Slide 1: 4th Quarter and Full-Year 2010 Financial Results Presentation
4th Quarter and Full-Year 2010 Financial Results Presentation February 15, 2011
Slide 2: Forward-Looking Statements
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 future business
Slide 3: Chairman's Comments
Chairman’s Comments “We are very pleased to report our 15th consecutive year of record revenues and equally pleased with the success of our merger with Thomas Weisel Partners. Our record quarterly revenues and record quarterly investment banking revenues demonstrate the power of the franchise and un
Slide 4: Stifel Financial Stock Performance
Stifel Financial Stock Performance Assumes $100 invested on December 31, 2005 * Compound Annual Growth Rate 3
Slide 5: Financial Results
Financial Results
Slide 6: Stifel Financial Corp. Results
Stifel Financial Corp. Results Three months ended December 31, 2010 Three Months Ended December 31, 2010 Quarter Quarter Ended Merger- Ended 9/30/10 Related 12/31/09 % (Non- % (1) (2) (2) ($ in thousands, except per share amounts) GAAP Charges Non-GAAP (GAAP) Change GAAP) Change Net revenues $ 401,5
Slide 7: Source of Revenues
Source of Revenues Quarter Ended Year Ended % % ($ in thousands) 12/31/10 12/31/09 Change 9/30/10 % Change 12/31/10 12/31/09 Change Revenues Principal transactions $ 89,996 $ 116,410 (22.7%) $ 123,194 (26.9%) $ 453,533 $ 458,188 (1.0%) Commissions 139,605 99,285 40.6% 96,986 43.9% 445,260 345,520 28
Slide 8: Principal Transactions Revenues
Principal Transactions Revenues Quarter Ended Year Ended % % % ($ in thousands) 12/31/10 12/31/09 Change 9/30/10 Change 12/31/10 12/31/09 Change Taxable debt $ 46,924 $ 66,210 (29.1%) $ 60,208 (22.1%) $ 231,930 $ 292,400 (20.7%) Municipal debt 18,520 16,102 15.0% 20,091 (7.8%) 75,484 65,962 14.4% Eq
Slide 9: Investment Banking Revenues
Investment Banking Revenues Quarter Ended Year Ended % % % % ($ in thousands) 12/31/10 12/31/09 Change 9/30/10 Change 12/31/10 12/31/09 Change 12/31/08 Change Capital raising $ 50,404 $ 34,498 46.1% $ 28,593 76.3% $ 135,898 $ 76,563 77.5% $ 45,205 69.4% Advisory 40,571 16,047 152.8% 23,063 75.9% 82,
Slide 10: Non-Interest Expenses
Non-Interest Expenses Three months ended December 31, 2010 Quarter Ended % of Net revenues Non-GAAP GAAP Non-GAAP ($ in thousands) 12/31/10 12/31/09 % Change 9/30/10 % Change 12/31/10 12/31/09 9/30/10 Net revenues $ 402,787 $ 319,467 26.1% $ 341,327 18.0% 100.0% 100.0% 100.0% Compensation and benefi
Slide 11: TWPG Merger-Related Expenses
TWPG Merger-Related Expenses Quarter Ended 6/30/10 9/30/10 12/31/10 3/31/11 ($ in thousands) Estimate Actual Estimate Actual Estimate Actual Estimate Operating expenses: Compensation and benefits $ 3,100 $ 3,100 $ 177,050 $ 183,176 (1) $ 700 $ (242) - Non-comp operating expenses 1,900 1,900 12,800 8
Slide 12: Stifel Financial Corp. Results
Stifel Financial Corp. Results Year ended December 31, 2010 Year Ended December 31, 2010 Merger- Related Year Ended % (1) (2) ($ in thousands, except per share amounts) GAAP Charges Non-GAAP 12/31/09 Change Net revenues $ 1,382,026 $ 2,126 $ 1,384,152 $ 1,090,636 26.9% Compensation and benefits 1,05
Slide 13: Non-Interest Expenses
Non-Interest Expenses Year ended December 31, 2010 Year Ended % of Net revenues Non-GAAP % ($ in thousands) 12/31/10 12/31/09 Change 12/31/10 12/31/09 Net revenues $ 1,384,152 $ 1,090,636 26.9% 100.0% 100.0% Compensation and benefits 870,149 718,115 21.2% 62.9% 65.8% Occupancy and equipment rental 1
Slide 14: Global Wealth Management
Global Wealth Management Quarter Ended Year Ended ($ in thousands) 12/31/10 12/31/09 % Change 9/30/10 % Change 12/31/10 12/31/09 % Change Commi s s ions $ 92,558 $ 75,584 22.5% $ 69,875 32.5% $ 321,541 $ 234,052 37.4% Pri nci pa l tra ns a cti ons 58,520 54,136 8.1% 62,785 (6.8%) 239,851 194,384 23.
Slide 15: Stifel Bank & Trust
Stifel Bank & Trust (an operating unit of GWM) Quarter Ended Year Ended ($ in thousands) 12/31/10 12/31/09 % Change 9/30/10 % Change 12/31/10 12/31/09 % Change Net revenues: Interest 9,287 7,888 17.7% 9,601 (3.3%) 35,146 20,283 73.3% Other income 3,553 1,828 94.4% 1,924 84.7% 8,652 4,736 82.7% Total
Slide 16: Stifel Bank & Trust
Stifel Bank & Trust (an operating unit of GWM) Low Risk Asset Growth Strategy & Opportunity Assets of $1.8 billion, an increase of 55% from $1.1 billion as of Maintain solid asset quality: December 31, 2009. Non-performing loans to gross loans of 0.38% Investment portfolio of $1.0 billion, a
Slide 17: Institutional Group
Institutional Group Quarter Ended Year Ended ($ in thousands) 12/31/10 12/31/09 % Change 9/30/10 % Change 12/31/10 12/31/09 % Change Princi pa l tra ns actions $ 35,564 $ 62,275 (42.9%) $ 60,408 (41.1%) $ 217,770 $ 263,804 (17.5%) Commi ss i ons 47,047 23,701 98.5% 27,111 73.5% 123,719 111,469 11.0%
Slide 18: Institutional Group Revenues
Institutional Group Revenues Quarter Ended Year Ended ($ in thousands) 12/31/10 12/31/09 % Change 9/30/10 % Change 12/31/10 12/31/09 % Change Sales and trading: Equity $ 46,521 $ 38,669 20.3% $ 43,711 6.4% $ 172,983 $ 153,267 12.9% Fixed income 36,090 47,307 (23.7%) 43,808 (17.6%) 168,506 222,006 (2
Slide 19: Financial Condition
Financial Condition
Slide 20: Statement of Financial Condition
Statement of Financial Condition As of December 31, 2010 Total Assets (in millions) Total Capitalization (in millions) 2.7x 1.9x 2.4x 2.0x SF & SN Leverage Ratio Book Value Per Share 19
Slide 21: Capital Structure
Capital Structure As of December 31, 2010 ($ in thousands) Total Assets $ 4,218,030 Stockholders' Equity $ 1,258,798 Debentures to: Stifel Financial Capital Trust II - LIBOR plus 1.70%, due 9/30/35 $ 35,000 Stifel Financial Capital Trust III - LIBOR plus 1.85% (fixed at 6.79% until 6/6/12), due 6/6/
Slide 22: Level 3 Assets
Level 3 Assets Carrying Value ($ in thousands) 12/31/10 12/31/09 Auction Rate Securities (ARS) $ 94,795 (1) $ 56,003 Stifel Bank & Trust Investments - 2,693 Trading Securities 40,243 (2) 1,243 Other Investments 38,502 (3) 5,426 Level 3 assets (excluding ARS) 78,745 9,362 Total Level 3 assets $ 173,5
Slide 23: Other Financial Data
Other Financial Data As of As of 12/31/10 12/31/09 % Change 9/30/10 % Change Total assets (000s): Stifel Nicolaus & Stifel Financial $ 2,444,310 $ 2,025,348 20.7% $ 2,614,225 (6.5%) Stifel Bank 1,773,720 1,142,008 55.3% 1,516,489 17.0% Total assets $ 4,218,030 $ 3,167,356 33.2% $ 4,130,714 2.1% Tota
Slide 24: Business Outlook
Business Outlook Global Wealth Management Institutional Group Regulatory Environment 23 Page 23