senior notes

     1,114.4       10.5       3.77 %      1,113.3       11.6       4.16 %      1,114.1       11.2       4.03 % 

Deposits

     27,267.0       98.7       1.45 %      21,056.3       0.9       0.02 %      25,998.2       43.4       0.67 % 

Federal Home Loan advances

     —         —         0.00 %      137.3       0.1       0.31 %      542.2       3.3       2.41 % 

Other interest-bearing liabilities

     1,303.0       5.6       1.72 %      1,454.9       (5.2 )      (1.44 %)      1,416.4       1.9       0.54 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing liabilities/interest expense

   $ 29,684.4       114.8       1.55 %    $ 23,761.8       7.4       0.12 %    $ 29,070.9       59.8       0.82 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

Net interest income/margin

     $ 301.9       3.64 %      $ 138.0       2.04 %      $ 244.4       3.00 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

 

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Stifel Bancorp Net Interest Income

 

 

    Three Months Ended  
    December 31, 2022     December 31, 2021     September 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

   $ 889.4     $ 9.4       4.24 %    $ 717.9     $ 0.3       0.17 %    $ 520.5     $ 3.2       2.45 % 

Investments

     7,871.0       96.0       4.88 %      7,445.1       34.1       1.83 %      7,938.0       71.4       3.60 % 

Loans

     21,027.1       272.2       5.18 %      15,031.2       103.4       2.75 %      20,376.1       208.4       4.09 % 

Other interest-bearing assets

     55.1       0.7       4.56 %      51.5       0.4       3.07 %      75.8       0.8       4.37 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing assets/interest income

   $ 29,842.6     $ 378.3       5.07 %    $ 23,245.7     $ 138.2       2.38 %    $ 28,910.4     $ 283.8       3.93 % 

Interest-bearing liabilities:

                  

Deposits

   $ 27,267.0     $ 98.7       1.45 %    $ 21,056.3     $ 0.9       0.02 %    $ 25,998.2     $ 43.4       0.67 % 

Federal Home Loan advances

     —         —         0.00 %      137.3       0.1       0.31 %      542.2       3.3       2.41 % 

Other interest-bearing liabilities

     0.9       0.1       15.64 %      1.0       —         16.71 %      1.0       —         14.26 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing liabilities/interest expense

   $ 27,267.9       98.8       1.45 %    $ 21,194.6       1.0       0.02 %    $ 26,541.4       46.7       0.70 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

Net interest income/margin

     $ 279.5       3.75 %      $ 137.2       2.36 %      $ 237.1       3.28 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

 

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GAAP to Core Reconciliation

 

 

     Three Months Ended     Year Ended  
(Unaudited, 000s)    12/31/2022     12/31/2021     Change     9/30/2022     Change     12/31/2022     12/31/2021     Change  

GAAP net revenues

    $ 1,121,647     $ 1,304,225       $ 1,045,139       $ 4,391,439     $ 4,737,088    

Non-GAAP adjustments

      (4 )      —           (6 )        51       153    
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP net revenues

      1,121,643       1,304,225         1,045,133         4,391,490       4,737,241    

GAAP compensation and benefits expense

      647,962       757,948         611,870         2,586,232       2,820,301    

Merger-related (14)

      (14,570 )      (8,019 )        (6,059 )        (39,114 )      (26,092 )   
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP compensation and benefits expense

      633,392       749,929         605,811         2,547,118       2,794,209    

GAAP non-compensation operating expenses

      239,988       227,615         227,500         920,091       849,706    

Merger-related (14)

      (8,931 )      (8,215 )        (5,905 )        (27,934 )      (39,069 )   
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP non-compensation operating expenses

      231,057       219,400         221,595         892,157       810,637    
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Total merger-related adjustments

      (23,497 )      (16,234 )        (11,958 )        (67,099 )      (65,314 )   
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

GAAP provision for income taxes

      57,076       57,272         54,600         222,961       242,223    

Merger-related and other (14)

      5,923       2,916         3,051         16,902       15,052    
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP provision for income taxes

      62,999       60,188         57,651         239,863       257,275    

Financial ratios:

                 

Compensation and benefits

      56.5 %      57.5 %      (100 )      58.0 %      (150 )      58.0 %      59.0 %      (100 ) 

Non-compensation operating expenses

      20.6 %      16.8 %      380       21.2 %      (60 )      20.3 %      17.1 %      320  

Income before income taxes

      22.9 %      25.7 %      (280 )      20.8 %      210       21.7 %      23.9 %      (220 ) 

Effective tax rate

      24.5 %      18.0 %      650       26.5 %      (200 )      25.2 %      22.7 %      250  

 

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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 $60.4 million, $56.3 million, and $59.2 million, as of December 31, 2022 and 2021, and September 30, 2022, respectively.

(5)

Regulatory capital amounts and ratios are estimates as of the date of the Company’s earnings release, January 25, 2023.

(6)

Includes capital raising and advisory revenues.

(7)

Includes Stifel Smart Rate Program balances. Historical periods have been restated to conform to the current 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 fourth quarter earnings release issued January 25, 2023.

 

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