Stifel Financial Corporation · NYSE:SF
Stifel Financial — Investor Presentation (March 2015)
43 slides from Stifel Financial's investor presentation, Mar 18, 2015
Slide 1: Stifel Financial Corp. March 2015
Exhibit 99.1 Stifel Financial March 2015 Corp.
Slide 2: Forward-Looking Statements Disclaimer
Forward-Looking Disclaimer This statements particular, costs You the Actual quarterly actions Use The income understanding excluding operating 2not performance. future, be Company of should presentation and considered Non-GAAP results of taxes, reports benefits, performance competitors, certain thes
Slide 3: Stifel Overview
Stifel Overview
Slide 4: Stifel at a Glance
Core Global Net Private Stifel Margin Asset Low 34% Balanced Over Largest Broad (1) (2) (3) 4(4) Assets As Insider Revenue—$1,233 leverage Insider Net 6,200 2,100 –Management at Bank investment of Wealth Client Premier and U.S. a3/6/2015. 12/31/2014. Revenue—$2,213 business Glance /ownership associa
Slide 5: Leading institutional firm with wealth management scale
Leading institutional Stifel’s Bulge Size Firm Stability Issues Large Banker Trading Research Lack Institutional Retail 1LARGEST 32nd outside FULL 87expertise ACCESS 10 11 12 13 (1) (2) 5Represents Wells Morgan UBS RBC Oppenheimer Sterne Deutsche Janney Robert Based Source: LARGEST /focus of scale d
Slide 6: Significant acquisitions and growth history
Significant 2014 2015 De Oriel Acacia Knight Group’s 2013 Keefe, & 2012 Miller Stone 2011 Thomas 2010 56 2009 Partners Branches Butler Ryan 2007 Stifel $M Legg 2005 Markets As 6Acquired )Woods UBS of LaAcquisition Sterne 1919 Ziegler Income Mason’s Securities, Beck Bank 3/3/15. &Rosa, Buckfire 2008
Slide 7: Building each business through acquisitions
Building Each Public December Customized advisory Growth Investment UK-based investment California-based bank April Private Asset Over November Bank Clean residential October Knight Fixed July FIG Exceeded February Investment Sales 2014 2013 and merger $4 2014 holding Management Income portfolio Fin
Slide 8: Acquisition integration and updates
Acquisition [Graphic Added Closed Integration + Assessment TIF K-12 Multifamily Stifel/KBW Ranked Sources: 8Financial Ranked approximately December November July #1 #2 ¹Ranking Appears based #1 in and Updates 31, District ranked Housing in municipal bank bankruptcy conversion 2014 onHere] 31, 7, acc
Slide 9: Well-diversified, balanced business model
Well-diversified, [Graphic Unburdened Low Limited Stable Drive Net 2013 Balanced 9Note: Revenues leverage 2014 Net revenue wealth balance Appears business revenues 2013 by management business Core synergies capital sheet 2014 low Here] model and Operating risk risk constraints model operating by fac
Slide 10: Demonstrated ability to grow through market environments
Demonstrated while Core CAGR: Financial 10 Net maintaining 22% Revenues Crisis CAGR: ability Financial solid ($MM) to 24%grow profitability Crisis Core through Net Income all market ($MM) environments
Slide 11: Segment Overview – Global Wealth Management
Segment Overview – Global Wealth Management
Slide 12: Global Wealth Management Overview
Global Provides Overview Grown 2,100(1) Proven Individual business Goal buyers institutional Strategy established Expanding Net CAGR: Includes Revenues ofWealth from organic providing 23% of Independent financial Securities National investors U.S. recruiting client order 600+ CAGR: ($MM) Management
Slide 13: Global Wealth Management Key Financial Metrics
Global Key Financial Accounts (1) Includes Operating Wealth Advisors Total Independent Management Metrics Client (1)Assets Branches Contractors. ($MM) 13
Slide 14: Stifel Bank Overview
Acquired Overview Stifel Balance Funded Maintain Strength Offers Built-in High Highly Interest Total: Note: Average Non-agency Commercial 14 net Bank Financial Data $4.9 banking efficient Earnings by source sheet interest of worth high FirstService Stifel Billion as Brokerage and MBS, Real of growth
Slide 15: Growing Asset Management Capabilities
Growing Total Assets¹ Baltimore, $10.0 Chicago, $6.0 $2.0 $1.0 $755 $305 ¹Asset 15 Billion Assets: Million Billion asLocation Asset Milwaukee, ofNew December St. Baltimore, Portland, $20.1 Florham San Cincinnati, Management Louis York, Francisco, Billion¹ OR Park, 31, MD Philadelphia 2014. NJ CA Cap
Slide 16: Segment Overview – Institutional Group
Segment Overview – Institutional Group
Slide 17: Institutional Group Overview
Institutional Provides Overview Largest 2nd Full-service Comprehensive Net Equity Fixed (1) (3) Based 2012 Revenues largest Income Brokerage provider includes securities onEquity Investment Group 2014 Brokerage ($MM)(2)(3) Fixed ofrealized +trading U.S. brokerage, U.S. Investment Income trading Bank
Slide 18: Institutional Equity Research Coverage
Institutional U.S. Companies 987654321Rank 10 11 12 13 14 15 16 17 19 20 21 22 23 24 25 Source: Small Note: (3) Stifel 116 Largest Ranked Coverage 18Wells Stifel/KBW BofA JPMorgan Goldman Credit Barclays Raymond Morgan Jefferies William RBC Deutsche Citi UBS Robert Cowen BMO Keybanc Evercore Morning
Slide 19: Powerful Institutional Equity Platform
Powerful Institutional 103 Experts Team Offices Accounts Managed Equity 92 Baltimore, 828 Profitable Extensive Relationships Active Traded Complete Major Multi-execution Dedicated 19specialized sales position person based leaders liquidity Trading daily over in in traders Platform over range coverag
Slide 20: Institutional Fixed Income Overview
Institutional Strong Comprehensive Overview 90 approaching 728-person Widespread More 40 European Client Platform Customer-driven Focus managers Mortgage-Backed versus Reverse Consistency Identification value class/security Securities (1) (2) person traders institutional Client Other through than on
Slide 21: Public Finance Overview
Institutional Overview Stifel has Stifel’s 5negotiated 8105 Specialty 13 ?14 Public Negotiated 19 Competitive Number Senior Co-Manager Total Source: 21 Education Local Healthcare Public-Private Housing Raymond Citi Wells Morgan City ranked Public of 804 410 has 1,490.1 Finance Manager/Private Manage
Slide 22: Investment Banking Accomplishments
Investment Accomplished All ($ 987654321Rank 10 11 12 13 14 15 16 17 18 19 20 21 23 24 25 Source: Volume 22Wells Bank JPMorgan Citi Morgan Barclays Credit Deutsche Stifel/KBW in RBC William Goldman UBS Raymond Jefferies Robert Piper JMP Oppenheimer Cowen KeyBanc BMO Canaccord Janney Ladenburg Manage
Slide 23: Financial Overview
Financial Overview
Slide 24: Stifel Financial Three Months Results
Stifel Three ($ (2)(2) Interest Total Provision Discontinued Net Loss Earnings Weighted Diluted Ratios Compensation Non-comp Income Non-core Results 24 inincome revenues thousands, from revenues non-interest Financial months Months tofor expense from 77,540 per net adjustments average for discontinu
Slide 25: Stifel Financial Year Results
Stifel Year ($ Interest Total Provision Discontinued Net Loss Earnings Weighted Diluted Ratios Compensation Non-comp Income (1) (2) 25 inResults Non-core revenues income ended Ended thousands, from revenues non-interest Financial tofrom expense 76,376 per net average for discontinued operating for D
Slide 26: Sources of Net Revenues
Sources Three ($ %%% Commissions Principal Brokerage Capital Advisory Investment Asset Other(3,960) Total Interest Net 26 inrevenues thousands) operating revenues mgt Months raising revenue expense oftransactions 103,423 and revenues Revenues banking 19,391(120.4%) $$Ended service 590,636 71,178 578
Slide 27: Brokerage and Investment Banking Revenues
Brokerage Three ($ Global Institutional Investment Capital Equity Fixed Advisory Total 27 in thousands) Institutional brokerage capital Investment income Months brokerage 49,866 Wealth raising fees &Banking: Group raising Investment brokerage 21,311 103,424 Ended 57,335(13.0%) Management revenues 12
Slide 28: Core Non-Interest Expenses, Three Months
Core Three ($ (1)(1) Net Compensation Transition Occupancy Communication Commissions Other Total Income Provision Non-GAAP Non-core GAAP (1) (2) 28 inTransition Excludes revenues thousands) Non-Interest compensation non-comp non-interest operating months Months net from expenses for pay income and n
Slide 29: Core Non-Interest Expenses, Year
Core Year ($ (1)(1) Net Compensation Occupancy Communication Commissions Other Total Income Provision Non-GAAP Non-core GAAP Excludes Transition 29 inrevenues ended Ended% thousands) Non-Interest compensation non-comp non-interest operating net from non-core expenses for pay income December and net
Slide 30: Segment Comparison – Core
Segment Three ($ %% Net Other(5,597) $Other(29,532)(37,184)(20.6%)(45,495)(35.1%)(162,611)(147,377) As Operating Global Institutional 15.5 (1) 30578,115 89,739 inaExcludes revenues: 16.0 percentage thousands) and Months Wealth Comparison—Core $14.9 $contribution contribution: nine 90,428(0.8%) 564,6
Slide 31: Stifel Bank Assets and Liabilities
Stifel An As Actual Cash Assets Bank Deposits Liabilities Other Total Net Allowance Non-performing Note: Investment Includes 31 of Operating interest 119,501 interest assets liabilites loans Actual Bank 12/31/14 assets liabilities ($)loans 4,790,084 Yield for as securities (2) & 5,237,970 margin (no
Slide 32: Capital Structure and Stockholders' Equity
Capital As ($ Stockholders’ 6.70% 5.375% 4.250% Debentures Total Debt Ratios: Pro Tier (1) (2) 32 inof Debt Pro Forma 1thousands) to Assets Capitalization December Leverage Risk senior forma Structure Equity senior to Debt equity Based to9,518,151 notes, debt Equity Stifel notes, (1) Ratio to 31, ra
Slide 33: Other Financial Data and Leverage
Other As 12/31/14 Leverage Stifel Book Financial Full Locations Total (1) 33 of Includes -time assets shareholders’ leverage client As Nicolaus Bank value Financial of 12/31/13% ratio: advisors 367 associates assets 5,221,348 406,019 12.9 per (000s): 9,518,151 138, ratio 357 & share Data 15.8(18.4%)
Slide 34: Sterne Agee Merger
Sterne Agee Merger
Slide 35: Why this transaction makes sense
Why transaction This Leverages Significantly Highly Accretive 35 This Complementary to Combination both Stifel Increases the brings Wealth Financial together Makes Fixed Management Income Sense two Advisors companies Platforms and andInstitutional Independent with a shared Platforms Representatives
Slide 36: Sterne Agee overview
Sterne Global Private Client Over financial advisors branches $10B and managed based $85M Revenue Acquired 36 $1.4B 130 in accounts $90M Advisors Agee Wealth Independent AUM in Over Revenue with fee business in 23Business $6M platforms $10B reps independent states 600 Management entity Income $5M Re
Slide 37: Transaction highlights and purchase consideration
Transaction Purchase Consideration Retention: Required Anticipated $150 At Expected elections) Approximately Subject 2nd 37 closing, Quarter million toPrice: Approvals: EPS retention customary aClosing: Highlights of minimum , Mix: based Impact: 2015 $77payments 6%—8% million, upon regulatory ofaccr
Slide 38: Financially attractive: uses and economic returns
Financially Uses Economic Purchase Stifel’s Retention Investment ($M) Income Less: Total Conservatively Modeled restructuring •Attractive 38 Approximately Potential Expenses Return of Uses Duplicative Estimated Plus: Statement Capital on including Price 35 Returns Investment gross (Economic of Restr
Slide 39: Significant increases in advisors and branches
Significant Increases Total $10 •including accounts branches Independent Sterne (Independent) Over Branches Serving 39More billion Advisors 600 $10 Agee’s than clients Reps Advisor in independent billion $1.4 in Private 130 40retail Private Financial Overview billion 730 in states financial inall Co
Slide 40: Pro forma retail brokerage ranking
#6Wells Retail 654321Rank 987Stifel 10 11 12 13 14 15 16 17 18 19 20 Over More Pro ¹Source: 40Morgan Bank Raymond UBS Stifel RBC Oppenheimer JPMorgan Sterne Wedbush Largest Deutsche Janney Robert Stephens Southwest Canaccord DA Barclays Lazard Forma $200 Firm than 2,103 Brokerage Davidson 4,286 Capi
Slide 41: Sterne Agee trust and clearing overview
Sterne Trust Offers Investment Estate Personal Retirement A Protecting Meeting Providing Clearing 9th Over 54,000+ 51,000+ 321Rank 987654201 10 11 12 13 14 41Wedbush Pershing National Merrill RBC Southwest COR Goldman Sterne Focus Apex FirstSouthwest First Raymond LPL Largest 85 $27 Company Firm Adm
Slide 42: Complementary fixed income businesses
Complementary Limited Sales, Sterne Credit Structured Investment High Over Convertibles Pro Full Widespread Offices 42 Forma forma suite Yield 700 Trading, Agee’s Agee Products throughout in overlap professionals of the revenues Products Securities Grade distribution products furnishes U.S., fixed F
Slide 43: Non-Core Items, Three Months Actual
Non-Core Three Actual ($ Existing Acacia De Keefe, Knight 1919 Miller Oriel Ziegler Intangible Stock-based Duplicative Sterne Total (1) 43 in Assumes Lathousands) Investment Deal Securities months Rosa Agee Buckfire Bruyette Estimate Federal Fixed Capital acquisitions Deal amortization Costs operati
Stifel Financial — Investor Presentation (March 2015) on 6ix