Slide 1: 1st Quarter 2011 Financial Results Presentation
1st Quarter 2011 Financial Results Presentation May 9, 2011
Slide 2: Forward-Looking Statements
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
Slide 3: Chairman's Comments
Chairman’s Comments Ronald J. Kruszewski, Chairman, President and Chief Executive Officer of Stifel Financial Corp. commented: “Following our record fourth quarter results, the first quarter of 2011 proved to be our second best quarter in terms of net revenues, net income and diluted EPS. We also ac
Slide 4: Financial Results
Financial Results
Slide 5: Stifel Financial Corp. Results
Stifel Financial Corp. Results Three months ended March 31, 2011 Three Months Ended March 31, 2011 Three Months Ended Merger- 12/31/10 Related 3/31/10 % (Non- % (1) (2) (2) ($ in thousands, except per share amounts) GAAP Charges Non-GAAP (GAAP) Change GAAP) Change Net revenues $ 366,613 $ 6 $ 366,61
Slide 6: Source of Revenues
Source of Revenues Quarter Ended % % ($ in thousands) 3/31/11 3/31/10 Change 12/31/10 Change Revenues Commissions $ 155,786 $ 105,035 48.3% $ 139,605 11.6% Principal transactions 92,859 117,420 (20.9%) 89,996 3.2% Asset mgt and service fees 57,680 41,103 40.3% 57,042 1.1% Investment banking 41,418 3
Slide 7: Principal Transactions Revenues
Principal Transactions Revenues Quarter Ended % % ($ in thousands) 3/31/11 3/31/10 Change 12/31/10 Change Taxable debt $ 51,419 $ 64,691 (20.5%) $ 46,924 9.6% Municipal debt 19,538 16,842 16.0% 18,520 5.5% Equities 11,623 22,284 (47.8%) 11,396 2.0% Other 10,279 13,603 (24.4%) 13,156 (21.9%) $ 92,859
Slide 8: Investment Banking Revenues
Investment Banking Revenues Quarter Ended % % ($ in thousands) 3/31/11 3/31/10 Change 12/31/10 Change Capital raising $ 32,358 $ 25,307 27.9% $ 50,404 (35.8%) Advisory 9,060 8,914 1.6% 40,571 (77.7%) $ 41,418 $ 34,221 21.0% $ 90,975 (54.5%) 7
Slide 9: Non-Interest Expenses
Non-Interest Expenses Three months ended March 31, 2011 Quarter Ended % of Net revenues Non-GAAP GAAP Non-GAAP ($ in thousands) 3/31/11 3/31/10 % Change 12/31/10 % Change 3/31/11 3/31/10 12/31/10 Net revenues $ 366,619 $ 312,030 17.5% $ 402,787 (9.0%) 100.0% 100.0% 100.0% Compensation and benefits 2
Slide 10: TWPG Merger-Related Expenses
TWPG Merger-Related Expenses Nine Months Ended Quarter Ended 12/31/10 3/31/11 6/30/11 ($ in thousands) Estimate Actual Estimate Actual Estimate Operating expenses: Compensation and benefits $ 180,850 $ 186,034 (1) $ - $ (244) - (2) Non-comp operating expenses 24,700 19,011 5,000 2,705 3,000 (3) Tota
Slide 11: Segment Comparison
Segment Comparison Quarter Ended Non-GAAP GAAP Non-GAAP ($ in thousands) 3/31/11 3/31/10 % Change 12/31/10 % Change Net revenues: Global Wealth Management $ 238,446 $ 199,421 19.6% $ 236,424 0.9% Institutional Group 126,994 113,292 12.1% 165,902 (23.5%) Other 1,179 (683) 272.5% 461 155.8% $ 366,619
Slide 12: Global Wealth Management
Global Wealth Management Quarter Ended ($ in thousands) 3/31/11 3/31/10 % Change 12/31/10 % Change Commi s s ions $ 101,762 $ 79,587 27.9% $ 92,558 9.9% Pri nci pa l tra ns a cti ons 56,163 59,871 (6.2%) 58,520 (4.0%) As s et ma na gement & s ervi ce fees 57,530 40,894 40.7% 56,953 1.0% Net i nteres
Slide 13: Stifel Bank & Trust
Stifel Bank & Trust (an operating unit of GWM) Quarter Ended ($ in thousands) 3/31/11 3/31/10 % Change 12/31/10 % Change Net revenues: Interest 11,203 8,087 38.5% 9,287 20.6% Other income 1,932 2,113 (8.6%) 3,553 (45.6%) Total revenues 13,135 10,200 28.8% 12,840 2.3% Interest expense 4,237 448 845.8
Slide 14: Stifel Bank & Trust: Low Risk Asset Growth Strategy & Opportunity
Stifel Bank & Trust (an operating unit of GWM) Low Risk Asset Growth Strategy & Opportunity Assets of $1.8 billion as of March 31, 2011 remained consistent Maintain solid asset quality: with December 31, 2010. Non-performing loans to gross loans of 0.19% Investment portfolio of $1.2 billion,
Slide 15: Institutional Group
Institutional Group Quarter Ended ($ in thousands) 3/31/11 3/31/10 % Change 12/31/10 % Change Commi s s i ons $ 54,025 $ 25,448 112.3% $ 47,047 14.8% Pri nci pa l tra ns a cti ons 36,696 57,549 (36.2%) 35,564 3.2% Inves tment ba nki ng 35,106 28,918 21.4% 81,583 (57.0%) (1) Other i ncome 1,167 1,377
Slide 16: Institutional Group Revenues
Institutional Group Revenues Quarter Ended % of Net Revenues ($ in thousands) 3/31/11 3/31/10 % Change 12/31/10 % Change 3/31/11 3/31/10 12/31/10 Sales and trading: Equity $ 52,398 $ 38,651 35.6% $ 46,521 12.6% 41.2% 34.2% 28.0% Fixed income 38,323 44,346 (13.6%) 36,090 6.2% 30.2% 39.1% 21.8% 90,721
Slide 17: Financial Condition
Financial Condition
Slide 18: Statement of Financial Condition
Statement of Financial Condition As of March 31, 2011 Total Assets ($ in Billions) Total Capitalization ($ in Billions) 17 Leverage Ratio Book Value Per Share Per share information adjusted for April 2011 three-for-two stock split
Slide 19: Capital Structure
Capital Structure As of March 31, 2011 ($ in thousands) Total Assets $ 4,537,205 Stockholders' Equity $ 1,287,007 Debentures to: Stifel Financial Capital Trust II - LIBOR plus 1.70%, due 9/30/35 $ 35,000 Stifel Financial Capital Trust III - LIBOR plus 1.85% (fixed at 6.79% until 6/6/12), due 6/6/37
Slide 20: Level 3 Assets
Level 3 Assets Carrying Value ($ in thousands) 3/31/11 12/31/10 (1) Auction Rate Securities (ARS) $ 91,972 $ 94,795 Stifel Bank & Trust Investments 13,000 - Trading Securities 14,555 (2) 40,243 (3) Other Investments 38,606 38,502 Level 3 assets (excluding ARS) 66,161 78,745 Total Level 3 assets $ 15
Slide 21: Other Financial Data
Other Financial Data As of As of 3/31/11 3/31/10 % Change 12/31/10 % Change Total assets (000s): Stifel Nicolaus & Stifel Financial $ 2,749,674 $ 2,112,054 30.2% $ 2,444,310 12.5% Stifel Bank 1,787,531 1,115,329 60.3% 1,773,720 0.8% Total assets $ 4,537,205 $ 3,227,383 40.6% $ 4,218,030 7.6% Total s
Slide 22: 1st Quarter 2011 Financial Results Presentation
1st Quarter 2011 Financial Results Presentation May 9, 2011