Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q3 2014 Earnings Presentation
22 slides from Stifel Financial's earnings presentation, Nov 6, 2014
Slide 1: 3rd Quarter 2014 Financial Results Presentation
Exhibit 99.2 3rd Quarter Exhibit November99.26,2014 2014Financial Results Presentation
Slide 2: Forward-Looking Statements Disclaimer
Forward Disclaimer This statements These particular, costs You the Actual quarterly actions Use The income understanding excluding performance 1considered future, Company of should presentation and statements Non results of taxes, Looking reports benefits, competitors, certain these unless relating
Slide 3: Chairman's Comments
Chairman’s “In particularly Our 2close the results the third acquisition reflect in Comments quarter, the month twoof wemonths Legg had of August. record Mason of ourresults On Investment partnership theinpositive Global Counsel with side, Wealth Oriel in market November, Securities, Management volu
Slide 4: Market Overview
Market U.S. S&P 2014 3Q 9M Y/Y 9M/9M Equity Date 9/30/2014 12/31/2013 9/30/2013 Note: 1% 2014 2013 17% 10yr 500 S& Q3 Q2 Volumes Municipal Risk 1% Valuations Overview 0% P 1,972 1,960 Dow 1,972 1,682 13% Equity 5.48% 6.07% 500 45.54% 1% Premium bps Yield 13 are 17,043 16,827 10yr 17,043 15,130 43% 4
Slide 5: Financial Results
Financial Results
Slide 6: Q3 2014 Results
Q3 2014 Commissions Revenues Principal Brokerage Investment Asset Other Net Non-interest Non-compensation Total Provision Non-GAAP Core Weighted Diluted Operating Income Compensation Non-Compensation Effective Interest revenues 0.64 non-interest management income before EPS 76.7 Estimates Mean trans
Slide 7: Stifel Financial Corp. Nine Months Results
Stifel Nine ($ Interest Non Total Provision Discontinued Net Loss Earnings Weighted Diluted Ratios Compensation Non-comp Income (1) 6(2)inResults Non-core revenues income comp thousands, from months Months revenues non-interest Financial tofrom expense 76,011 per net average for discontinued operati
Slide 8: Non-Core Results and Acquisition Costs
Non-Core Three Actual ($ Acacia Acquisitions De Keefe, Knight Miller Oriel Ziegler Intangible 6,444 Legg Total 7Discontinued inLathousands) Deal Mason Securities 7079 Months Rosa Buckfire Bruyette Estimate Federal Fixed Capital Deal amortization Costs 11,892 &Investment Income Operations, Ended Co.,
Slide 9: Net Revenues by Source
Source Three % ($ Commissions Principal Brokerage Capital Advisory Investment Asset Other Total Interest 8Net %revenues in thousands) %operating revenues mgt 4,803 Months of raising revenue expense transactions 50,939 Revenues and revenues banking 13,063 $$Ended service 534,683 69,208 523,455 revenu
Slide 10: Brokerage and Investment Banking Revenues
Brokerage Three ($ Global Institutional Investment Capital Equity Fixed Advisory 9Total in thousands) Institutional brokerage capital Investment income Months brokerage 44,068 Wealth raising fees &Banking: Group raising Investment brokerage 25,141 50,938 Ended 38,653 Management revenues 9/30/14 bank
Slide 11: Core Three Months Non-Interest Expenses
Core Three ($ Net Compensation Transitional Occupancy Communication Commissions Other Total Income Provision Non-GAAP Non-core GAAP (1) (2) 10 inTransition (1) Excludes revenues thousands) Non-Interest compensation non-comp non-interest operating months Months net from expenses for income and net pa
Slide 12: Core Nine Months Non-Interest Expenses
Core Nine ($ Net 11 Non-Interest months Months (1) Compensation Transitional Occupancy Communication Commissions Other Total Income Provision Non-GAAP Non-core GAAP (1) (2)inExcludes revenues thousands) for ended Ended compensation non-comp non-interest operating net from Transition expenses income
Slide 13: Segment Results
Segment Three % Institutional $Other As Operating Global (1) 12524,725 78,031 %a percentage ($(45,495) (7,676) Months Wealth in Excludes Comparison $contribution contribution: $thousands) 65,443 479,634 Group (167) Ended Management (41,671) ofthe 19.2% net 215,160 29,500 (4496.4%) 9.4% Nine 9/30/14
Slide 14: Global Wealth Management
Global Three ($ Commissions 76,667 Other Net 202,541 Income Ratios Compensation 13 inrevenues thousands) income Months to Wealth 25.7% before 10.2% net revenues 317,241 $6,492 94,187 Ended Management and income 218,149 108,154 9/30/14 benefits 2,858 Nine 2.3% 274,669 :taxes 2.3% $9/30/13 99,427 127.
Slide 15: Stifel Bank
Stifel (an As Actual Cash Assets of operating 142,444 Bank 9/30/14 ($)4,552,522 Investment (2) 14 Bank (0.1) Deposits Liabilities 3.10 Allowance Yield Non-performing Note: (1) Investment 2.17 Total loans Actual &amounts unit As 0.39 Trust (%) of of350,255 securities 2.59 assets for 1,988,076 loan 9/
Slide 16: Institutional Group
Institutional Three ($ Net 185,660 Income Ratios Compensation 15 inrevenues thousands) Months tobefore 170,146 netGroup revenues $Ended and income 215,160 9/30/14 9.1% benefits Nine :taxes 213,022 $9/30/13 205,132 Months 131,589 61.2% $ 29,500 (12.8%) %58.4% 4.9% Ended Change 119,874 $ 34,986 $603,0
Slide 17: Financial Condition
Financial Condition
Slide 18: Capital Structure and Ratios
Capital As (in ($ Total $6.70% Ratios: 172,946,049 in Debt (1) thousands, ofthousands) Assets September Debt tosenior Structure $notes, Equity 9,326,117 except to equity30, 18.2%due 2014 ratios) ratio 2022 Stockholders’ Tier $ 175,000 includes 1 Leverage Equity 5.375% the debentures Ratio $to2,238,5
Slide 19: Projected Net Interest Income and Rate Risk Profile
Interest PROJECTED $45 $15 Account Net PCG *: Key Based Ultimately, The 18 %Interest -firm Assumptions: based Earnings 50 20 onRate $60 and isstatic upon expected the Income Risk Service - INCREASE 70 amount balances 3Q’14 (19 Profile to Fees - 22%)* earned keep annualized oninIN September 40 Projec
Slide 20: Other Financial Data and Leverage
Other As 9/30/14 Leverage Stifel Book 19 of assets shareholders’ As Bank Nicolaus value Financial Financial Total (1) 9/30/13 of Includesratio: client 389,322 per (000s): & share Data advisors assets 139, %145, Stifel Change equity 293,331 $and (000s) 2,09633.92 Financial $(000s): 6/30/14 2,075 1403
Slide 21: Acquisition Updates
Acquisition Closed Full-service 23 compensation Expected Investment 20 analysts July toCounsel covering Updates 31, close add broker-dealer expenses 2014 approximately in November more in based the thanthird $9 260 inbillion London- quarter UK companies in client Research, assets in 9sales, industri
Slide 22: Q&A
Q&A