Stifel Financial Corporation · NYSE:SF

Stifel Financial — Goldman Sachs US Financial Services Conference 2016

37 slides from Stifel Financial's conference presentation, Dec 7, 2016

  1. Slide 1: Investor Presentation

    Investor Presentation Goldman Sachs US Financial Services Conference December 7, 2016

  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 2,280 financial $27B in total $11.2B in Experienced Comprehe

  5. Slide 5: A History of Growth

    A History of Growth 2015 2016 Barclays Wealth & Investment Eaton Partners Management, ISM Capital Sterne Agee, 2014 Sidoti Joint Venture, De La Rosa, Leumi Partners Collaboration Oriel Securities, Agreement 1919 Investment Counsel, Merchant Capital 2013 Acacia Bank & Ziegler 2013 Lotsoff Knight Capi

  6. Slide 6: Driving Shareholder Value Through Deal Integration & Balance Sheet Growth

    Driving Shareholder Value Through Deal Integration & Balance Sheet Growth 6

  7. Slide 7: Balance Sheet Growth

    Balance Sheet Growth $20,000 $18,000 $17,205 $15,386 $15,000 $14,214 $13,326 Infrastructure Total Assets in Millions Build $9,518 $9,359 $10,000 $9,009 $6,966 $4,952 $5,000 $4,213 $3,167 $1,558 $- 2008 2009 2010 2011 2012 2013 2014 3Q15 4Q15 1Q16 2Q16 3Q16 Illustrative Ratio 2008 2009 2010 2011 2012

  8. Slide 8: Bank Drove Significant Balance Sheet & Revenue Growth

    Bank Drove Significant Balance Sheet & Revenue Growth Impact of Bank Growth LTM on Consolidated Results Bank growth has been balanced between loans and investments: (mil.) 9/30/2015 9/30/2016 Loans: Total consolidated assets $9,359 $17,205 • Comprised of securities based loans, C&I, and Investment s

  9. Slide 9: Stifel Overview

    Stifel Overview STIFEL

  10. Slide 10: Stifel – Premier Investment Bank and Wealth Management Firm

    Stifel – Premier Investment Bank and Wealth Management Firm Stifel at a Glance GAAP Net Revenue - $2,495 million (Q3’16 LTM) Global Wealth Management (GWM) Institutional Group (IG) Net Revenue - $1,503 million (Q3’16 LTM) Net Revenue - $1,007 million (Q3’16 LTM)  Private Client  Equity & Fixed Inc

  11. Slide 11: 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

  12. Slide 12: Well-diversified, Low Risk Business Model

    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

  13. Slide 13: A Stable Track Record Through Multiple Business Cycles

    A Stable Track Record Through Multiple Business Cycles Non-GAAP Net Revenues ($MM)(1) (2) Non-GAAP Net Income ($MM)(1)(2) Total Equity ($MM) (1)(2) $3,200 $250 $2,800 $2,692 $2,550 $210 $2,492 $2,500 $2,332 $2,213 $193 $200 $2,400 $2,320 $200 $185 $1,978 $2,059 $2,000 $2,000 $1,594 $150 $145 $1,417

  14. Slide 14: Global Wealth Management

    Global Wealth Management STIFEL

  15. Slide 15: 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 nearly 2,300 financial advisors currently  Proven organic growth and acquirer of private client business  Strategy of recruiting

  16. Slide 16: Building Scale and Capabilities into a $1.5B Revenue Segment

    Building Scale and Capabilities into a $1.5B Revenue Segment  ~100 advisors managing over $20B in AUM  December 2015  ~130 advisors managing ~ $10B in AUM  June 2015  Customized investment advisory and trust services  November 2014 Private Client  Private Client – 350 financial advisors and s

  17. Slide 17: GWM - Private Client Group

    GWM - Private Client Group Key Operating Metrics Financial Advisors(1) Branches(1) 3,000 450 400 2,500 2,291 361 359 2,280 2,077 2,103 350 330 1,987 2,041 317 1,935 307 2,000 1,885 291 300 285 272 1,500 250 1,315 1,163 196 200 1,000 148 735 150 111 500 100 50 0 0 2006 2007 2008 2009 2010 2011 2012 2

  18. Slide 18: GWM – Stifel Bank & Trust

    GWM – Stifel Bank & Trust Overview Key Statistics (000s) (4)  Acquired FirstService Bank, a St. Louis-based, Missouri- Total assets $11,207,000 chartered commercial bank, in April 2007 Total deposits 9,885,000  Stifel Financial became a bank holding company and Total equity 740,000 financial servi

  19. Slide 19: Growing Asset Management Capabilities

    Growing Asset Management Capabilities Asset Management Subsidiaries¹ with $27.2 Billion in Client Assets Assets $11.6 Billion $10.7 Billion $2.6 Billion $1.4 Billion Chicago Baltimore St. Louis Cincinnati Offices Milwaukee New York Baltimore Florham Park, NJ New York Philadelphia San Francisco ¹Stif

  20. Slide 20: Institutional Group

    Institutional Group STIFEL

  21. Slide 21: Institutional Group

    Institutional Group Overview Net Revenues ($MM)(3)(4)  Provides securities brokerage, trading, research, $1,200 underwriting and corporate advisory services $997 $976 $1,014 Largest provider of U.S. Equity Research $900 $861   2nd largest Equity trading platform in the U.S. outside of the $600 $5

  22. Slide 22: Building Scale and Capabilities into a $1.0B Revenue Segment

    Building Scale and Capabilities into a $1.0B Revenue Segment  Growth Focused Investment Banking, Research, Sales and Trading  July 2010  Core of our Institutional sales, trading and research group  December 2005  Enhances European debt capital markets capabilities  February 2016 Equities  Hig

  23. Slide 23: Institutional Group – Investment Banking

    Institutional Group – Investment Banking 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 1,469 $827.6 1

  24. Slide 24: Institutional Group – Research

    Institutional Group – Research Largest U.S. Equity Research Platform U.S. Equity Research Coverage (1) Stifel Research Highlights Companies Under Coverage Firm Overall Mid Cap Small Cap  Largest provider of U.S. Equity Research Stifel/KBW 1,282 455 422 JPMorgan 1,115 414 177  Largest provider of U

  25. Slide 25: Institutional Group – Equity Sales and Trading

    Institutional Group – Equity Sales and Trading Powerful Platform Spanning North America and Europe Institutional Equity Sales Equity Trading  84 person sales force, commission-based  34 sales traders located in  Experts in small and mid cap growth and value  Baltimore, New York, Boston, Dallas,

  26. Slide 26: Institutional Group – Fixed Income Capital Markets

    Institutional Group – Fixed Income Capital Markets Strong Fixed Income Brokerage Capabilities Overview Client Distribution (1)(2)  Comprehensive platform Insurance Trust Company 1% Other 2% Broker/Dealer 88 traders with annual client trade volume approaching Company 7% 7%  Corporation 1% $500 bill

  27. Slide 27: Institutional Group – Public Finance

    Institutional Group – Public Finance Overview  Stifel has ranked in the top ten nationally  Specialty sectors: for senior managed negotiated Education underwritings for the past five years, and  Stifel has ranked #1 nationally for senior  Local Government/Municipal managed K-12 negotiated underw

  28. Slide 28: Financial Information

    Financial Information STIFEL 28

  29. Slide 29: 3rd Quarter Highlights

    3rd Quarter Highlights Financial Highlights Three Months Ended Non-GAAP (000s, except per share data) 3Q16 3Q15 2Q16 3Q16 U.S. GAAP Net revenues $641,986 $591,575 $652,143 $645,767 Compensation ratio 67.6% 68.3% 70.5% 62.5% Non-compensation ratio 28.0% 27.9% 27.0% 23.5% Pre-tax operating margin 4.4%

  30. Slide 30: Merger Related Expenses & Duplicative Expenses

    Merger Related Expenses & Duplicative Expenses Actual Initial Three Months b Estimate (in $000s) 2015A 9/30/2016 12/31/2016E 2016E 2017E Total Total Acquisitions Barclays $12,854 $29,715 $4,900 $86,347 $15,500 $114,701 $115,000 Sterne Agee $102,037 $13,610 $44,401 $146,438 $126,500 Other $46,391 $3,

  31. Slide 31: Brokerage & Investment Banking Revenue

    Brokerage & Investment Banking Revenue Global Wealth Mangement: Three Months Ended (000s) 3Q16 3Q15 % Change 2Q16 % Change Global Wealth Mangement brokerage revenue $165,476 $169,319 -2.3% $172,178 -3.9% Institutional brokerage: Equity 51,004 59,769 -14.7% 55,008 -7.3% Fixed income 71,794 60,588 18.

  32. Slide 32: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation Three months ended September 30, 2016 Three months GAAP to Non-GAAP Reconciliation for Third Quarter 2016 GAAP Results ended (000s) 09/30/16 (000s) 09/30/16 GAAP Net Income $17,814 Total GAAP Compensation & benefits expense $434,236 Preferred Dividend 1,563 GAAP comp.

  33. Slide 33: Balance Sheet & Net Interest Margin

    Balance Sheet & Net Interest Margin Net Interest Income Drivers Net Interest Income Drivers: $14,000 3.00% • Total assets increased to $17.2 bil. up 12% $12,000 sequentially & 84% Y/Y $10,000 2.50% • Average interest earning assets increased to Av g. IEA (mil.) $8,000 $12.2 bil. up 13% sequentially

  34. Slide 34: Segment Results

    Segment Results STIFEL

  35. Slide 35: Global Wealth Management

    Global Wealth Management $500 GWM Net Revenue • Net revenue in the GWM segment was $390 mil., $400 up 1% sequentially & 9% Y/Y Net Revenue (mil) $300 • Brokerage revenue declined 4% $200 sequentially & 2% Y/Y • Ex. Sterne IBC & Clearing, Brokerage $100 revenue increased 4% sequentially $0 • Net inte

  36. Slide 36: Stifel Bank & Trust

    Stifel Bank & Trust Stifel Bank % % (mil. except for %'s) 3Q16 3Q15 Change 2Q16 Change Assets: Investments $5,377 $1,750 207% $4,580 17% Mortgage Loans 1,819 272 569% 1,242 46% Commercial Loans 1,824 1,261 45% 1,684 8% Securities Based Loans 1,452 1,004 45% 1,419 2% Consumer 93 22 323% 36 158% Total

  37. Slide 37: Institutional Group GAAP Net Revenue

    Institutional Group Institutional Group Net Revenue $300 • Total net revenue of $259 mil. decreased 1% GAAP Net Revenue (mil.) $250 sequentially but increased 11% Y/Y • Investment banking revenue of $133 mil. increased 7% sequentially & 22% Y/Y $200 $150 • Equity underwriting of $21 mil. decreased $

Stifel Financial — Goldman Sachs US Financial Services Conference 2016 on 6ix