Stifel Financial Corporation · NYSE:SF
Stifel Financial — Q3 2010 Earnings Presentation
23 slides from Stifel Financial's earnings presentation, Nov 9, 2010
Slide 1: 3rd Quarter 2010 Financial Results Presentation
3rd Quarter 2010 Financial Results Presentation November 9, 2010
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 3rd quarter of 2009 and a 4% increase over the 2nd quarter of 2010. The Global Wealth Management (GWM) segment posted record net revenues of $207.5 million, a 31% increase over the 3
Slide 6: Highlights: Nine Months Ended September 30, 2010
Highlights: Nine Months Ended September 30, 2010 Record net revenues of $980.4 million, a 27% increase over the comparable period in 2009. The GWM segment posted record net revenues of $606.8 million, a 48% increase over the comparable period in 2009. The IG segment posted record net revenues
Slide 7: Stifel Financial Corp. Results: Three Months Ended September 30, 2010
Stifel Financial Corp. Results Three months ended September 30, 2010 Three Months Ended September 30, 2010 Quarter Quarter Ended Merger- Ended 6/30/09 Related 9/30/09 % (Non- % (1) (2) (2) ($ in thousands, except per share amounts) GAAP Charges Non-GAAP (GAAP) Change GAAP) Change Net revenues $ 340,
Slide 8: Estimated TWPG Merger-Related Expenses
Estimated TWPG Merger-Related Expenses Quarter Ended 6/30/10 9/30/10 12/31/10 3/31/11 ($ in thousands) Plan Actual Plan Actual Plan Plan Operating expenses: Compensation and benefits $ 3,100 $ 3,100 $ 177,050 $ 183,176 (1) $ 700 - Non-comp operating expenses 1,900 1,900 12,800 8,495 10,000 (3) 2,000
Slide 9: Stifel Financial Corp. Results: Nine Months Ended September 30, 2010
Stifel Financial Corp. Results Nine months ended September 30, 2010 Nine Months Ended September 30, 2010 Nine Merger- Months Related Ended % (1) (2) ($ in thousands, except per share amounts) GAAP Charges Non-GAAP 9/30/2009 Change Net revenues $ 980,427 $ 939 $ 981,366 $ 771,169 27.3% Compensation a
Slide 10: Source of Revenues
Source of Revenues Quarter Ended Nine Months Ended % % ($ in thousands) 9/30/10 9/30/09 Change 6/30/10 % Change 9/30/10 9/30/09 Change Revenues Principal transactions $ 123,194 $ 123,238 0.0% $ 122,923 0.2% $ 363,537 $ 341,777 6.4% Commissions 96,986 90,905 6.7% 103,634 (6.4%) 305,655 246,236 24.1%
Slide 11: Principal Transactions Revenues
Principal Transactions Revenues Quarter Ended Nine Months Ended % % % ($ in thousands) 9/30/10 9/30/09 Change 6/30/10 Change 9/30/10 9/30/09 Change Principal transactions: Taxable debt $ 60,208 $ 76,204 (21.0%) $ 60,108 0.2% $ 185,007 $ 226,190 (18.2%) Municipal debt 20,091 17,943 12.0% 20,032 0.3%
Slide 12: Non-Interest Expenses (Quarter)
Stifel Financial Corp. Non-Interest Expenses Quarter Ended % of Net revenues Non-GAAP GAAP Non-GAAP ($ in thousands) 9/30/10 9/30/09 % Change 6/30/10 % Change 9/30/10 9/30/09 6/30/10 Net revenues $ 341,327 $ 289,683 17.8% $ 328,009 4.1% 100.0% 100.0% 100.0% Non-interest expenses: Compensation and be
Slide 13: Non-Interest Expenses (Nine Months)
Stifel Financial Corp. Non-Interest Expenses Nine Months Ended % of Net revenues Non-GAAP % ($ in thousands) 9/30/10 9/30/09 Change 9/30/10 9/30/09 Net revenues $ 981,366 $ 771,169 27.3% 100.0% 100.0% Non-interest expenses: Compensation and benefits 632,790 516,852 22.4% 64.5% 67.0% Occupancy and eq
Slide 14: Global Wealth Management
Global Wealth Management Quarter Ended Nine Months Ended ($ in thousands) 9/30/10 9/30/09 % Change 6/30/10 % Change 9/30/10 9/30/09 % Change Net revenues $ 207,484 $ 158,659 30.8% $ 199,940 3.8% $ 606,845 $ 409,911 48.0% Compens a ti on a nd benefi ts 119,100 96,711 23.2% 123,609 (3.6%) 367,447 253,
Slide 15: Stifel Bank & Trust
Stifel Bank & Trust Quarter Ended Nine Months Ended ($ in thousands) 9/30/10 9/30/09 % Change 6/30/10 % Change 9/30/10 9/30/09 % Change Net revenues: Interest 9,601 4,962 93.5% 8,171 17.5% 25,859 12,395 108.6% Other income 1,924 865 122.4% 1,062 81.2% 5,099 3,284 55.3% Total revenues 11,525 5,827 97
Slide 16: Stifel Bank & Trust: Low Risk Asset Growth Strategy & Opportunity
Stifel Bank & Trust Low Risk Asset Growth Strategy & Opportunity Assets of $1.5 billion, an increase of 34% from $1.1 billion at Maintain solid asset quality: December 31, 2009. Non-performing loans to gross loans of 0.30% Investment portfolio of $830.1 million, an increase of 44% from Non
Slide 17: Institutional Group
Institutional Group Quarter Ended Nine Months Ended ($ in thousands) 9/30/10 9/30/09 % Change 6/30/10 % Change 9/30/10 9/30/09 % Change Net revenues $ 138,043 $ 130,179 6.0% $ 124,602 10.8% $ 375,937 $ 360,787 4.2% Compens a ti on a nd benefi ts 82,147 77,483 6.0% 72,578 13.2% 221,029 214,251 3.2% N
Slide 18: Institutional Group Revenues
Institutional Group Revenues Quarter Ended Nine Months Ended ($ in thousands) 9/30/10 9/30/09 % Change 6/30/10 % Change 9/30/10 9/30/09 % Change Sales and trading: Equity $ 43,711 $ 39,733 10.0% $ 44,099 (0.9%) $ 126,462 $ 114,598 10.4% Fixed income 43,808 58,196 (24.7%) 44,263 (1.0%) 132,416 174,69
Slide 19: Financial Condition
Financial Condition
Slide 20: Statement of Financial Condition
Statement of Financial Condition As of September 30, 2010 $5,000 $1,242 $4,131 $1,200 $83 $4,000 $956 $3,167 $83 $3,000 $800 $676 $83 $520 $1,159 $2,000 $1,499 $1,558 $95 $873 $1,085 $400 $290 $1,000 $842 $225 $593 $166 $70 $412 $382 $135 $70 $425 $35 $35 $155 $220 $100 $131 $0 $0 2003 2004 2005 200
Slide 21: Capital Structure
Capital Structure As of September 30, 2010 ($ in thousands) Total Assets $ 4,130,714 Stockholders' Equity $ 1,159,385 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) 9/30/10 12/31/09 Auction Rate Securities (ARS) $ 85,543 (1) $ 56,003 Stifel Bank & Trust Investments - 2,693 Trading Securities 14,970 1,243 Other Investments 36,559 (2) 5,426 Level 3 assets (excluding ARS) 51,529 9,362 Total Level 3 assets $ 137,072 $
Slide 23: Other Financial Data
Other Financial Data As of As of 9/30/10 9/30/09 % Change 6/30/10 % Change Total assets (000s): Stifel Nicolaus and Stifel Financial $ 2,614,225 $ 1,925,226 35.8% $ 1,977,879 32.2% Stifel Bank 1,516,489 965,569 57.1% 1,392,828 8.9% $ 4,130,714 $ 2,890,795 42.9% $ 3,370,707 22.5% Shareholders' equity