Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q3 2010 Earnings Presentation
23 slides from Stifel Financial's earnings presentation, Nov 9, 2010
Slide 1: Third Quarter 2010 Financial Results Presentation
34 Quarter 2010 Financial Results Presentation November 9, 2010 STIFEL WININNGUNG
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: Chairmen's Comments
Chairmen’s Comments Ronald J. Kruszewski, Chairman, President and Chief Executive Officer commented, “Our record net revenues and operating results demonstrate the diversity of our platform and our ability to navigate through changing economic conditions. We have made significant investments in our
Slide 4: Financial Results
Financial Results
Slide 5: Highlights: Three Months Ended September 30, 2010
Highlights: Three Months Ended September 30, 2010 > Record net revenues of $340.4 million, an 18% increase over the 3" quarter of 2009 and a 4% increase over the 2 quarter of 2010. > The Global Wealth Management (GWM) segment posted record net revenues of $207.5 million, a 31% increase over the 3" q
Slide 6: Highlights: Nine Months Ended September 30, 2010
Highlights: Nine Months Ended September 30, 2010 > Record net revenues of $980.4 million, a27% increase over the comparable period in 2009. > The GWM segment posted record net revenues of $606.8 million, a 48% increase over the comparable period in 2009. > The IG segment posted record net revenues o
Slide 7: Stifel Financial Corp. Results
Stifel Financial Corp. Results Three months ended September 30, 2010 ‘Tiwee Months Ended September 30, 2010 Quarter Ended Merger Ended 6/30/09 Related 9oso ~ {Non ~ {5 in thousands, except per share amounts) GaaP Charges" Non-GAAP (GAAP) — Change GAAP} Change™ Netrevenues $ moses $ 939 $ BHSZy S$ 28
Slide 8: Estimated TWPG Merger-Related Expenses
Estimated TWPG Merger-Related Expenses Quarter Ended GF30/10 9F30/10 wyo_ 3fsafit (5 inthensomds] Plan Actual Plan Actual Plan Plan Operating expenses: ‘Compensation and benefits $ 3,100 $ 3,00 $177,050 $ 183,176 «) $ = 700 - Non-comp operating expenses 1,900 1,900 12,800 BAIS, 0,900 3 __2,000 ‘Tota
Slide 9: Stifel Financial Corp. Results
Stifel Financial Corp. Results Nine months ended September 30, 2010 Nine Months Ended September 30, 2010 (6 in thousands, except per share amounts} Net revenues Compensation and benefits Non-comp operating expenses ‘Total non-interest expenses Income/{loss) before income taxes/{benefit} Provision fo
Slide 10: Source of Revenues
Source of Revenues 65 ia thousands) oyanfin g/sojo9 = Chamge | gagfig. Change spofo sy30/09 Chamge: Rewemes Principal transactions $ 12319) $ 123,238 anx% $ 122,923 am ($ aeasay) $ M777 Gax Commissions 96,996 90,505 sx 1364 | (64% eS 2452360 AIK Asset met and service fees 50876 mo aK 441380 153% 136
Slide 11: Principal Transactions Revenues
STIFEL FINANCIAL cipal Transactions Revenues Quarter Ended Nine Months Ended % % ~ 9/30/10 gfsajo9 Change gyso/10_— Change | 9/20/10 gfsojog—_ Change $ eo208 $ 76204 (210%) $ 60,108 02% | $ 185,007 $226,190 = (18.2%) 20,091 17,943 120% 20,032 03% 56,964 49,259 143% 7A 18,271 50.1% 79,630 (7.4%) 7934
Slide 12: Non-interest Expenses
Stifel Financial Corp. Non-interest Expenses Quarter Ended of Netreverues Non-GAAP GAAP Non-GAAP inthonsomes) 3D FY Chae G10 Chee | AVI KY HID Retreverues $n $ mem oe Sua 4x| eK Soninterest expemes: Compensation andbenefits 212,70 SAL pr 737 (05%) 623% 667% ole (Ocampancy and equipment rental Poo) A
Slide 13: Non-interest Expenses
Stifel Financial Corp. Non-interest Expenses Nine Months Ended ‘Sof Netrevenues Non-GAAP * (Sh rousantsy spyio 9/30/09 Chane ano 9/acya9 Net revenues $ sms $ Tie w3K| mam 20K Non interest expenses: Compensation and benefits omy = S16852 AK | BEEK GT. (Gcaspancy and equipment rental 0910 11 bam ae B2
Slide 14: Global Wealth Management
Global Wealth Management Quarter Ended Mine Months Ended {S in thousands) sfafio 8/30/09 %Chamge 6/30/10 “Change | 9/30/10 9/30/09 % Change Ret revenues $ 207484 «$ 158659 © aag% $199,510 asx |$ Goon $403,911 = 8.0% Compensation and benefits 419,100 96711 232% 123,609 (asx) | 367,447 25310 AK Non-co
Slide 15: Stifel Bank & Trust
{Sin thousands) Net revermes: Interest Other income Total revenues Interest expense Total net revenues Compensation and benefits Non-comp operating expenses ‘Total non-interest expenses Income before income taxes Ratios to net revenues: Compensation and benefits Non-comp operating expenses Efficienc
Slide 16: Stifel Bank & Trust
Stifel Bank & Trust Low Risk Asset Growth Strategy & Opportunity > Assets of $1.5 billion, anincrease of 34% from $1.1 billionat >} Maintain solid asset quality: December 31, 2009. > Non-performingloans to gross loans of 0.30% > Investment portfolio of $830.1 million, an increase of 44° from > Non p
Slide 17: Institutional Group
Institutional Group (5 in thousands) Compensation and benefits Non-comp operating expenses ‘Total nonamterest experses income before income taxes Ratias to net evenues = Compensation and benefits Non-comp operating expenses Income before income taxes STIFEL FINANCIAL Quarter Ended Mine Months Ended
Slide 18: Institutional Group Revenues
Institutional Group Revenues Quarter Inded Nine Months Ended £3 in thowsants} spof0 9809 Cham gsoyi0 = XChange | 9730/10 9/3009 Change Sales and trading: Equity $ 43311 $ 39,733 100% $ 44,099 oo |$ 126462 $ 114598 10.4% Fixed income 43,208 58196 __ (243%) 44,263 ox | 132416 _ 174698 _ paz 87,519 979
Slide 19: Financial Condition
Financial Condition
Slide 20: Statement of Financial Condition
Statement of Financial Condition As of September 30, 2010 sou sam ‘sqoua $956 suis se sao — sa00 sor = re $2900 — $520 nue] aa ae 4 4 S400 a su Se am sus S55 ems a ea | | a es Es Ee 7 aE ,.fFekr em es mm ow mea 70k ms ns mak wetPrtered cis Total Capitalization ($ millions) i a7 oar 40 pee a8 33397 o
Slide 21: Capital Structure
Capital Structure As of September 30, 2010 (Sinthousonds) Total Assets § 4,130,714 Stockholders' Equity § 1,159,385 Debentures to: Stif€l Financial Ca pital Trust Il - LIBOR plus 1.70%, due 9/30/35 35,000 $ Stifd Financial Ca pital Trust III -LIBOR plus 1.85% {fixed at 6.79% until 6/6/12}, due 6/6/3
Slide 22: Level 3 Assets
Level 3 Assets Carrying Value (Sin thousands) 9p20f10 12/31/09 Auction Rate Securities (ARS) $ 95583 $ 56,003 Stifel Bank & Trust Investments - 2668 Trading Securities 14,970 1.243 Other Investments 36,559 7 526 Level 3 assets (excluding ARS) 51529 9362 Total Level 3 assets $ 137,0R 65,365 Percentag
Slide 23: Other Financial Data
Other Financial Data As of Asof f30/10 9/30/09 % Change 6/20/10 _% Change Total assets (000s. Stifel Nicolaus andStifel Financial $ 2,614,225 — $ 1,925,226 388% $ 1977879 32.2% Stifel Bank 1516489 965,569 S7A% __ 1,392,828 8.9% $_ 4130714 _$ 2,890,795. 29% _$ 3,370,707 22.5% Shareholders" equity (00