Stifel Financial Corporation · NYSE:SF
Stifel Financial — JMP Securities Financial Services Conference 2018
39 slides from Stifel Financial's conference presentation, Jun 18, 2018
Slide 1: Investor Presentation – JMP Securities Financial Services Conference
Investor Presentation JMP Securities Financial Services Conference June 19, 2018 Exhibit 99.1
Slide 2: Disclaimer
Disclaimer 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 futu
Slide 3: Our Strategy
Our Strategy STIFEL
Slide 4: Strategic Vision
Strategic Vision To build a premier wealth management and investment banking firm Global Wealth Management Institutional Private Client 2,266 financial advisors in 361 branches with more than $244B in client assets Asset Management $29B in total assets managed through various strategies Bank $15B in
Slide 5: A History of Growth
A History of Growth 2005 Legg Mason’s Capital Markets Division 2008 Butler Wick 2009 56 UBS Private Client Branches 2010 Thomas Weisel Partners 2007 Ryan Beck Acquisition Stifel Bank & Trust 2011 Stone & Youngberg 2012 Miller Buckfire 2013 Knight Capital Group’s Fixed Income Division 2014 De La Rosa
Slide 6: Years of Substantial Growth
10 Years of Substantial Growth *Non-GAAP Results ** Share Price and Market Capitalization as of 1/24/2018, FactSet
Slide 7: Driving Shareholder Value Through Deal Integration & Balance Sheet Growth
Driving Shareholder Value Through Deal Integration & Balance Sheet Growth
Slide 8: Infrastructure Build and Balance Sheet Growth
139% Growth 128% Growth Infrastructure Build Balance Sheet Growth
Slide 9: Bank Drove Significant Balance Sheet & Revenue Growth
Bank Drove Significant Balance Sheet & Revenue Growth Bank growth has been balanced between loans and investments: Loans: Comprised of securities based loans, C&I, and residential mortgages Focused lending to high net worth retail clients AFS & HTM Investments: Portfolio primarily GSE MBS, ABS, and
Slide 10: Stifel Overview
Stifel Overview STIFEL 10
Slide 11: Stifel – Premier Investment Bank and Wealth Management Firm
Stifel – Premier Investment Bank and Wealth Management Firm Stifel at a Glance 2017 GAAP Net Revenue - $2.9 billion Global Wealth Management (GWM) 2017 Net Revenue - $1.8 billion Institutional Group (IG) 2017 Net Revenue - $1.1billion Private Client Stifel Bank & Trust Margin and Securities-based Le
Slide 12: Leading broker-dealer providing wealth management and institutional services
Leading broker-dealer providing wealth management and institutional services to consumers and companies Bulge Bracket Boutique Size / scale Large distribution Trading Retail Issues Lack of focus Banker turnover Lack of commitment Research indifference Lack of growth investors Firm focus Good researc
Slide 13: Well-diversified, Low Risk Business Model
Well-diversified, Low Risk Business Model with Balanced Retail and Institutional Exposure Unburdened by capital constraints Low leverage business model and conservative risk management Limited balance sheet risk Stable wealth management business is augmented by profitable and growing institutional b
Slide 14: A Stable Track Record Through Multiple Business Cycles
A Stable Track Record Through Multiple Business Cycles Non-GAAP Net Revenues(1) ($MM) Total Equity ($MM) Total Client Assets(2) ($BN) Book Value Per Share(3) 2018 full year non-GAAP net revenues based on annualized result as of 3/31/2018 Excludes impact of sale of Sterne Agee Independent Contractor
Slide 15: Global Wealth Management
Global Wealth Management STIFEL
Slide 16: Global Wealth Management (GWM)
Global Wealth Management (GWM) Provides Securities Brokerage Services and Stifel Bank Products Overview National Presence Grown from 600+ financial advisors in 2005 to 2,266 financial advisors currently Proven organic growth and acquirer of private client business Strategy of recruiting experienced
Slide 17: Building Scale and Capabilities into a $1.8B Revenue Segment
Building Scale and Capabilities into a $1.8B Revenue Segment Private Client Asset Management Bank 56 UBS Branches Private Client – 350 financial advisors and support Revenue production has exceeded expectations October 2009 Private Client – 75 financial advisors Public Finance December 2008 Private
Slide 18: GWM - Private Client Group Key Operating Metrics
GWM - Private Client Group Key Operating Metrics Accounts(1) Financial Advisors(1) Total Client Assets(1) ($MM) Branches(1) Excludes Legacy Sterne Agee Independent Contractor Business.
Slide 19: GWM – Stifel Bank & Trust
GWM – Stifel Bank & Trust Acquired FirstService Bank, a St. Louis-based, Missouri-chartered commercial bank, in April 2007 Stifel Financial became a bank holding company and financial services holding company Substantial Balance sheet growth with low-risk assets Funded by Stifel Nicolaus client depo
Slide 20: Growing Asset Management Capabilities
Growing Asset Management Capabilities Asset Management Subsidiaries with $29.1 Billion in Client Assets As of March 31, 2018. Ziegler Capital Management, LLC, 1919 Investment Counsel, LLC, Choice Financial Partners, Inc. d/b/a EquityCompass Strategies, and Washington Crossing Advisors, LLC are wholl
Slide 21: Institutional Group
Institutional Group STIFEL
Slide 22: Institutional Group Net Revenues
Institutional Group Net Revenues ($MM)(2)(3)(4) Fixed Income Brokerage + Investment Banking (4) Overview Equity Brokerage + Investment Banking (4) Provides securities brokerage, trading, research, underwriting and corporate advisory services Largest provider of U.S. Equity Research 3rd largest Equit
Slide 23: Building Scale and Capabilities into a $1.0B Revenue Segment
Equities Fixed Income Investment Banking Building Scale and Capabilities into a $1.0B Revenue Segment Growth Focused Investment Banking, Research, Sales and Trading July 2010 Core of our Institutional sales, trading and research group December 2005 Knight Fixed Income IB, Sales and Trading, Private
Slide 24: Institutional Group – Advisory
Institutional Group – Advisory 2010-2018 YTD: Leadership in M&A of Public Companies and deals < $1bn. Public Deals < $1 Billion in Value All Deals < $1 Billion in Value Source: Dealogics M&A Analytics as of April 30,2018. Note: Includes all sell-side and buy-side strategic or sponsor-backed disclose
Slide 25: Institutional Group – Equity Underwriting
Institutional Group – Equity Underwriting Accomplished U.S. Equity Underwriting Franchise – All Equity Transactions Bookrun Equity Deals Since 2010 All Managed Equity Deals Since 2010 Source: Dealogic. Rank eligible SEC registered IPOs and Follow-On offerings since 2010. Includes demutualizations. A
Slide 26: Institutional Group – Research
Institutional Group – Research Largest U.S. Equity Research Platform U.S. Equity Research Coverage (1)(2) Coverage Balanced Across All Market Caps (1) Stifel Research Highlights Largest provider of U.S. Equity Research Largest provider of U.S. Small Cap Research² #1 U.S. provider of Financial Servic
Slide 27: Institutional Group – Equity Sales and Trading
Institutional Group – Equity Sales and Trading Powerful Platform Spanning North America and Europe Institutional Equity Sales Equity Trading Extensive Distribution Network Relationships with over 3,500 institutional accounts globally Active daily market maker in over 3,700 stocks Traded over 6.5 bil
Slide 28: Institutional Group – Fixed Income Capital Markets
Institutional Group – Fixed Income Capital Markets Strong Fixed Income Brokerage Capabilities Overview Client Distribution (1)(2) Platform & Products Comprehensive platform 85 traders with annual client trade volume approaching $600 billion 45-person Fixed Income Research and Strategy Group Widespre
Slide 29: Institutional Group – Public Finance
Institutional Group – Public Finance Overview Stifel has ranked in the top ten nationally for senior managed negotiated underwritings for the past five years, and Stifel has ranked #1 nationally for senior managed K-12 negotiated underwritings for 2016 & 2017. Stifel’s Public Finance Group ranked #1
Slide 30: Second Quarter Update & First Quarter Review
Second Quarter Update & First Quarter Review
Slide 31: Second Quarter Financial Update
Second Quarter Financial Update Updated Guidance from First Quarter Earnings Conference Call: Institutional Segment: At this time, we estimate that second quarter 2018 Investment Banking revenues could be down between 10% - 20% from first quarter 2018 levels primarily as a result of the timing of tr
Slide 32: First Quarter Results
First Quarter Results nancial Highlights (0005, ecept per share deta) Netincome Preferred dividend Net income available to common shareholders Eamings per diluted share available to common shareholders reeM Non. 1017 % Change vonths Ended GMP $750549 $677,515 11% $804085 ——-7%| | $750358 $675,531 $8
Slide 33: Investment Banking, Brokerage Revenue, & Asset Management & Service Fees
Investment Banking, Brokerage Revenue, & Asset Management & Service Fees
Slide 34: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Three months ended March 31, 2018
Slide 35: Balance Sheet & Net Interest Margin
Balance Sheet & Net Interest Margin
Slide 36: Segment Results
Segment Results STIFEL 26
Slide 37: Global Wealth Management
Global Wealth Management GWM Net Revenue WY Ege] $500 1a18 change Change a (Global Wealth Management Revenue = Commissions S19 1% == 1% 8300 FincipalTansactions SH 15% 4% 8s200 brokerage S163 5% OK 3 seo Menagurent & Snice Fes oe $100 Net interest sie 32% 8% so - - : r . lavetnent Banking se 14% 107
Slide 38: Stifel Bank & Trust
Stifel Bank & Trust 1018 1017 4Q17 Change $7549 $6,557 | 15% | $7461) 1% 2,634 2.214 19% 2,594 2% 2,554 1,831 39% 2438 5% 1809 1,729] 5% 1819| 1% 25 43 | 42% 92 | -73% $7,076 $5,865 | 21% | $6,948 | 2% 207 | 26% 6 | 15% $15,155 $13,233 | 15% |$14,996 | 1% Liabilities: Deposits $13,330 $11,701 | 14%
Slide 39: Institutional Group
Institutional Group Institutional Group Net Revenue institutional Revenue WY — Sequer 1@18 Change Change $300 Equity ‘Advisory $97 89% 18% Underwriting $53 47% 9% Brokerage $48 11% 3% so 1017 2017 3017 4ai7 1018 Tota Equity Capital Markets Revenue $198 40% 13% Advisory Fees Capital Raising MBrokerag
Stifel Financial — JMP Securities Financial Services Conference 2018 on 6ix