Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q3 2009 Earnings Presentation
28 slides from Stifel Financial's earnings presentation, Nov 9, 2009
Slide 1: Stifel Financial Corp. 3rd Quarter 2009 Earnings Conference Call
Stifel Financial Corp. 3rd Quarter 2009 Earnings Conference Call November 9, 2009
Slide 2: Forward-Looking Statements
Forward-Looking Statements
Slide 3: Chairman's Comments
Chairman’s Comments “We are pleased with our quarterly results. Our company is on pace for it’s 14th consecutive year of record net revenues and, despite significant investment in our platform and capabilities, is also on track to post record net income for the year. Our quarterly results were posit
Slide 4: 3rd Quarter 2009 Highlights
3°¢ Quarter 2009 Highlights > Record net revenues of $290 million, a 32% increase from the 34 Quarter of 2008 (3Q08). » The Global Wealth Management (GWM) segment posted record net revenues of $157 million, a 34% increase from the 3Q08. >» The Capital Markets (CM) segment posted record net revenues
Slide 5: YTD 2009 Highlights
YTD 2009 Highlights > — Record net revenues of $771 million for the nine months ended September 30, 2009, a 21% increase from the prior-year period. > The GWM segment posted record net revenues of $407 million for the nine months ended September 30, 2009, a 14% increase from the prior-year period. >
Slide 6: Stifel Financial Corp. Income Statements
Stifel Financial Corp. Income Statements
Slide 7: Significant Quarterly Items Three Months Ended September 30, 2009
Significant Quaterly Items Three Months Ended September 30, 2009
Slide 8: Private Client Group Normalized Pro Forma Three Months Ended September 30, 2009
Private Client Group Normalized Pro Forma Three Months Ended September 30, 2009
Slide 9: Source of Revenues
Source of Revenues (Bin thousands) Revenues Principal transactions Commissions Investment banking Asset mgt and service fees Other Total operating revenues Interest revenue Total revermes Interest expense Net revenues Quarters Ended Change ¥ID Change ot Net ot Met ot Met ot Met sisoron9 Fe 9/30/2008
Slide 10: Principal Transactions
Principal Transactions Quarters Ended Change Change (8 in thousands) 9/30/2009 9/30/2008 $ % 9/30/2009 9/30/2008 $ % Principal transactions Taxable debt $ 76,204 $ 39,197 $37,007 94%] $ 226,190 $124,696 $101,494 81% Mumicipal debt 17,943 10,993 6,950 63% 49,859 31,395 18,464 59% Equities 18271 11,79
Slide 11: Stifel Income Statements Non-Interest Expenses
Stifel Income Statements Non-Interest Expenses
Slide 12: Segment Comparison
Segment Comparison (8 in thousands) Net revenues: Global Wealth Management Capital Markets Other Total net revenues Operating contribution: Global Wealth Management Capital Markets Other Total operating contribution Quarters Ended Change YID Change 09/30/09 —_ 09/30/08 $ % 09/30/09 —_ 09/30/08 $ % $
Slide 13: YTD Segment Comparison (Excludes Acquisitions)
YTD Segment Comparision (Excludes Acquisitions)
Slide 14: Global Wealth Management Income Statements
Global Wealth Management Income Statements
Slide 15: Stifel Bank & Trust Income Statements
Stifel Bank & Trust Income Statements
Slide 16: Stifel Bank & Trust
Stifel Bank & Trust > — Assets increased 78% to $966 million as of 9/30/2009 » Investment portfolio increased 126% from $133 million as of 6/30/09 to total $301 million as of 9/30/09 Purchases since quarter-end increased the portfolio to $492 million Agency MBS comprise over 74% of the portfolio The
Slide 17: Capital Markets Income Statement
Capital Markets Income Statement
Slide 18: Capital Markets Revenues
Capital Markets Revenues Quarters Ended Change YD Change (8 in thousands) 9/30/09 9/30/08 $ % 9/30/09 9/30/08 $ % ECM flow business $ 39,733 $ 44,827 $ (5,094) -11% | $114,598 $ 115,361 $ (763) -1% FICM flow business 58,196 34,050 24,146 «71% | 174,698 (105,399 69,299 66% Total sales & trading 97,92
Slide 19: Other Segment Analysis
Other Segment Analysis (8 in thousands) Net revenue Conpensation and benefits ‘Non-conp operating expenses: Occupancy and equipment Communication and office supplies Conmission and floor brokerage Other operating expenses Total non-comp operating expenses Total noninterest expenses Income before Inc
Slide 20: Stifel Financial Balance Sheet Graphs
Stifel Financial Balance Sheet Graphs
Slide 21: Capital Structure
Capital Structure ($ in thousands) Total Assets $ 2,890,795 Stockholders’ Equity $ 833,594 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 22: Level Assets
Level 3 Assets Carrying Value Change (8 in thousands) 9/30/09 12/31/08 Auction Rate Securities $ 55,786 $ 18,509 $ 37,277 Stifel Bank & Trust Investments 11,700 10,423 1,277 Trading Securities 767 4,161 (3,394) Other Investments 5,093 5,169 (76) $_73,346 $ 38,262 $ 35,084 Percentage of Equity 9% 7%
Slide 23: Other Financial Data
Other Financial Data Quarterly Data Other Data 9/30/2009 __ 6/30/2009 9/30/2008 Bank Assets $ 965,569 $ «532,308 $= 327,279 SN & SF Assets 1,925,226 1,755,684 1,714,146 Total Assets (000s) $ 2,890,795 $ 2,287,992 $ 2,041,425 Stockholders Equity (00's) $ 833,594 $ «702,702 $= 565,387 Book value Per S
Slide 24: 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 25: Total
Total Asof % YTD Business Units 2004 9/30/2009 _ Change _ Additions} Firm Net Revenues (millions) $247 $1,028 * 317% Equity Capital (millions) $131 $334 53596 Share Price $13.97 $54.90 293% Market Cap (millions) $207 $1,663 703% Total Associates 1,384 4,289 210% 1203 Global Wealth Management Financi
Slide 26: ACAT Fee Reimbursement
ACAT Fee Reimbursement Automated Customer Account Transfer System P2009 Reimbursed Reimbur sed Fees Fees Ql 15,857 (51,384,000) 4,872 ($406,000) Q2 39,151 (3,657,000) 7,708 (653,000) Q3 27,055 (2,454,000) 16,528 (1,386,000) Total 82,063 ($7,495,000) 29,108 ($2,445,000)
Slide 27: De Novo Branches
De Novo Branches (1) % of Net % of Net % of Net (8 in thousands) Quarter Revenues YTD _ Revenues | Potential Revenues Revenues ” $ 16,907 100% $ 36,464 100%] $ 110,000 100% Compensation and benefits 10,957 65%"S 24,028 66%$ 66,200 60% ‘Non-compensation expenses 4,148 25%"$ 10,703 29%| $ 17,800 16% P
Slide 28: Q&A - Questions and Answers
Q&A - Questions and Answers