Stifel Financial Corporation · NYSE:SF
Stifel Financial — Investor Presentation (November 2014)
35 slides from Stifel Financial's investor presentation, Nov 19, 2014
Slide 1: Stifel Financial Corp. November 2014
Exhibit 99.1 Stifel Financial Corp. November 2014
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements Thispresentationmaycontain“forward-lookingstatements”within the meaningof the PrivateSecuritiesLitigationReformActof 1995that involve significantrisks,assumptions,and uncertainties,includingstatementsrelating to the marketopportunity andfuture businessprospectso
Slide 3: Stifel Overview
Stifel Overview
Slide 4: Stifel – Premier Investment Bank and Full-Service Investment Firm
Stifel – Premier Investment Bank and Full-Service Investment Firm Stifel at a Glance Core Net Revenue - $2,199 million (TR12) Global Wealth Management (GWM) Institutional Group (IG) Net Revenue - $1,215million (TR12) Net Revenue - $988 million (TR12) Private Client Equity & Fixed Income Capital Rais
Slide 5: Leading broker-dealer providing wealth management and institutional services
Leading broker-dealer providing wealth management and institutional services to consumers and companies Stifel’s Differentiated Value Proposition: Growth, Scale and Stability Bulge Bracket Boutique Size / scale Firm focus Large distribution Good research Size / scale Trading Growth investor access F
Slide 6: Significant Growth
Significant Growth Unwavering Commitment 2013 2013 Knight Capital Acacia Bank & 2012 Group’s Fixed 2014 #1 Ranked in Ziegler Lotsoff Income Division De La Rosa, FT/StarMine 2013 Oriel Securities 2011 Award* #2 Ranked in Stone & Youngberg 2013 & 1919 IC FT/StarMine Acquisition Keefe, Bruyette & 2012
Slide 7: Building Scale
Building Scale Each merger has been accretive to Stifel and retention remains high Customized investment advisory and trust services Fixed Income IB November 2014 Fixed Income Sales and Trading UK-based full service Private Client investment bank Seamless & efficient integration July 2014 October 20
Slide 8: Acquisition Updates
Acquisition Updates Closed February 15, 2013 Consolidation is complete 2014 #1 Bank M&A Advisor based on deal value¹ Advised on 11 of Top 20 bank mergers YTD¹ FIG ECM market share up 60+% from FY2012 through 1 st 9M 2014 Outperforming equity brokerage desk Closed July 31, 2014 Full-service broker-de
Slide 9: Well-diversified, low risk business model with balanced retail and institutional exposure
Well-diversified, low risk business model with balanced retail and institutional exposure Unburdened by capital constraints Low leverage business model and conservative risk management Limited balance sheet risk Stable wealth management business is augmented by profitable and growing institutional b
Slide 10: Demonstrated ability to grow through all market environments
Demonstrated ability to grow through all market environments while maintaining solid profitability Core Net Revenues ($MM) (1) Core Net Income ($MM) (1) CAGR: 24% CAGR: 24% Financial Crisis Financial Crisis (1) CAGR reflects years 2006 to 2013. 10
Slide 11: Interest Rate Risk Profile
Interest Rate Risk Profile PROJECTED INCREASE IN PRE-TAX EARNINGS FROM A 200 BPS RISE IN RATES ($ millions; as of September 30, 2014) Key Assumptions: $45 - 50 $60 - 70 (19 - 22%)* • Based on static balances on September 30, 2014 and an instantaneous change in rates • Ultimately, the amount earned b
Slide 12: Segment Overview – Global Wealth Management
Segment Overview – Global Wealth Management
Slide 13: Global Wealth Management
Global Wealth Management Provides Securities Brokerage Services and Stifel Bank Products Overview National Presence Grown from 600+ financial advisors in 2005 to over 2,000(1) financial advisors currently Proven organic growth and acquirer of private client business Individual investors are generall
Slide 14: Global Wealth Management
Global Wealth Management Key Operating Metrics Financial Advisors (1) Branches Accounts Assets Under Management ($MM) (1) Includes Independent Contractors. 14
Slide 15: Stifel Bank and Trust
Stifel Bank and Trust Overview Strength of Brokerage Position Acquired FirstService Bank, a St. Louis-based, Offers banking products (securities based loans and Missouri-chartered commercial bank, in April 2007 mortgage loans) within the GWM client base, including establishing trust services Stifel
Slide 16: Growing Asset Management Capabilities
Growing Asset Management Capabilities Total Assets: $19.6 Billion¹ Assets¹ Location Baltimore, New York, $9.4 Billion Cincinnati, Philadelphia Chicago, Milwaukee, $5.9 Billion St. Louis $2.4 Billion Baltimore, MD $880 Million Portland, OR $700 Million Florham Park, NJ $300 Million San Francisco, CA
Slide 17: Segment Overview – Institutional Group
Segment Overview – Institutional Group
Slide 18: Institutional Group
Institutional Group Overview Net Revenues ($MM) (2)(3) Provides securities brokerage, trading, research, underwriting and corporate advisory services Largest provider of U.S. Equity Research 2 nd largest Equity trading platform in the U.S. outside of the Bulge Bracket (1) Full Service Investment Ban
Slide 19: Institutional Group – Research
Institutional Group – Research Largest U.S. Equity Research Platform U.S. Equity Research Coverage (1) Stifel Research Highlights Rank Firm Overall Mid Cap Small Cap 1 Stifel / KBW 1,412 515 454 Largest provider of U.S. Equity Research 2 BofA Merrill Lynch 1,173 459 142 3 Goldman Sachs 1,102 398 94
Slide 20: Institutional Group – Equity Sales and Trading
Institutional Group – Equity Sales and Trading Powerful Platform Spanning North America and Europe Institutional Equity Sales Equity Trading 103 person sales force, commission based 92 sales traders located in Experts in small and mid cap growth and value Baltimore, New York, Boston, Dallas, San Tea
Slide 21: Institutional Group – Fixed Income
Institutional Group – Fixed Income Strong Fixed Income Brokerage Capabilities Overview Client Distribution (1)(2) Comprehensive platform 85 traders with annual client trade volume approaching $400 billion 27-person Fixed Income Research and Strategy Group 7 person US Corporate Debt Capital Markets G
Slide 22: Institutional Group – Public Finance
Institutional Group – Public Finance Overview National K-12 2014YTD Negotiated Deal Rankings Par Amount Number of Stifel has ranked in the top ten nationally for senior Rank Book Runner (US$ mil) Issues managed negotiated underwritings for the past three years, and Stifel has ranked number one 1 Sti
Slide 23: Investment Banking
Investment Banking Accomplished U.S. Equity Underwriting Franchise – All Equity Transactions All Managed Equity Deals Since 2010 Bookrun Equity Deals Since 2010 Source: Dealogic. Rank eligible SEC registered IPOs and Follow-On offerings since 2010. Includes demutualizations. As of 9/30/14. Overlappi
Slide 24: Financial Overview
Financial Overview
Slide 25: Selected Financial Highlights
Selected Financial Highlights Core Net Revenues ($MM) (1) Core Net Income ($MM) (1) Total Equity ($MM) CAGR: 24% CAGR: 24% CAGR: 37% Total Client Assets ($BN) Book Value Per Share (2) CAGR: 24% CAGR: 21% (1) CAGR reflects years 2006 to 2013. (2) Book Value Per Share adjusted for April 2011 three-for
Slide 26: Stifel Financial Results – Three months ended September 30, 2014
Stifel Financial Results Three months ended September 30, 2014 Three Months Ended September 30, 2014 Three Months Ended (1) (2) (2) ($ in thousands, except per share amounts) Non-GAAP Non-Core GAAP 9/30/13 % Change 6/30/14 % Change Total revenues $ 536,241 $ (1,559) $ 534,682 $ 491,101 9.2% $ 570,54
Slide 27: Stifel Financial Results – Nine months ended September 30, 2014
Stifel Financial Results Nine months ended September 30, 2014 Nine Months Ended September 30, 2014 Nine Months Ended (1) (2) ($ in thousands, except per share amounts) Non-GAAP Non-Core GAAP 9/30/13 % Change Total revenues $ 1,664,072 $ (5,023) $ 1,659,049 $ 1,448,302 14.9% Interest expense 29,417 (
Slide 28: Non-Core Deal Costs
Non-Core Deal Costs Three Months Ended Actual Estimate ($ in thousands) 3/31/14 6/30/14 9/30/14 12/31/14 Acquisitions Acacia Federal Savings Bank $ 1,132 $ 2,259 $ 1,227 $ - De La Rosa & Co., Inc. 130 765 164 - Keefe, Bruyette & Woods, Inc. 709 480 23 - Knight Fixed Income 1,477 94 9 - Miller Buckfi
Slide 29: Sources of Revenues
Sources of Revenues Three Months Ended Nine Months Ended % % % ($ in thousands) 9/30/14 9/30/13 Change 6/30/14 Change 9/30/14 9/30/13 Change Commissions $ 151,621 $ 145,837 4.0% $ 152,712 (0.7%) $ 463,749 $ 446,498 3.9% Principal transactions 109,378 122,583 (10.8%) 125,676 (13.0%) 361,515 341,153 6
Slide 30: Brokerage & Investment Banking Revenues
Brokerage & Investment Banking Revenues Three Months Ended Nine Months Ended ($ in thousands) 9/30/14 9/30/13 % Change 6/30/14 % Change 9/30/14 9/30/13 % Change Global Wealth Management $ 159,372 $ 158,085 0.8% $ 161,780 (1.5%) $ 482,657 $ 477,367 1.1% Institutional Group Equity brokerage 58,198 58,
Slide 31: Core Non-Interest Expenses
Core Non-Interest Expenses Three months ended September 30, 2014 Three Months Ended % of Net revenues (1) (1) ($ in thousands) 9/30/14 9/30/13 % Change 6/30/14 % Change 9/30/14 9/30/13 6/30/14 Net revenues $ 524,725 $ 479,634 9.4% $ 561,495 (6.5%) 100.0% 100.0% 100.0% Compensation and benefits 297,3
Slide 32: Core Non-Interest Expenses
Core Non-Interest Expenses Nine months ended September 30, 2014 Nine Months Ended % of Net revenues (1) (1) ($ in thousands) 9/30/14 9/30/13 % Change 9/30/14 9/30/13 Net revenues $ 1,634,655 $ 1,413,660 15.6% 100.0% 100.0% Compensation and benefits 946,755 826,314 14.6% 57.9% 58.6% (2) Transitional
Slide 33: Segment Comparison - Core
Segment Comparison - Core Three and nine months ended September 30, 2014 Three Months Ended Nine Months Ended % % ($ in thousands) 9/30/14 9/30/13 % Change 6/30/14 Change 9/30/14 9/30/13 Change Net revenues: Global Wealth Management $ 317,241 $ 274,669 15.5% $ 307,247 3.3% $ 921,671 $ 824,344 11.8%
Slide 34: Stifel Bank & Trust
Stifel Bank & Trust An Operating Unit of GWM As of 9/30/14 As of 9/30/13 As of 6/30/14 % Change Actual ($) Yield (%) Actual ($) Yield (%) Actual ($) Yield (%) Q314 v Q313 Q314 v Q214 Assets Cash 142,444 0.39 350,255 0.24 132,152 0.37 (59.3) 7.8 (1) Investment securities 2,720,860 2.39 2,949,080 2.33
Slide 35: Capital Structure
Capital Structure As of September 30, 2014 ($ in thousands) Total Assets $ 9,326,117 Stockholders' Equity $ 2,238,549 6.70% senior notes, due 2022 $ 175,000 5.375% senior notes, due 2022 150,000 4.250% senior notes, due 2024 300,000 Debentures to Stifel Financial Capital Trusts II, III, & IV 82,500
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