Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q4 2009 Earnings Presentation
26 slides from Stifel Financial's earnings presentation, Feb 9, 2010
Slide 1: Stifel Financial Corp. 4th Quarter 2009 Earnings Conference Call
Stifel Financial Corp. 4th Quarter 2009 Earnings Conference Call February 9, 2010
Slide 2: Forward-Looking Statements
Forward-Looking Statements
Slide 3: Chairman's Comments
Chairman’s Comments “In a year of change for our Firm and the entire financial services industry, our associates delivered significantly improved financial performance, which is evident by our achievement of the fourteenth consecutive year of record net revenues and exceeding $1 billion in net reven
Slide 4: 4th Quarter 2009 Highlights
th Quarter 2009 Highlights > Record net revenues of $319 million, a 38% increase from the 4 Quarter of 2008 (4Q08). >» The Global Wealth Management (GWM) segment posted record net revenues of $185 million, a 64% increase from the 4Q08. >» The Capital Markets (CM) segment posted record net revenues o
Slide 5: YTD 2009 Highlights
YTD 2009 Highlights >» Record net revenues of $1.1 billion for the year ended December 31, 2009, a 25% increase from the prior- year period. >» The GWM segment posted record net revenues of $591 million for the year ended December 31, 2009, a 26% increase from the prior-year period. >» The CM segmen
Slide 6: Firm Net Revenues (millions)
Firm Net Revenues (millions) Equity Capita (willions) Share Price Market Cap (millions) Total Associates Global Wealth Management Financial Advisors Branch Support Stifel Bank & Trust Support Associates Offices Capital Markets Equity Sales & Trading Professionals Fixed Income Sales & Trading Profess
Slide 7: Assumes $100 invested on December 31, 2004
Assumes $100 invested on December 31, 2004 in Stifel Financial Corp. common stock, Peer Group and S&P 500 Index —o— Stifel Financial Corp. (33.5% CAGR*) B= Peer Group (6.6% CAGR*) rrr nnn nnn patina nnn ‘a - S&P 500 index (0.4% CAGR*) —s— AMEX Securities Braker/Dealer Index (5.5% CAGR") 2004 2005 20
Slide 8: Stifel Financial Stock Performance Graph
Stifel Financial Stock Performance Graph
Slide 9: Stifel Financial Corp. Income Statements
Stifel Financial Corp. Income Statements
Slide 10: Source of Revenues
Source of Revenues Quarter Ended Year Ended % of Net Revenues % of Net Revenues % % {fim thousanas) qasimp 1731s Change yey09 12/308 | wamp —_19/31os_— Change 728109 12/31/08 Revenues Principal transactions S11G410 $ 92492 259% 36.4% «40.0% | $ 458,188 $ 293285 5.2% © 42.0% © «33.7% Commissions 99,2
Slide 11: Principal Transactions
Principal Transactions (fin thousands) Principal transactions: Taxable debt Mimicipal debt Equities Other Quarter Ended Year Ended % % paves 12/3109 Change | 1731709 = 12/81/09 = Change $ 66210 $ 59,774 108% | $292,400 $184,470 «58.5% 16,102 15,273 5.4% | 65,962 46667 41.3% 21,113 9,002 134.5% | 60,
Slide 12: Stifel Income Statements Non-Interest Expenses
Stifel Income Statements Non-Interest Expenses
Slide 13: Key Items with Negative Impact to Margins
Key Items with Negative Impact to Margins
Slide 14: Segment Comparison
Segment Comparison Quarter Ended Year Ended % % (8 in thousands) 12/31/09 12/31/08 Change 12/31/09 12/31/08 Change Net revenues: Global Wealth Management § 184,704 $ 112683 63.9% |$ 591,323 $ 471,005 25.5% Capital Markets 133,305 113,178 178% 494,092 390,726 26.5% Other 1,458 5,125 (71.5%) 5,221 8,6
Slide 15: YTD Segment Comparison (Excludes Acquisitions)
YTD Segment Comparision (Excludes Acquisitions)
Slide 16: Global Wealth Management Income Statements
Global Wealth Management Income Statements
Slide 17: Stifel Bank & Trust Income Statements
Stifel Bank & Trust Income Statements
Slide 18: Stifel Bank & Trust Balance Sheet
Stifel Bank & Trust Balance Sheet > — Assets increased 242% to $1,142.0 million as of December 31, 2009 from $333.8 million at December 31, 2008. > — Cash and cash equivalents of $114.3 million as of December 31, 2009, an increase of $88.7 million from December 31, 2008 > Investment portfolio increa
Slide 19: Capital Markets Income Statement
Capital Markets Income Statement
Slide 20: Capital Markets Revenues
Capital Markets Revenues Quarter Ended Year Ended % % ($ in thousands) 12/31/09 12/31/08 Change | 12/31/09 12/31/08 Change Sales and trading: Equity $ 38668 S$ 44,268 (12.7%) |$153,267 $ 159,629 (4.0%) Fixed income 47,307 53,226 (11.1%) | 222,005 158,625 40.0% 85,975 97494 (118%) | 375,272 318,254 1
Slide 21: Stifel Financial Balance Sheet Graphs
Stifel Financial Balance Sheet Graphs
Slide 22: Capital Structure
Capital Structure ($ in thousands) Total Assets $ 3,167,356 Stockholders’ Equity $ 873,446 Debentures to: Stifel Financial Capital Trust Il - LIBOR plus 1.70% (fixed at 6.38% until 9/30/10), due 9/30/35 § 35,000 Stifel Financial Capital Trust II - LIBOR plus 1.85% (fixed at 6.79% until 6/6/12), due
Slide 23: Level 3 Assets
Level 3 Assets Carrying Value (8 in thousands) 12/31/09 12/31/08 Change Auction Rate Securities (ARS) s 56,003 18,509 202.6% Stifel Bank & Trust Investments 2,693 10,423 (74.2%) Trading Securities 1,243 4,161 (70.1%) Other Investments 5,426 5,169 5.0% Level 3 assets (excluding ARS) 9,362 19,753 (139
Slide 24: Other Financial Data
Other Financial Data Total assets (000s): Stifel Nicolaus and Stifel Fmancial Stifel Bank Shareholders' equity (000's) Book value per share Fmancial advisors* Fulltime associates Locations Total client assets (00's) * Includes all retail Financial Advisors, As of % Change Q409w. —Q409 ws. 12/31/09 9
Slide 25: Stifel Outlook
Stifel Outlook > Unstable conditions in the private client market presents opportunity for Stifel to continue to grow organically and through M&A >» The uncertainty surrounding the largest domestic and European private client platforms impacts thousands of US-based Financial Advisors. » Success with
Slide 26: Q&A - Questions and Answers
Q&A - Questions and Answers