EX-99.2 3 d521864dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

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Second Quarter 2023 Earnings Results

 

 

Quarterly Financial Supplement    Page  

Consolidated Financial Highlights

      2  

GAAP Consolidated Results of Operations

      3  

Non-GAAP Consolidated Results of Operations

      4  

Consolidated Financial Summary

      5  

Consolidated Financial Information and Metrics

      6  

Regulatory Capital

      7  

Global Wealth Management - Summary Results of Operations

      8  

Global Wealth Management - Statistical Information

      9  

Institutional Group - Summary Results of Operations

      10  

Stifel Bancorp - Financial Information and Credit Metrics

      11  

Stifel Bancorp - Loan and Investment Portfolio

      12  

Loans and Lending Commitments - Allowance for Credit Losses

      13  

Consolidated Net Interest Income

      14  

Stifel Bancorp Net Interest Income

      15  

GAAP to Core Reconciliation

      16  

Footnotes

      17  

Disclaimer and Legal Notice

      18  

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Second Quarter 2023 Earnings Release    Page 1 of 18

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Consolidated Financial Highlights

 

 

     Three Months Ended     Six Months Ended  
(Unaudited, 000s, except per share
information)		    6/30/2023      6/30/2022      % Change     3/31/2023      % Change     6/30/2023      6/30/2022      % Change  

Net revenues

    $ 1,050,721      $ 1,108,126        (5.2 %)    $ 1,106,793        (5.1 %)    $ 2,157,514      $ 2,224,653        (3.0 %) 

Net income

    $ 134,352      $ 160,816        (16.5 %)    $ 157,539        (14.7 %)    $ 291,891      $ 334,365        (12.7 %) 

Preferred dividends

      9,320        9,321        (0.0 %)      9,320        0.0 %      18,640        18,641        (0.0 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net income available to common shareholders

    $ 125,032      $ 151,495        (17.5 %)    $ 148,219        (15.6 %)    $ 273,251      $ 315,724        (13.5 %) 

Earnings per diluted common share

    $ 1.18      $ 1.37        (13.9 %)    $ 1.36        (13.2 %)    $ 2.55      $ 2.84        (10.2 %) 

Earnings per diluted common share available to common shareholders

    $ 1.10      $ 1.29        (14.7 %)    $ 1.28        (14.1 %)    $ 2.38      $ 2.68        (11.2 %) 

Non-GAAP financial summary (1):

                      

Net revenues

    $ 1,050,721      $ 1,108,127        (5.2 %)    $ 1,106,790        (5.1 %)    $ 2,157,511      $ 2,224,714        (3.0 %) 

Net income

    $ 145,576      $ 173,174        (15.9 %)    $ 170,588        (14.7 %)    $ 316,164      $ 358,081        (11.7 %) 

Preferred dividends

      9,320        9,321        (0.0 %)      9,320        0.0 %      18,640        18,641        (0.0 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net income available to common shareholders

    $ 136,256        163,853        (16.8 %)      161,268        (15.5 %)      297,524        339,440        (12.3 %) 

Earnings per diluted common share

    $ 1.28      $ 1.48        (13.5 %)    $ 1.48        (13.5 %)    $ 2.76      $ 3.04        (9.2 %) 

Earnings per diluted common share available to common shareholders

    $ 1.20      $ 1.40        (14.3 %)    $ 1.40        (14.3 %)    $ 2.59      $ 2.88        (10.1 %) 

Weighted average number of common shares outstanding:

 

           

Basic

      107,944        109,083        (1.0 %)      108,754        (0.7 %)      108,360        109,144        (0.7 %) 

Diluted

      113,864        117,400        (3.0 %)      115,390        (1.3 %)      114,658        117,838        (2.7 %) 

Period end common shares outstanding

      104,889        106,166        (1.2 %)      106,172        (1.2 %)      104,889        106,166        (1.2 %) 

Cash dividends declared per common share

    $ 0.36      $ 0.30        20.0 %    $ 0.36        0.0 %    $ 0.72      $ 0.60        20.0 % 

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Second Quarter 2023 Earnings Release    Page 2 of 18

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GAAP Consolidated Results of Operations

 

 

     Three Months Ended     Six Months Ended  
(Unaudited, 000s, except per share
information)		    6/30/2023      6/30/2022     % Change     3/31/2023     % Change     6/30/2023     6/30/2022      % Change  

Revenues:

                   

Commissions

    $ 165,358      $ 186,681       (11.4 %)    $ 169,550       (2.5 %)    $ 334,908     $ 382,590        (12.5 %) 

Principal transactions

      105,700        125,603       (15.8 %)      115,522       (8.5 %)      221,222       284,873        (22.3 %) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Transactional revenues

      271,058        312,284       (13.2 %)      285,072       (4.9 %)      556,130       667,463        (16.7 %) 

Capital raising

      78,950        71,519       10.4 %      60,816       29.8 %      139,766       144,969        (3.6 %) 

Advisory

      87,875        199,556       (56.0 %)      151,063       (41.8 %)      238,938       380,952        (37.3 %) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Investment banking

      166,825        271,075       (38.5 %)      211,879       (21.3 %)      378,704       525,921        (28.0 %) 

Asset management

      320,264        331,264       (3.3 %)      315,569       1.5 %      635,833       672,900        (5.5 %) 

Other income

      894        (1,917 )      146.6 %      (2,293 )      139.0 %      (1,399 )      6,971        (120.1 %) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Operating revenues

      759,041        912,706       (16.8 %)      810,227       (6.3 %)      1,569,268       1,873,255        (16.2 %) 

Interest revenue

      482,770        212,754       126.9 %      451,564       6.9 %      934,334       378,189        147.1 % 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total revenues

      1,241,811        1,125,460       10.3 %      1,261,791       (1.6 %)      2,503,602       2,251,444        11.2 % 

Interest expense

      191,090        17,334       nm       154,998       23.3 %      346,088       26,791        nm  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net revenues

      1,050,721        1,108,126       (5.2 %)      1,106,793       (5.1 %)      2,157,514       2,224,653        (3.0 %) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Non-interest expenses:

                   

Compensation and benefits

      615,667        652,709       (5.7 %)      651,190       (5.5 %)      1,266,857       1,326,400        (4.5 %) 

Occupancy and equipment rental

      84,604        78,251       8.1 %      82,140       3.0 %      166,744       155,277        7.4 % 

Communication and office supplies

      44,969        43,645       3.0 %      46,136       (2.5 %)      91,105       86,101        5.8 % 

Commissions and floor brokerage

      14,112        15,106       (6.6 %)      14,440       (2.3 %)      28,552       30,993        (7.9 %) 

Provision for credit losses

      7,824        12,785       (38.8 %)      4,920       59.0 %      12,744       21,025        (39.4 %) 

Other operating expenses

      102,160        87,089       17.3 %      98,084       4.2 %      200,244       159,207        25.8 % 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total non-interest expenses

      869,336        889,585       (2.3 %)      896,910       (3.1 %)      1,766,246       1,779,003        (0.7 %) 

Income before income taxes

      181,385        218,541       (17.0 %)      209,883       (13.6 %)      391,268       445,650        (12.2 %) 

Provision for income taxes

      47,033        57,725       (18.5 %)      52,344       (10.1 %)      99,377       111,285        (10.7 %) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net income

      134,352        160,816       (16.5 %)      157,539       (14.7 %)      291,891       334,365        (12.7 %) 

Preferred dividends

      9,320        9,321       (0.0 %)      9,320       0.0 %      18,640       18,641        (0.0 %) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net income available to common shareholders

    $ 125,032      $ 151,495       (17.5 %)    $ 148,219       (15.6 %)    $ 273,251     $ 315,724        (13.5 %) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Earnings per common share:

                   

Basic

    $ 1.16      $ 1.39       (16.5 %)    $ 1.36       (14.7 %)    $ 2.52     $ 2.89        (12.8 %) 

Diluted

    $ 1.10      $ 1.29       (14.7 %)    $ 1.28       (14.1 %)    $ 2.38     $ 2.68        (11.2 %) 

Weighted average number of common shares outstanding:

 

         

Basic

      107,944        109,083       (1.0 %)      108,754       (0.7 %)      108,360       109,144        (0.7 %) 

Diluted

      113,864        117,400       (3.0 %)      115,390       (1.3 %)      114,658       117,838        (2.7 %) 

Cash dividends declared per common share

    $ 0.36      $ 0.30       20.0 %    $ 0.36       0.0 %    $ 0.72     $ 0.60        20.0 % 

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Second Quarter 2023 Earnings Release    Page 3 of 18

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Non-GAAP Consolidated Results of Operations (1)

 

 

     Three Months Ended     Six Months Ended  
(Unaudited, 000s, except per share
information)		    6/30/2023      6/30/2022     % Change     3/31/2023     % Change     6/30/2023     6/30/2022      % Change  

Revenues:

                   

Commissions

    $ 165,358      $ 186,681       (11.4 %)    $ 169,550       (2.5 %)    $ 334,908     $ 382,590        (12.5 %) 

Principal transactions

      105,700        125,603       (15.8 %)      115,522       (8.5 %)      221,222       284,873        (22.3 %) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Transactional revenues

      271,058        312,284       (13.2 %)      285,072       (4.9 %)      556,130       667,463        (16.7 %) 

Capital raising

      78,950        71,519       10.4 %      60,816       29.8 %      139,766       144,969        (3.6 %) 

Advisory

      87,875        199,556       (56.0 %)      151,063       (41.8 %)      238,938       380,952        (37.3 %) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Investment banking

      166,825        271,075       (38.5 %)      211,879       (21.3 %)      378,704       525,921        (28.0 %) 

Asset management

      320,264        331,264       (3.3 %)      315,569       1.5 %      635,833       672,900        (5.5 %) 

Other income

      894        (1,917 )      146.6 %      (2,293 )      139.0 %      (1,399 )      6,971        (120.1 %) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Operating revenues

      759,041        912,706       (16.8 %)      810,227       (6.3 %)      1,569,268       1,873,255        (16.2 %) 

Interest revenue

      482,770        212,754       126.9 %      451,564       6.9 %      934,334       378,189        147.1 % 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total revenues

      1,241,811        1,125,460       10.3 %      1,261,791       (1.6 %)      2,503,602       2,251,444        11.2 % 

Interest expense

      191,090        17,333       nm       155,001       23.3 %      346,091       26,730        nm  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net revenues

      1,050,721        1,108,127       (5.2 %)      1,106,790       (5.1 %)      2,157,511       2,224,714        (3.0 %) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Non-interest expenses:

                   

Compensation and benefits

      609,144        643,535       (5.3 %)      641,937       (5.1 %)      1,251,081       1,307,915        (4.3 %) 

Occupancy and equipment rental

      84,579        77,884       8.6 %      82,039       3.1 %      166,618       154,893        7.6 % 

Communication and office supplies

      44,965        43,621       3.1 %      46,134       (2.5 %)      91,099       86,069        5.8 % 

Commissions and floor brokerage

      14,112        15,106       (6.6 %)      14,440       (2.3 %)      28,552       30,993        (7.9 %) 

Provision for credit losses

      7,824        12,785       (38.8 %)      4,920       59.0 %      12,744       21,025        (39.4 %) 

Other operating expenses

      93,568        79,864       17.2 %      90,051       3.9 %      183,619       146,525        25.3 % 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total non-interest expenses

      854,192        872,795       (2.1 %)      879,521       (2.9 %)      1,733,713       1,747,420        (0.8 %) 

Income before income taxes

      196,529        235,332       (16.5 %)      227,269       (13.5 %)      423,798       477,294        (11.2 %) 

Provision for income taxes

      50,953        62,158       (18.0 %)      56,681       (10.1 %)      107,634       119,213        (9.7 %) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net income

      145,576        173,174       (15.9 %)      170,588       (14.7 %)      316,164       358,081        (11.7 %) 

Preferred dividends

      9,320        9,321       (0.0 %)      9,320       0.0 %      18,640       18,641        (0.0 %) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net income available to common shareholders

    $ 136,256      $ 163,853       (16.8 %)    $ 161,268       (15.5 %)    $ 297,524     $ 339,440        (12.3 %) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Earnings per common share:

                   

Basic

    $ 1.26      $ 1.50       (16.0 %)    $ 1.48       (14.9 %)    $ 2.75     $ 3.11        (11.6 %) 

Diluted

    $ 1.20      $ 1.40       (14.3 %)    $ 1.40       (14.3 %)    $ 2.59     $ 2.88        (10.1 %) 

Weighted average number of common shares outstanding:

 

         

Basic

      107,944        109,083       (1.0 %)      108,754       (0.7 %)      108,360       109,144        (0.7 %) 

Diluted

      113,864        117,400       (3.0 %)      115,390       (1.3 %)      114,658       117,838        (2.7 %) 

Cash dividends declared per common share

    $ 0.36      $ 0.30       20.0 %    $ 0.36       0.0 %    $ 0.72     $ 0.60        20.0 % 

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Second Quarter 2023 Earnings Release    Page 4 of 18

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Consolidated Financial Summary

 

 

     Three Months Ended     Six Months Ended  
(Unaudited, 000s)    6/30/2023     6/30/2022     % Change     3/31/2023     % Change     6/30/2023     6/30/2022     % Change  

Net revenues:

                 

Global Wealth Management

    $ 758,190     $ 697,980       8.6 %    $ 757,186       0.1 %    $ 1,515,376     $ 1,379,705       9.8 % 

Institutional Group

      276,244       411,364       (32.8 %)      332,613       (16.9 %)      608,857       842,727       (27.8 %) 

Other

      16,287       (1,218 )      nm       16,994       (4.2 %)      33,281       2,221       nm  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenues

    $ 1,050,721     $ 1,108,126       (5.2 %)    $ 1,106,793       (5.1 %)    $ 2,157,514     $ 2,224,653       (3.0 %) 

Operating expenses:

                 

Global Wealth Management

    $ 458,286     $ 452,828       1.2 %    $ 441,077       3.9 %    $ 899,363     $ 909,140       (1.1 %) 

Institutional Group

      289,139       338,372       (14.5 %)      298,893       (3.3 %)      588,032       673,107       (12.6 %) 

Other

      121,911       98,385       23.9 %      156,940       (22.3 %)      278,851       196,756       41.7 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

    $ 869,336     $ 889,585       (2.3 %)    $ 896,910       (3.1 %)    $ 1,766,246     $ 1,779,003       (0.7 %) 

Operating contribution:

                 

Global Wealth Management

    $ 299,904     $ 245,152       22.3 %    $ 316,109       (5.1 %)    $ 616,013     $ 470,565       30.9 % 

Institutional Group

      (12,895 )      72,992       (117.7 %)      33,720       (138.2 %)      20,825       169,620       (87.7 %) 

Other

      (105,624 )      (99,603 )      6.0 %      (139,946 )      (24.5 %)      (245,570 )      (194,535 )      26.2 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 181,385     $ 218,541       (17.0 %)    $ 209,883       (13.6 %)    $ 391,268     $ 445,650       (12.2 %) 

Financial ratios:

                 

Compensation and benefits

      58.6 %      58.9 %      (30 )      58.8 %      (20 )      58.7 %      59.6 %      (90 ) 

Non-compensation operating expenses

      24.1 %      21.4 %      270       22.2 %      190       23.2 %      20.4 %      280  

Income before income taxes

      17.3 %      19.7 %      (240 )      19.0 %      (170 )      18.1 %      20.0 %      (190 ) 

Effective tax rate

      25.9 %      26.4 %      (50 )      24.9 %      100       25.4 %      25.0 %      40  

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Second Quarter 2023 Earnings Release    Page 5 of 18

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Consolidated Financial Information and Metrics

 

 

     As of and for the Three Months Ended  
(Unaudited, 000s, except per share data)    6/30/2023     6/30/2022     % Change     3/31/2023     % Change  

Financial Information:

           

Total assets

    $ 37,298,239     $ 36,476,441       2.3 %    $ 38,597,653       (3.4 %) 

Total shareholders’ equity

    $ 5,342,987     $ 5,124,737       4.3 %    $ 5,327,392       0.3 % 

Total common equity

    $ 4,657,987     $ 4,439,737       4.9 %    $ 4,642,392       0.3 % 

Goodwill and intangible assets

    $ (1,509,431 )    $ (1,444,158 )      4.5 %    $ (1,512,400 )      (0.2 %) 

DTL on goodwill and intangible assets

    $ 65,651     $ 58,731       11.8 %    $ 63,455       3.5 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Tangible common equity

    $ 3,214,207     $ 3,054,310       5.2 %    $ 3,193,447       0.7 % 

Preferred equity

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

Financial Metrics:

           

Book value per common share (2)

    $ 44.41     $ 41.82       6.2 %    $ 43.73       1.6 % 

Tangible book value per common share (2)

    $ 30.64     $ 28.77       6.5 %    $ 30.08       1.9 % 

Return on common equity (3)

      10.7 %      13.7 %        12.7 %   

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

      11.6 %      14.8 %        13.9 %   

Return on tangible common equity (4)

      15.5 %      20.0 %        18.3 %   

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

      16.8 %      21.6 %        19.9 %   

Pre-tax margin on net revenues

      17.3 %      19.7 %        19.0 %   

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

      18.7 %      21.2 %        20.5 %   

Effective tax rate

      25.9 %      26.4 %        24.9 %   

Non-GAAP effective tax rate (1)

      25.9 %      26.4 %        24.9 %   

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Second Quarter 2023 Earnings Release    Page 6 of 18

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Regulatory Capital

 

 

(Unaudited, 000s)    6/30/2023     6/30/2022     % Change     3/31/2023     % Change  

SF Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 3,314,189     $ 3,151,794       5.2 %    $ 3,280,309       1.0 % 

Tier 1 capital

    $ 3,999,189     $ 3,836,794       4.2 %    $ 3,965,309       0.9 % 

Risk-weighted assets

    $ 23,164,622     $ 21,281,241       8.8 %    $ 23,533,555       (1.6 %) 

Common equity tier 1 capital ratio

      14.3 %      14.8 %        13.9 %   

Tier 1 risk based capital ratio

      17.3 %      18.0 %        16.8 %   

Tier 1 leverage capital ratio

      11.1 %      11.2 %        10.9 %   

Stifel Bank & Trust Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 1,513,202     $ 1,482,526       2.1 %    $ 1,590,068       (4.8 %) 

Tier 1 capital

    $ 1,513,202     $ 1,482,526       2.1 %    $ 1,590,068       (4.8 %) 

Risk-weighted assets

    $ 13,967,711     $ 13,783,486       1.3 %    $ 14,462,065       (3.4 %) 

Common equity tier 1 capital ratio

      10.8 %      10.8 %        11.0 %   

Tier 1 risk based capital ratio

      10.8 %      10.8 %        11.0 %   

Tier 1 leverage capital ratio

      7.5 %      7.1 %        7.5 %   

Stifel Bank Regulatory Capital (5):

           

Common equity tier 1 capital

    $ 639,967     $ 346,827       84.5 %    $ 596,152       7.3 % 

Tier 1 capital

    $ 639,967     $ 346,827       84.5 %    $ 596,152       7.3 % 

Risk-weighted assets

    $ 5,145,958     $ 2,970,926       73.2 %    $ 4,548,287       13.1 % 

Common equity tier 1 capital ratio

      12.4 %      11.7 %        13.1 %   

Tier 1 risk based capital ratio

      12.4 %      11.7 %        13.1 %   

Tier 1 leverage capital ratio

      7.1 %      7.2 %        7.5 %   

Stifel Net Capital (5):

           

Net capital

    $ 456,500     $ 627,100       (27.2 %)    $ 514,500       (11.3 %) 

Excess net capital

    $ 433,900     $ 596,500       (27.3 %)    $ 491,500       (11.7 %) 

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Second Quarter 2023 Earnings Release    Page 7 of 18

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Global Wealth Management - Summary Results of Operations

 

 

     Three Months Ended     Six Months Ended  
(Unaudited, 000s)    6/30/2023     6/30/2022     % Change     3/31/2023     % Change     6/30/2023     6/30/2022     % Change  

Revenues:

                 

Commissions

    $ 109,836     $ 122,004       (10.0 %)    $ 110,191       (0.3 %)    $ 220,027     $ 252,780       (13.0 %) 

Principal transactions

      48,122       48,466       (0.7 %)      51,064       (5.8 %)      99,186       94,010       5.5 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactional revenues

      157,958       170,470       (7.3 %)      161,255       (2.0 %)      319,213       346,790       (8.0 %) 

Asset management

      320,238       331,243       (3.3 %)      315,537       1.5 %      635,775       672,856       (5.5 %) 

Net interest

      277,345       195,828       41.6 %      281,932       (1.6 %)      559,277       352,588       58.6 % 

Investment banking (6)

      4,065       5,056       (19.6 %)      4,158       (2.2 %)      8,223       10,203       (19.4 %) 

Other income

      (1,416 )      (4,617 )      69.3 %      (5,696 )      75.1 %      (7,112 )      (2,732 )      (160.3 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

      758,190       697,980       8.6 %      757,186       0.1 %      1,515,376       1,379,705       9.8 % 

Non-interest expenses:

                 

Compensation and benefits

      354,086       349,368       1.4 %      342,423       3.4 %      696,509       714,361       (2.5 %) 

Non-compensation operating expenses

      104,200       103,460       0.7 %      98,654       5.6 %      202,854       194,779       4.1 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-interest expenses

      458,286       452,828       1.2 %      441,077       3.9 %      899,363       909,140       (1.1 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 299,904     $ 245,152       22.3 %    $ 316,109       (5.1 %)    $ 616,013     $ 470,565       30.9 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

As a percentage of net revenues:

                 

Compensation and benefits

      46.7 %      50.1 %      (340 )      45.2 %      150       46.0 %      51.8 %      (580 ) 

Non-compensation operating expenses

      13.7 %      14.8 %      (110 )      13.1 %      60       13.3 %      14.1 %      (80 ) 

Income before income taxes

      39.6 %      35.1 %      450       41.7 %      (210 )      40.7 %      34.1 %      660  

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Second Quarter 2023 Earnings Release    Page 8 of 18

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Global Wealth Management - Statistical Information

 

 

     As of and for the Three Months Ended  
(Unaudited, 000s, except financial advisors)    6/30/2023     6/30/2022     % Change     3/31/2023     % Change  

Financial advisors (including independent contractors) (7)

      2,369       2,330       1.7 %      2,350       0.8 % 

Total client assets

    $ 417,669,000     $ 377,591,000       10.6 %    $ 405,988,000       2.9 % 

Fee-based client assets

    $ 154,538,000     $ 141,223,000       9.4 %    $ 149,541,000       3.3 % 

Transactional assets

    $ 263,131,000     $ 236,368,000       11.3 %    $ 256,447,000       2.6 % 

Secured client lending (8)

    $ 3,163,000     $ 4,045,000       (21.8 %)    $ 3,393,000       (6.8 %) 

Asset Management Revenue (000s):

           

Private Client Group (9)

    $ 266,510     $ 282,207       (5.6 %)    $ 259,491       2.7 % 

Asset Management

      33,154       32,511       2.0 %      32,241       2.8 % 

Third-party Bank Sweep Program

      7,452       3,841       94.0 %      11,261       (33.8 %) 

Other (10)

      13,148       12,705       3.5 %      12,576       4.5 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total asset management revenues

    $ 320,264     $ 331,264       (3.3 %)    $ 315,569       1.5 % 

Fee-based Assets (millions):

           

Private Client Group (9)

    $ 135,606     $ 123,832       9.5 %    $ 131,483       3.1 % 

Asset Management

      34,766       31,288       11.1 %      33,409       4.1 % 

Elimination (11)

      (15,834 )      (13,897 )      13.9 %      (15,351 )      3.1 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fee-based assets

    $ 154,538     $ 141,223       9.4 %    $ 149,541       3.3 % 

Third-party Bank Sweep Program

    $ 657     $ 1,666       (60.6 %)    $ 915       (28.2 %) 

ROA (bps) (12):

           

Private Client Group (9)

      81.1       81.7         82.3    

Asset Management

      38.1       41.6         38.6    

Third-party Bank Sweep Program

      362.3       41.3         303.9    

Stifel Bancorp Deposits (millions):

           

Sweep Deposits

    $ 12,293     $ 23,804       (48.4 %)    $ 14,057       (12.5 %) 

Smart Rate Deposits

      11,858       929       nm       10,778       10.0 % 

Direct Wealth Management Deposits at Stifel Bancorp

      319       20       nm       189       68.8 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Stifel Bancorp Wealth Management Deposits

      24,470       24,753       (1.1 %)      25,024       (2.2 %) 

Other Bank Deposits

      2,535       1,256       101.8 %      3,301       (23.2 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Stifel Bancorp Deposits

    $ 27,005     $ 26,009       3.8 %    $ 28,325       (4.7 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Short-term Treasuries (millions) (13)

    $ 7,104     $ 2,048       246.9 %    $ 6,617       7.4 % 

Wealth Management Cash (millions):

           

Stifel Bancorp Wealth Management Deposits

    $ 24,470     $ 24,753       (1.1 %)    $ 25,024       (2.2 %) 

Third-party Bank Sweep Program

      657       1,666       (60.6 %)      915       (28.2 %) 

Other Sweep Cash

      284       360       (21.1 %)      252       12.7 % 

Money Market Mutual Funds

      8,034       5,860       37.1 %      7,434       8.1 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Wealth Management Cash

    $ 33,445     $ 32,639       2.5 %    $ 33,625       (0.5 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Second Quarter 2023 Earnings Release    Page 9 of 18

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Institutional Group - Summary Results of Operations

 

 

     Three Months Ended     Six Months Ended  
(Unaudited, 000s)    6/30/2023     6/30/2022     % Change     3/31/2023     % Change     6/30/2023     6/30/2022     % Change  

Revenues:

                 

Commissions

    $ 55,522     $ 64,677       (14.2 %)    $ 59,359       (6.5 %)    $ 114,881     $ 129,810       (11.5 %) 

Principal transactions

      57,578       77,137       (25.4 %)      64,458       (10.7 %)      122,036       190,863       (36.1 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactional revenues

      113,100       141,814       (20.2 %)      123,817       (8.7 %)      236,917       320,673       (26.1 %) 

Capital raising

      74,886       66,463       12.7 %      56,658       32.2 %      131,544       134,766       (2.4 %) 

Advisory

      86,595       199,556       (56.6 %)      151,063       (42.7 %)      237,658       380,952       (37.6 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment banking

      161,481       266,019       (39.3 %)      207,721       (22.3 %)      369,202       515,718       (28.4 %) 

Other income (14)

      1,663       3,531       (52.9 %)      1,075       54.7 %      2,738       6,336       (56.8 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

      276,244       411,364       (32.8 %)      332,613       (16.9 %)      608,857       842,727       (27.8 %) 

Non-interest expenses:

                 

Compensation and benefits

      194,158       244,711       (20.7 %)      205,905       (5.7 %)      400,063       497,058       (19.5 %) 

Non-compensation operating expenses

      94,981       93,661       1.4 %      92,988       2.1 %      187,969       176,049       6.8 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-interest expenses

      289,139       338,372       (14.5 %)      298,893       (3.3 %)      588,032       673,107       (12.6 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income/(loss) before income taxes

    $ (12,895 )    $ 72,992       (117.7 %)    $ 33,720       (138.2 %)    $ 20,825     $ 169,620       (87.7 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

As a percentage of net revenues:

                 

Compensation and benefits

      70.3 %      59.5 %      1,080       61.9 %      840       65.7 %      59.0 %      670  

Non-compensation operating expenses

      34.4 %      22.8 %      1,160       28.0 %      640       30.9 %      20.9 %      1,000  

Income before income taxes

      (4.7 %)      17.7 %      (2,240 )      10.1 %      (1,480 )      3.4 %      20.1 %      (1,670 ) 

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Second Quarter 2023 Earnings Release    Page 10 of 18

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Stifel Bancorp - Financial Information and Credit Metrics

 

 

(Unaudited, 000s)    6/30/2023     6/30/2022     % Change     3/31/2023     % Change  

Stifel Bancorp Financial Information:

           

Total assets

    $ 29,260,431     $ 27,957,299       4.7 %    $ 30,701,371       (4.7 %) 

Total shareholder’s equity

    $ 2,148,221     $ 1,840,273       16.7 %    $ 2,199,821       (2.3 %) 

Total loans, net (includes loans held for sale)

    $ 20,562,492     $ 19,271,862       6.7 %    $ 20,935,133       (1.8 %) 

Residential real estate

      7,708,506       6,607,825       16.7 %      7,494,788       2.9 % 

Commercial and industrial

      4,471,031       4,862,673       (8.1 %)      4,755,664       (6.0 %) 

Fund banking

      4,349,541       3,484,737       24.8 %      4,623,423       (5.9 %) 

Securities-based loans

      2,399,328       2,993,552       (19.9 %)      2,558,343       (6.2 %) 

Commercial real estate

      677,521       629,459       7.6 %      663,325       2.1 % 

Construction and land

      772,571       432,039       78.8 %      644,800       19.8 % 

Other

      154,469       148,335       4.1 %      159,101       (2.9 %) 

Loans held for sale

      224,017       288,676       (22.4 %)      225,365       (0.6 %) 

Investment securities

    $ 7,532,175     $ 7,761,115       (2.9 %)    $ 7,607,385       (1.0 %) 

Available-for-sale securities, at fair value

      1,582,418       1,879,904       (15.8 %)      1,624,458       (2.6 %) 

Held-to-maturity securities, at amortized cost

      5,949,757       5,881,211       1.2 %      5,982,927       (0.6 %) 

Unrealized losses on available-for-sale securities

      (215,038 )      (173,910 )      23.6 %      (196,621 )      9.4 % 

Total deposits

    $ 27,004,807     $ 26,009,300       3.8 %    $ 28,325,327       (4.7 %) 

Demand deposits (interest-bearing)

      26,744,730       25,670,438       4.2 %      27,862,336       (4.0 %) 

Demand deposits (non-interest-bearing)

      260,075       319,682       (18.6 %)      456,091       (43.0 %) 

Certificates of deposit

      2       19,180       nm       6,900       nm  

Credit Metrics:

           

Allowance for credit losses

    $ 160,132     $ 139,553       14.7 %    $ 152,906       4.7 % 

Allowance as a percentage of retained loans

      0.78 %      0.73 %        0.73 %   

Net charge-offs as a percentage of average loans

      0.00 %      0.00 %        0.00 %   

Total nonperforming assets

    $ 11,420     $ 29,430       (61.2 %)    $ 10,749       6.2 % 

Nonperforming assets as a percentage of total assets

      0.04 %      0.11 %        0.04 %   

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Second Quarter 2023 Earnings Release    Page 11 of 18

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Stifel Bancorp - Loan and Investment Portfolio

 

 

(Unaudited, millions)    6/30/2023      % of Total
Portfolio		                    

Loan Portfolio

         Commercial Portfolio by Major Sector      

Residential real estate

    $ 7,709        29 %   

Industrials

    $ 1,062        4 % 

Securities-based loans

      2,399        9 %   

Financials

      897        3 % 

Home equity lines of credit and other

      154        1 %   

Consumer discretionary

      605        2 % 
  

 

 

     

 

 

          

Total consumer

      10,262        38 %   

Information technology

      604        2 % 
  

 

 

     

 

 

          

Commercial and industrial

      4,471        17 %   

Healthcare

      303        1 % 

Fund banking

      4,350        16 %   

Materials

      257        1 % 

Construction and land

      773        3 %   

REITs

      255        1 % 

Commercial real estate

      677        3 %   

Communication services

      184        1 % 
  

 

 

     

 

 

          

Total commercial

      10,271        38 %   

Hotel, leisure, restaurants

      142        1 % 
  

 

 

     

 

 

          

Total loan portfolio

      20,533        76 %   

Consumer staples

      119        0 % 
  

 

 

     

 

 

          

Unfunded commitments

      6,402        24 %         
  

 

 

     

 

 

          

Total

    $ 26,935             
  

 

 

             
        CLO by Major Sector      
       

High tech industries

    $ 604        10 % 

Investment Portfolio

        

Healthcare & pharmaceuticals

      601        10 % 

CLO

    $ 5,919        76 %   

Services: business

      533        9 % 

Agency MBS

      900        12 %   

Banking, finance, insurance, & real estate

      513        9 % 

Corporate bonds

      622        8 %   

Construction & building

      257        4 % 

SBA

      139        2 %   

Services: consumer

      250        4 % 

Student loan ARS

      93        1 %   

Chemicals, plastics, & rubber

      249        4 % 

CMBS

      70        1 %   

Media: broadcasting & subscription

      248        4 % 

Other

      4        0 %   

Hotel, gaming, & leisure

      240        4 % 
  

 

 

     

 

 

          

Total Portfolio

    $ 7,747        100 %   

Telecommunications

      240        4 % 
  

 

 

     

 

 

          

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Second Quarter 2023 Earnings Release    Page 12 of 18

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Loans and Lending Commitments - Allowance for Credit Losses

 

 

     June 30, 2023               
(Unaudited, 000s)    Loans and Lending
Commitments		      ACL      ACL %     Q2 Provision  

Residential real estate

    $ 7,708,506      $ 14,413        0.2 %    $ (8,283 ) 

Commercial and industrial

      4,471,031        66,377        1.5 %      11,241  

Fund banking

      4,349,541        12,178        0.3 %      (765 ) 

Securities-based loans

      2,399,328        3,086        0.1 %      (31 ) 

Commercial real estate

      677,521        13,429        2.0 %      1,863  

Construction and land

      772,571        12,645        1.6 %      2,328  

Other

      154,469        553        0.4 %      (236 ) 
  

 

 

     

 

 

       

 

 

  

Loans held for investment, gross

      20,532,967        122,681        0.6 %      6,117  

Loans held for sale

      224,017          
  

 

 

          

Total loans, gross

      20,756,984          

Lending commitments

      6,402,000        37,451        0.6 %      1,707  
  

 

 

     

 

 

       

 

 

  

Loans and lending commitments

    $ 27,158,984      $ 160,132        $ 7,824  
  

 

 

     

 

 

       

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Second Quarter 2023 Earnings Release    Page 13 of 18

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Consolidated Net Interest Income

 

 

    Three Months Ended  
    June 30, 2023     June 30, 2022     March 31, 2023  
(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

   $ 2,015.4     $ 25.0       4.96 %    $ 1,106.4     $ 2.9       1.05 %    $ 1,989.5     $ 22.7       4.57 % 

Financial instruments owned

     864.7       4.6       2.14 %      1,171.1       4.1       1.39 %      877.7       3.7       1.70 % 

Margin balances

     795.6       15.4       7.72 %      1,105.7       8.7       3.16 %      831.2       14.9       7.16 % 

Investments:

                  

Asset-backed securities

     6,162.8       106.5       6.91 %      5,728.1       36.3       2.53 %      6,202.4       98.8       6.37 % 

Mortgage-backed securities

     974.9       5.4       2.20 %      991.3       4.7       1.89 %      986.6       5.4       2.18 % 

Corporate fixed income securities

     622.5       4.3       2.77 %      756.2       5.0       2.68 %      637.5       4.1       2.61 % 

Other

     4.7       —         2.55 %      4.8       —         1.72 %      4.7       —         2.55 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total investments

     7,764.9       116.2       5.99 %      7,480.4       46.0       2.46 %      7,831.2       108.3       5.53 % 

Loans:

                  

Residential real estate

     7,605.8       57.2       3.01 %      6,301.8       39.5       2.51 %      7,446.1       53.5       2.87 % 

Commercial and industrial

     4,715.2       96.7       8.21 %      4,805.7       50.9       4.24 %      4,816.3       94.3       7.83 % 

Fund banking

     4,403.6       82.9       7.53 %      3,369.6       27.0       3.21 %      4,396.4       76.3       6.94 % 

Securities-based loans

     2,469.1       43.0       6.96 %      2,972.2       20.7       2.79 %      2,638.0       42.5       6.44 % 

Commercial real estate

     688.3       13.1       7.59 %      592.3       4.9       3.32 %      666.8       10.9       6.57 % 

Construction and land

     702.3       14.2       8.07 %      431.9       4.1       3.76 %      612.6       11.5       7.49 % 

Loans held for sale

     178.9       3.0       6.72 %      293.3       1.9       2.55 %      206.3       3.4       6.53 % 

Other

     161.6       2.9       7.65 %      130.8       1.4       4.17 %      153.9       2.7       7.12 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total loans

     20,924.8       313.0       5.98 %      18,897.6       150.4       3.18 %      20,936.4       295.1       5.64 % 

Other interest-bearing assets

     718.2       8.6       4.76 %      1,149.5       0.7       0.24 %      797.3       6.9       3.45 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing assets/ interest income

     33,083.6       482.8       5.84 %      30,910.7       212.8       2.75 %      33,263.3       451.6       5.43 % 

Interest-bearing liabilities:

                  

Senior notes

     1,114.9       12.5       4.49 %      1,113.8       11.3       4.05 %      1,114.6       12.5       4.49 % 

Deposits

     27,223.3       171.4       2.52 %      24,231.9       3.6       0.06 %      27,138.0       137.3       2.02 % 

Other interest-bearing liabilities

     1,181.3       7.2       2.45 %      2,032.8       2.4       0.48 %      1,170.5       5.2       1.78 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing liabilities/ interest expense

   $ 29,519.5       191.1       2.59 %    $ 27,378.5       17.3       0.25 %    $ 29,423.1       155.0       2.11 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

Net interest income/margin

     $ 291.7       3.53 %      $ 195.5       2.53 %      $ 296.6       3.57 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Second Quarter 2023 Earnings Release    Page 14 of 18

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Stifel Bancorp Net Interest Income

 

 

     Three Months Ended  
     June 30, 2023     June 30, 2022     March 31, 2023  
(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

    $ 1,128.4      $ 15.0        5.31 %    $ 453.1      $ 1.0        0.87 %    $ 916.1      $ 11.2        4.91 % 

Investments

      7,764.9        116.2        5.99 %      7,480.4        46.0        2.46 %      7,831.2        108.3        5.53 % 

Loans

      20,924.8        313.0        5.98 %      18,897.6        150.4        3.18 %      20,936.4        295.1        5.64 % 

Other interest-bearing assets

      62.9        0.7        4.13 %      68.1        0.8        4.67 %      57.4        0.6        3.86 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total interest-bearing assets/ interest income

    $ 29,881.0      $ 444.9        5.96 %    $ 26,899.2      $ 198.2        2.95 %    $ 29,741.1      $ 415.2        5.58 % 

Interest-bearing liabilities:

                         

Deposits

    $ 27,223.3      $ 171.4        2.52 %    $ 24,231.9      $ 3.6        0.06 %    $ 27,138.0      $ 137.3        2.02 % 

Other interest-bearing liabilities

      0.8        0.1        50.62 %      369.5        0.8        0.90 %      6.4        0.1        6.62 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total interest-bearing liabilities/ interest expense

    $ 27,224.1        171.5        2.52 %    $ 24,601.4        4.4        0.07 %    $ 27,144.4        137.4        2.02 % 
     

 

 

     

 

 

       

 

 

     

 

 

       

 

 

     

 

 

  

Net interest income/margin

       $ 273.4        3.66 %       $ 193.8        2.88 %       $ 277.8        3.74 % 
     

 

 

     

 

 

       

 

 

     

 

 

       

 

 

     

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Second Quarter 2023 Earnings Release    Page 15 of 18

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GAAP to Core Reconciliation

 

 

     Three Months Ended     Six Months Ended  
(Unaudited, 000s)    6/30/2023     6/30/2022     Change     3/31/2023     Change     6/30/2023     6/30/2022     Change  

GAAP net revenues

    $ 1,050,721     $ 1,108,126       $ 1,106,793       $ 2,157,514     $ 2,224,653    

Non-GAAP adjustments

      —         1         (3 )        (3 )      61    
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP net revenues

      1,050,721       1,108,127         1,106,790         2,157,511       2,224,714    

GAAP compensation and benefits expense

      615,667       652,709         651,190         1,266,857       1,326,400    

Merger-related (15)

      (6,523 )      (9,174 )        (9,253 )        (15,776 )      (18,485 )   
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP compensation and benefits expense

      609,144       643,535         641,937         1,251,081       1,307,915    

GAAP non-compensation operating expenses

      253,669       236,876         245,720         499,389       452,603    

Merger-related (15)

      (8,621 )      (7,616 )        (8,136 )        (16,757 )      (13,098 )   
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP non-compensation operating expenses

      245,048       229,260         237,584         482,632       439,505    
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Total merger-related adjustments

      (15,144 )      (16,791 )        (17,386 )        (32,530 )      (31,644 )   
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

GAAP provision for income taxes

      47,033       57,725         52,344         99,377       111,285    

Merger-related and other (15)

      3,920       4,433         4,337         8,257       7,928    
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP provision for income taxes

      50,953       62,158         56,681         107,634       119,213    

Financial ratios:

                 

Compensation and benefits

      58.0 %      58.1 %      (10 )      58.0 %      —         58.0 %      58.8 %      (80 ) 

Non-compensation operating expenses

      23.3 %      20.7 %      260       21.5 %      180       22.4 %      19.7 %      270  

Income before income taxes

      18.7 %      21.2 %      (250 )      20.5 %      (180 )      19.6 %      21.5 %      (190 ) 

Effective tax rate

      25.9 %      26.4 %      (50 )      24.9 %      100       25.4 %      25.0 %      40  

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Second Quarter 2023 Earnings Release    Page 16 of 18

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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 $64.6 million, $57.4 million, and $62.3 million, as of June 30, 2023 and 2022, and March 31, 2023, respectively.

(5)

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

(6)

Includes capital raising and advisory fee revenues.

(7)

Includes independent contractors of 109, 100, and 102 as of June 30, 2023 and 2022, and March 31, 2023, respectively.

(8)

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

(9)

Includes Private Client Group and Trust Business.

(10)

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

(11)

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

(12)

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

(13)

Represents client assets in Treasury Securities with maturities of 52 weeks or less.

(14)

Includes net interest, asset management, and other income.

(15)

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

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Second Quarter 2023 Earnings Release    Page 17 of 18

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Disclaimer and Legal Notice

 

Forward-Looking Statements

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

All statements not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. For information about the risks and important factors that could affect the Company’s future results, financial condition and liquidity, see “Risk Factors” in Part I of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Forward-looking statements speak only as to the date they are made. The Company disclaims any intent or obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Use of Non-GAAP Financial Measures

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

Legal Notice

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

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Second Quarter 2023 Earnings Release    Page 18 of 18