Slide 1: 2nd Quarter 2014 Financial Results Presentation
Exhibit 99.2 nd 2 Quarter 2014 Financial Results Presentation August 6, 2014
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
Slide 3: Chairman’s Comments
Chairman’s Comments “We are pleased with the performance of our private client and investment banking groups, which contributed nicely to our results in a challenging market environment. Our global wealth management segment posted record net revenues and record pre-tax operating contributions in the
Slide 4: Market Overview
Market Overview Market Valuations Rates Volatility / Volumes Flows Underwriting Volumes and M&A Equity Municipal U.S. U.S. U.S. 10yr Equity Corporate Mutual U.S. ECM U.S. DCM Bond DCMAnnounced Completed Period S&P 500 Dow Yield VIX ADV Bond ADV Fund ($) ($) ($) ($) M&A ($) M&A ($) 2014 Q2 1,960 16,8
Slide 5: Financial Results
Financial Results
Slide 6: Stifel Financial Corp. Results
Stifel Financial Corp. Results Three months ended June 30, 2014 Three Months Ended June 30, 2014 Three Months Ended (1) (2) (2) ($ in thousands, except per share amounts) Non-GAAP Non-Core GAAP 6/30/13 % Change 3/31/14 % Change Total revenues $ 570,543 $ (1,554) $ 568,989 $ 508,022 12.3% $ 557,288 2
Slide 7: Stifel Financial Corp. Results
Stifel Financial Corp. Results Six months ended June 30, 2014 Six Months Ended June 30, 2014 Six Months Ended (1) (2) ($ in thousands, except per share amounts) Non-GAAP Non-Core GAAP 6/30/13 % Change Total revenues $ 1,127,831 $ (3,465) $ 1,124,366 $ 957,202 17.8% Interest expense 17,901 (428) 17,4
Slide 8: Source of Revenues
Source of Revenues Three Months Ended Six Months Ended % % % ($ in thousands) 6/30/14 6/30/13 Change 3/31/14 Change 6/30/14 6/30/13 Change Commissions $ 152,712 $ 154,795 (1.3%) $ 159,416 (4.2%) $ 312,128 $ 300,662 3.8% Principal transactions 125,676 111,306 12.9% 126,461 (0.6%) 252,137 218,570 15.4
Slide 9: Brokerage & Investment Banking Revenues
Brokerage & Investment Banking Revenues Three Months Ended Six Months Ended ($ in thousands) 6/30/14 6/30/13 % Change 3/31/14 % Change 6/30/14 6/30/13 % Change Global Wealth Management $ 161,780 $ 160,889 0.6% $ 161,505 0.2% $ 323,285 $ 319,262 1.3% Institutional Group Equity brokerage 62,087 64,273
Slide 10: Core Non-Interest Expenses
Core Non-Interest Expenses Three months ended June 30, 2014 Three Months Ended % of Net revenues (1) (1) ($ in thousands) 6/30/14 6/30/13 % Change 3/31/14 % Change 6/30/14 6/30/13 3/31/14 Net revenues $ 561,495 $ 495,414 13.3% $ 548,435 2.4% 100.0% 100.0% 100.0% Compensation and benefits 328,380 290
Slide 11: Core Non-Interest Expenses
Core Non-Interest Expenses Six months ended June 30, 2014 Six Months Ended % of Net revenues (1) (1) ($ in thousands) 6/30/14 6/30/13 % Change 6/30/14 6/30/13 Net revenues $ 1,109,930 $ 934,026 18.8% 100.0% 100.0% Compensation and benefits 649,415 550,812 17.9% 58.5% 59.1% (2) Transitional pay 48,82
Slide 12: Non-Core Deal Costs
Non-Core Deal Costs Three Months Ended Actual Estimate ($ in thousands) 3/31/14 6/30/14 9/30/14 12/31/14 Acquisitions Acacia Federal Savings Bank $ 1,723 $ 2,762 De La Rosa & Co., Inc. 130 765 Keefe, Bruyette & Woods, Inc. 1,008 1,657 Knight Fixed Income 2,407 94 Miller Buckfire & Co., LLC 1,172 1,2
Slide 13: Segment Comparison Core
Segment Comparison Core - Three Months Ended Six Months Ended % % % ($ in thousands) 6/30/14 6/30/13 Change 3/31/14 Change 6/30/14 6/30/13 Change Net revenues: Global Wealth Management $ 307,247 $ 282,717 8.7% $ 297,183 3.4% $ 604,430 $ 549,674 10.0% Institutional Group 255,712 215,444 18.7% 249,977
Slide 14: Non Comp Operating Expenses by Segment Core
Non Comp Operating Expenses by Segment Core - Three Months Ended Six Months Ended % % % ($ in thousands) 6/30/14 6/30/13 Change 3/31/14 Change 6/30/14 6/30/13 Change Non-comp operating expenses: Global Wealth Management $ 46,425 $ 40,637 14.2% $ 43,339 7.1% $ 89,764 $ 80,499 11.5% Institutional Grou
Slide 15: Global Wealth Management
Global Wealth Management Three Months Ended Six Months Ended ($ in thousands) 6/30/14 6/30/13 % Change 3/31/14 % Change 6/30/14 6/30/13 % Change Commissions $ 107,438 $ 104,576 2.7% $ 107,739 (0.3%) $ 215,177 $ 206,662 4.1% Principal transactions 54,342 56,313 (3.5%) 53,766 1.1% 108,108 112,620 (4.0
Slide 16: Stifel Bank & Trust
Stifel Bank & Trust (an operating unit of GWM) As of 6/30/14 As of 6/30/13 As of 3/31/14 % Change Actual ($) Yield (%) Actual ($) Yield (%) Actual ($) Yield (%) Q214 v Q213Q214 v Q114 Assets Federal funds sold 132,152 0.37 110,514 0.24 181,438 0.55 19.6 (27.2) (1) Investment securities 2,915,235 2.4
Slide 17: Institutional Group
Institutional Group Three Months Ended Six Months Ended ($ in thousands) 6/30/14 6/30/13 % Change 3/31/14 % Change 6/30/14 6/30/13 % Change Net revenues $ 255,712 $ 215,444 18.7% $ 249,977 2.3% $ 505,689 $ 388,744 30.1% Compensation and benefits 157,499 132,397 19.0% 154,016 2.3% 311,515 239,218 30.
Slide 18: Financial Condition
Financial Condition
Slide 19: Capital Structure
Capital Structure As of June 30, 2014 (in thousands, except ratios) ($ in thousands) Total Assets $ 9,575,012 Stockholders' Equity $ 2,173,191 6.70% senior notes, due 2022 $ 175,000 5.375% senior notes, due 2022 150,000 Debentures to Stifel Financial Capital Trusts II, III, & IV 82,500 Total Capital
Slide 20: Other Financial Data
Other Financial Data As of As of 6/30/14 6/30/13 % Change 3/31/14 % Change Total assets (000s): Stifel Nicolaus & Stifel Financial $ 4,524,976 $ 4,186,744 8.1% $ 4,393,599 3.0% Stifel Bank 5,050,036 4,306,447 17.3% 4,994,215 1.1% Total assets $ 9,575,012 $ 8,493,191 12.7% $ 9,387,814 2.0% Total shar
Slide 21: Acquisition Updates
Acquisition Updates Expected to close in the fourth quarter 2014 Working through customary regulatory, mutual fund Investment Counsel conversion, and account change processes Closed July 31, 2014 Business as usual through the balance of 2014 Integration and conversion efforts scheduled for Q1 2015 C
Slide 22: Acquisition Updates
Acquisition Updates Closed November 30, 2013 Strong asset and earnings growth since the acquisition New asset management strategies and coordinated marketing with Stifel’s existing asset management platform Closed October 31, 2013 Single branch location closed; Cost saving targets fully achieved >5%
Slide 23: Q&A
Q&A