Stifel Financial Corporation · NYSE:SF

Stifel Financial — Investor Presentation (November 2020)

39 slides from Stifel Financial's investor presentation, Nov 12, 2020

  1. Slide 1: Investor Presentation

    Investor Presentation November 12, 2020

  2. Slide 2: Disclaimer

    Disclaimer 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 futu

  3. Slide 3: Our Strategy

    Our Strategy STIFEL

  4. Slide 4: Strategic Vision

    Strategic Vision To build a premier wealth management and investment banking firm Global Wealth Management Institutional Private Asset Bank Equities Fixed Investment Research Client Management Sales + Income Banking Trading Sales + Trading 2,271 financial $27B in total $17.9B in assets Experienced s

  5. Slide 5: A History of Organic Growth & Acquisitions

    A History of Organic Growth & Acquisitions 2019 2018 First Empire Ziegler Wealth MainFirst 2017 Mooreland Partners City Management, 2016 Business GMP Eaton Partners Securities George K. Baum Bancshares Inc. 2015 ISM Capital B&F Capital Markets Barclays Wealth & 2014 Investment Management, De La Rosa

  6. Slide 6: Stifel Overview

    Stifel Overview STIFEL

  7. Slide 7: Stifel – Premier Investment Bank and Wealth Management Firm

    Stifel – Premier Investment Bank and Wealth Management Firm Stifel at a Glance 2019 GAAP Net Revenue - $3.3 billion Global Wealth Management (GWM) Institutional Group (IG) 2019 Net Revenue - $2.1 billion 2019 Net Revenue - $1.2 billion  Private Client  Equity & Fixed Income Capital Raising  Stife

  8. Slide 8: Leading broker-dealer providing wealth management and institutional services

    Leading broker-dealer providing wealth management and institutional services to consumers and companies Bulge Bracket Boutique  Size / scale  Firm focus  Large distribution  Good research  Size / scale  Trading  Growth investor access  Firm focus  Retail Issues  Stability (financial & pers

  9. Slide 9: Well-diversified, Low Risk Business Model with Balanced Retail and Institutional Exposure

    Well-diversified, Low Risk Business Model with Balanced Retail and Institutional Exposure  Unburdened by capital constraints  Low leverage business model and conservative risk management  Limited balance sheet risk  Stable wealth management business is augmented by profitable and growing institu

  10. Slide 10: A Stable Track Record Through Multiple Business Cycles

    A Stable Track Record Through Multiple Business Cycles Non-GAAP Net Revenues(1)(4) ($MM) Total Equity(1) ($MM) $4,000 $4,500 $4,031 $3,500 $3,337 $4,000 $3,025 $3,615 $2,928 $3,000 $3,500 $3,168 $2,580 $2,335 $3,000 $2,862 $2,500 $2,213 $2,738 $2,492 $1,978 $2,500 $2,320 $2,000 $2,059 $1,594 $2,692

  11. Slide 11: Balance Sheet Growth

    Balance Sheet Growth $30,000 $25,896 $25,624 $24,520 $25,549 $24,610 $25,000 $21,384 $19,129 $20,000 Total Assets in Millions $15,000 $13,326 $9,518 $9,009 $10,000 $6,966 $4,952 $4,213 $5,000 $- 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20 3Q20 2010 2011 2012 2013 2014 2015 2016 2017

  12. Slide 12: Global Wealth Management

    Global Wealth Management STIFEL

  13. Slide 13: Global Wealth Management (GWM)

    Global Wealth Management (GWM) Provides Securities Brokerage Services and Stifel Bank Products Overview National Presence  Grown from 600+ financial advisors in 2005 to 2,271 financial advisors currently  Proven organic growth and acquirer of private client business  Strategy of recruiting experi

  14. Slide 14: Building Scale and Capabilities into a $2.1 Billion Revenue Segment

    Building Scale and Capabilities into a $2.1 Billion Revenue Segment Private Client Bank 56 UBS Branches 14

  15. Slide 15: GWM - Private Client Group

    GWM - Private Client Group Key Operating Metrics Financial Advisors(1)(2)(3) Branches(1)(2) 450 2,500 2,291 2,282 2,244 2,271 393 2,222 400 382 2,103 2,152 369 2,041 2,077 361 360 355 1,987 2,000 1,935 350 330 307 317 285 291 300 1,500 250 200 1,000 150 100 500 50 0 0 2010 2011 2012 2013 2014 2015 2

  16. Slide 16: GWM – Stifel Bancorp, Inc.

    GWM – Stifel Bancorp, Inc. Overview Key Statistics (000s) (1)(2)  Acquired FirstService Bank, a St. Louis-based, Missouri- Total assets $17,855 chartered commercial bank, in April 2007 Total deposits 16,400  Stifel Financial became a bank holding company and Total equity 1,379 financial services h

  17. Slide 17: Growing Asset Management Capabilities

    Growing Asset Management Capabilities Asset Management Subsidiaries with $27.2 Billion in Client Assets Assets $16.4 Billion $3.6 Billion $7.2 Billion Baltimore Birmingham Cincinnati Baltimore Florham Park, NJ Offices Dallas Boston San Francisco Houston New York Philadelphia San Francisco Vero Beach

  18. Slide 18: Institutional Group

    Institutional Group STIFEL

  19. Slide 19: Institutional Group

    Institutional Group Overview Net Revenues ($MM)(2)(3)  Provides securities brokerage, trading, research, underwriting and $1,500 corporate advisory services $1,200 $1,214 $1,111 $1,055 Largest provider of U.S. Equity Research $997 $1,014  $861 $976 $900  3rd largest U.S Investment bank by U.S. eq

  20. Slide 20: Building Scale and Capabilities into a $1.2 Billion Revenue Segment

    Building Scale and Capabilities into a $1.2 Billion Revenue Segment Investment Banking Fixed Income Equities Knight GMP 20

  21. Slide 21: Institutional Group – Advisory

    Institutional Group – Advisory 2010-2020: Leadership in M&A of Public Companies and deals < $1bn. All Deals < $1 Billion in Value Public Deals < $1 Billion in Value Rank Investm ent B ank Sel l -side B uy-side Total Val ue Rank Investment Bank Sel l -side Buy-side Total Val ue 1 Stifel 443 413 8 5 6

  22. Slide 22: Institutional Group – Equity Underwriting

    Institutional Group – Equity Underwriting Accomplished U.S. Equity Underwriting Franchise – All Equity Transactions All Managed Equity Deals Since 2010 Bookrun Equity Deals Since 2010 ($ in billions) # of $ ($ in billions) # of $ Rank Firm Deals Volume Rank Firm Deals Volume 1 JPMorgan 2,361 $1,301.

  23. Slide 23: Institutional Group – Research

    Institutional Group – Research Largest U.S. Equity Research Platform U.S. Equity Research Coverage (1)(2) Stifel Research Highlights Com panies Under Cover age  2nd largest provider of U.S. Equity Research Rank Fir m Over al l Mid Cap Sm al l Cap 1 JPMorgan 1,165 399 153  #1 U.S. provider of Finan

  24. Slide 24: Institutional Group – Equity Sales and Trading

    Institutional Group – Equity Sales and Trading Powerful Platform Spanning North America and Europe Institutional Equity Sales Equity Trading  116 person sales force  49 sales traders located in Baltimore, New York, Boston, San  Experts in small and mid cap growth and value Francisco, Geneva, Lond

  25. Slide 25: Institutional Group – Fixed Income Capital Markets

    Institutional Group – Fixed Income Capital Markets Strong Fixed Income Brokerage Capabilities Institutional Fixed Income Sales Institutional Fixed Income Trading  Comprehensive platform  Unmatched distribution network for clients, issuers and  80+ traders with annual client trade volume more than

  26. Slide 26: Institutional Group – Public Finance

    Institutional Group – Public Finance Overview  Stifel has been growing its public finance  Total of 36 Public Finance offices practice both organically and through  Nearly 200 Public Finance professionals acquisitions over the past seven years  Specialty sectors: including De La Rosa, Merchant C

  27. Slide 27: Third Quarter 2020 Results

    Third Quarter 2020 Results 27

  28. Slide 28: Third Quarter Snapshot

    Third Quarter Snapshot 3Q20 RESULTS millions, except per share and ratios NET REVENUES NET EARNINGS EPS GAAP & NON-GAAP $883.3 GAAP $110.6 NON-GAAP $120.5 GAAP $1.46 NON-GAAP $1.59 ANNUALIZED ROE ANNUALIZED ROTCE BOOK VALUE PER SHARE GAAP 12.8% NON-GAAP 14.0% GAAP 20.4% NON-GAAP 22.2% TBV $32.34 BV

  29. Slide 29: Third Quarter Results

    Third Quarter Results FINANCIAL RESULTS THIRD QUARTER HIGHLIGHTS Sequential millions 3Q20 Y/Y Change YTD VS 2019 Third quarter Non-GAAP Net Revenue of $883 million, up 8% Y/Y Change ■ Global Wealth Management $527 -1% 4% $1,616 2% ■ Institutional Group Revenue of $363 million, up 25% Y/Y ■ Record Ca

  30. Slide 30: Global Wealth Management

    Global Wealth Management GLOBAL WEALTH MANAGEMENT REVENUE HIGHLIGHTS Sequential millions 3Q20 Y/Y Change Change YTD VS 2019 ■ Record first 9-Month Net Revenue of $1.6 billion, up 2% Y/Y Brokerage $163 2% 2% $502 6% ■ Third Quarter Pre-tax Margin of 34%, up 310 bps sequentially Asset Management & Ser

  31. Slide 31: Wealth Management Metrics

    Wealth Management Metrics RECRUITING DRIVES REVENUE GROWTH DYNAMIC BUSINESS $250 275 ■ 85% of FAs joined Stifel in past 10 years came through organic 250 recruiting, 15% through acquisitions $200 225 Financial Advisors 200 ■ Recruiting remotely during pandemic 175 $150 millions 150 ■ Growth of avera

  32. Slide 32: Institutional Group

    Institutional Group INSTITUTIONAL GROUP REVENUE HIGHLIGHTS Sequential millions 3Q20 Y/Y Change YTD VS 2019 Change ■ Record first 9-Month Revenue of $1.1 billion, up 33% Y/Y Advisory $81 -23% -17% $255 -13% ■ Record first 9-Month Capital Raising Revenue, up 52% Y/Y Capital Raising $129 54% 16% $333 5

  33. Slide 33: Institutional Equities & Fixed Income

    Institutional Equities & Fixed Income INSTITUTIONAL EQUITIES REVENUE INSTITUTIONAL FIXED INCOME REVENUE Sequential Sequential millions 3Q20 Y/Y Change YTD VS 2019 millions 3Q20 Y/Y Change YTD VS 2019 Change Change Brokerage $54 32% -14% $187 56% Brokerage $97 60% -20% $317 70% Capital Raising $78 48

  34. Slide 34: Investment Banking Revenue

    Investment Banking Revenue INVESTMENT BANKING REVENUE HIGHLIGHTS Sequential millions 3Q20 Y/Y Change YTD VS 2019 ■ Third Strongest Investment Banking Quarter Change Capital Raising: ■ Record Capital Raising Quarter ■ Strongest Verticals were Healthcare, Technology, & Industrials Equity $85 41% 21% $

  35. Slide 35: Net Interest Income

    Net Interest Income CONDENSED NET INTEREST INCOME NET INTEREST COMMENTARY 3Q20 Y/Y Change Sequential Change ■ 3Q20 NII within previous guidance range, but negatively impacted by Average Average Average Average Average Average increased cash balances. Balance Interest Balance Interest Balance Interes

  36. Slide 36: Stifel Bancorp Inc. Loan & Investment Portfolio

    Stifel Bancorp Inc. Loan & Investment Portfolio LOAN PORTFOLIO COMMERCIAL PORTFOLIO BY SECTOR % of Total millions 3Q20 Portfolio Residential Real Estate $3,805 30% Financials $852 7% Securities Based Lending 1,842 14% Industrials 665 5% Home Equity lines of Credit & Other $107 1% Consumer Discretion

  37. Slide 37: CECL & Credit Metrics

    CECL & Credit Metrics ASSUMPTIONS CECL 3Q20 FACTORS Portfolio Economic • Moody’s Forecast Economic Changes Factors • 40% Baseline (gradual recovery) Factors $5.1 ($6.4) - New loans, • 30% Downside (double dip recession) Portfolio $13.2 less - Changes to Changes macro- • 30% Upside (accelerated recov

  38. Slide 38: Capital & Liquidity

    Capital & Liquidity FIRM-WIDE ASSETS & CAPITAL RATIOS HIGHLIGHTS $25,896 $26,000 $25,624 $25,549 25.0% ■ Sweep Balances Continued to Increase in 3Q20 23.0% ■ Capital Ratios Consistent with 2Q20 $25,000 $24,610 21.0% $24,161 ■ Projecting No Material Change in the Size or Composition of the Balance 19

  39. Slide 39: Expenses & Fourth Quarter Guidance

    Expenses & Fourth Quarter Guidance NON-GAAP EXPENSES & PRE-TAX INCOME EXPENSE RATIOS Sequential millions 3Q20 Y/Y Change YTD VS 2019 63% 25% Change Non-compensation Ratio 62% Compensation Ratio Compensation $527 10% -2% $1,635 17% 20% 61% 62.5% Ex. IB Gross Up & Loan Loss Provision $173 3% 4% $527 7

Stifel Financial — Investor Presentation (November 2020) on 6ix