Stifel Financial Corporation · NYSE:SF

Stifel Financial — Investor Presentation (August 2016)

37 slides from Stifel Financial's investor presentation, August 2016

1. Slide 1: Stifel Financial Corp.

   Stifel Financial Corp. August 2016

2. 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

3. Slide 3: Our Strategy

   Our Strategy

4. Slide 4: Strategic Vision

   Strategic Vision To build a premier wealth management and investment banking firm Global Wealth Management Institutional Private Asset Bank Equities Fixed Investment Research Client Management Sales + Income Banking Trading Sales + Trading 2,298 financial $26B in total $9.4B in assets Experienced Co

5. Slide 5: A History of Growth

   A History of Growth 2015 2016 Barclays Wealth & Eaton Partners Investment Management, ISM Capital Sterne Agee, 2014 Sidoti Joint Venture, De La Rosa, Leumi Partners Oriel Securities, Collaboration Agreement 1919 Investment Counsel, 2013 Merchant Capital Acacia Bank & 2013 Ziegler Lotsoff Knight Capi

6. Slide 6: Driving Shareholder Value Through Deal Integration & Balance Sheet Growth

   Driving Shareholder Value Through Deal Integration & Balance Sheet Growth

7. Slide 7: Core & GAAP EPS to Converge as Deal Charges Realized

   Core & GAAP EPS to Converge as Deal Charges Realized CORE & GAAP EPS 2012 2013 2014 2015 2016 2017 Core $0.63 $0.58 $0.60 $0.53 $0.79 $0.69 $0.68 $0.64 $0.75 $0.65 $0.71 $0.60 $0.51 $0.57 $0.69 $0.60 $0.68 $0.65 $0.74 $0.72 $0.84 GAAP $0.63 $0.21 $0.40 $1.00 $0.64 $0.63 $0.58 $0.52 $0.58 $0.56 $0.27

8. Slide 8: Balance Sheet Growth

   Balance Sheet Growth Balance sheet growth has resumed with ability to further lever the existing capital base $20,000 $18,000 $15,386 $15,000 $14,214 $13,326 Total Assets in Millions Infrastructure Build $9,518 $10,000 $9,009 $6,966 $4,952 $5,000 $4,213 $3,167 $1,558 $- 2008 2009 2010 2011 2012 2013

9. Slide 9: Bank Drove Significant Balance Sheet & Revenue Growth

   Bank Drove Significant Balance Sheet & Revenue Growth Impact of Bank Growth LTM on Consolidated Results Bank growth has been balanced between loans and investments: (mil.) 6/30/2015 6/30/2016 Loans: Total consolidated assets $10,140 $15,385 • Comprised of securities based loans, Investment securitie

10. Slide 10: Potential Impact of Target Asset Levels on Results

    Potential Impact of Target Asset Levels on Results Impact of Bank Growth to Targeted Levels Targeted Bank Growth Would have Normalized Preferred & Significantly Impacted Second Quarter (mil.) 6/30/2016 6/30/2016 Fully Levered Results: Average Assets $13,599 $15,000 $18,000 Risk Weighted Assets $7,48

11. Slide 11: Stifel Overview

    Stifel Overview

12. Slide 12: Stifel – Premier Investment Bank and Wealth Management Firm

    Stifel – Premier Investment Bank and Wealth Management Firm Stifel at a Glance GAAP Net Revenue - $2,446 million (Q2’16 LTM) Global Wealth Management (GWM) Institutional Group (IG) Net Revenue - $1,470 million (Q2’16 LTM) Net Revenue - $980 million (Q2’16 LTM)  Private Client  Equity & Fixed Incom

13. Slide 13: Stifel's Differentiated Value Proposition: Growth, Scale and Stability

    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 inv

14. Slide 14: 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 institu

15. Slide 15: A Stable Track Record Through Multiple Business Cycles

    A Stable Track Record Through Multiple Business Cycles Non-GAAP Net Revenues ($MM)(1) Non-GAAP Net Income ($MM)(1) Total Equity ($MM) (1) CAGR: 19% CAGR: 17% CAGR: 28% Total Client Assets(1) (2) ($BN) Book Value Per Share(1) (3) $250 $220 $226 CAGR: 21% CAGR: 16% $200 $187 $166 $150 $138 $122 $114 $

16. Slide 16: Global Wealth Management

    Global Wealth Management

17. Slide 17: 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 nearly 2,300(1) financial advisors currently  Proven organic growth and acquirer of private client business  Strategy of recruit

18. Slide 18: Building Scale and Capabilities into a $1.5B Revenue Segment

    Building Scale and Capabilities into a $1.5B Revenue Segment…  ~100 advisors managing over $20B in AUM  December 2015  ~130 advisors managing ~ $10B in AUM  June 2015  Customized investment advisory and trust services  November 2014 Private Client  Private Client – 350 financial advisors and

19. Slide 19: GWM - Private Client Group

    GWM - Private Client Group Key Operating Metrics Financial Advisors(1) Branches(1) 3,000 400 361 362 350 330 2,500 2,291 2,298 317 307 2,077 2,103 285 291 1,987 2,041 300 272 2,000 1,885 1,935 250 1,500 1,315 196 200 1,163 148 1,000 150 735 111 100 500 50 0 2006 2007 2008 2009 2010 2011 2012 2013 20

20. Slide 20: GWM - Stifel Bank & Trust

    GWM - Stifel Bank & Trust Overview Key Statistics (000s)  Acquired FirstService Bank, a St. Louis-based, Total assets $9,431,000 Missouri-chartered commercial bank, in April 2007 Total deposits 7,881,000  Stifel Financial became a bank holding company and Total equity 613,000 financial services ho

21. Slide 21: Growing Asset Management Capabilities

    Growing Asset Management Capabilities Total Assets: $26.3 Billion¹ Assets $11.4 Billion $10.3 Billion $2.5 Billion $889* Million $1.2 Billion Offices Chicago Baltimore Baltimore New York Florham Park, NJ St. Louis Cincinnati Milwaukee New York New York Philadelphia San Francisco ¹As of 6/30/2016 *Sa

22. Slide 22: Institutional Group

    Institutional Group

23. Slide 23: 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  2nd largest Equity trading platform in the U.S. outside of the Bulge Bracket(1)  Full-service Investmen

24. Slide 24: Building Scale and Capabilities into a $1.0B Revenue Segment

    Building Scale and Capabilities into a $1.0B Revenue Segment…  Growth Focused  Investment Banking, Research, Sales and Trading Equities  July 2010  Core of our Institutional sales, trading and research group  December 2005  Enhances European debt capital markets capabilities  February 2016 

25. Slide 25: Institutional Group – Investment Banking

    Institutional Group – Investment Banking Accomplished U.S. Equity Underwriting Franchise – All Equity Transactions All Managed Equity Deals Since 2010 Bookrun Equity Deals Since 2010 ($ in billions) # of $ ($ in billions) # of $ Rank Firm Deals Volume Rank Firm Deals Volume 1 Bank of America Merrill

26. Slide 26: Institutional Group – Research

    Institutional Group – Research Largest U.S. Equity Research Platform U.S. Equity Research Coverage (1) Stifel Research Highlights Companies Under Coverage Rank Firm Overall Mid Cap Small Cap 1 Stifel/KBW 1,286 455 427  Largest provider of U.S. Equity Research 2 JPMorgan 1,127 409 175 3 BofA Merrill

27. 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  84 person sales force, commission-based  Experts in small and mid cap growth and value  34 sales traders located in  Team-based sales model with 2 - 4 cov

28. Slide 28: Institutional Group – Fixed Income Capital Markets

    Institutional Group – Fixed Income Capital Markets Strong Fixed Income Brokerage Capabilities Overview Client Distribution (1)(2) Trust Company  Comprehensive platform Insurance 1% Other 2% Broker/Dealer Company 7% 7%  89 traders with annual client trade volume Corporation 1% approaching $500 bill

29. Slide 29: Institutional Group – Public Finance

    Institutional Group – Public Finance Overview  Stifel has ranked in the top ten nationally for senior  Specialty sectors: managed negotiated underwritings for the past five  Education years, and Stifel has ranked #1 nationally for senior  Local Government/Municipal managed K-12 negotiated underw

30. Slide 30: Financial Information

    Financial Information

31. Slide 31: Net Revenue

    Net Revenue Core Net Revenue (mil.) • Total net revenue of $652 mil. in 2Q16 $700 $600 $598 $592 $581 $620 $652 was up 5% sequentially and 9% Y/Y $500 driven by: $400 $300 • Investment Banking revenue $200 increased 32% sequentially but $100 $- declined 16% Y/Y 2Q15 3Q15 4Q15 1Q16 2Q16 • Asset Manag

32. Slide 32: Global Wealth Management

    Global Wealth Management GWM Core Net Revenue (mil.) • Total net revenue in the GWM segment $450 $400 was $386 mil. in 2Q16, up 2% sequentially & 12% Y/Y Net Revenue (mil.) $350 $300 $250 $200 • Brokerage revenue declined less than $150 $100 1% sequentially but increased 8% Y/Y $50 $0 • Asset manage

33. Slide 33: Stifel Bank & Trust

    Stifel Bank & Trust $60.0 Net Revenue (mil.) • Total net revenue at Stifel Bank & Trust was $56 mil. in 2Q16 was up $50.0 5% sequentially & 36% Y/Y $40.0 • Total bank loans of $4.6 bil. $30.0 increased 23% sequentially & 75% $20.0 Y/Y • Total investment securities of $4.6 $10.0 $0.0 2Q15 3Q15 4Q15 1

34. Slide 34: Institutional Group

    Institutional Group $300 • Total net revenue of $261 mil. in 2Q16 $250 increased 8% sequentially & 1% Y/Y Net Revenue (mil.) $200 • Investment banking revenue of $124 $150 mil. increased 34% sequentially but $100 $50 declined 15% Y/Y $0 • Advisory revenue of $68 mil. 2Q15 3Q15 4Q15 1Q16 2Q16 Brokera

35. Slide 35: Institutional Brokerage & Investment Banking

    Institutional Brokerage & Investment Banking $300 Equity & Fixed Income Brokerage Net Revenue • Brokerage revenue in 2Q16 was $136 $250 mil. Net Revenue (mil.) $200 • Equity brokerage revenue of $55 $150 mil. was down 12% sequentially & $100 6% Y/Y $50 • Fixed income brokerage revenue $0 2Q15 3Q15 4

36. Slide 36: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation GAAP Results Three months ended Three months ended (000s) 06/30/16 03/31/16 (000s) 06/30/16 03/31/16 Total GAAP Compensation & benefits expense $ 460,023 $ 411,113 GAAP net income $ 9,772 $ 27,054 GAAP comp. ratio 70.5% 66.3% Duplicative expenses: Compensation & benef

37. Slide 37: Balance Sheet & Capital Return

    Balance Sheet & Capital Return Net Interest Income Drivers • Balance Sheet: • Total assets increased to $15.4 bil. in $12,000 2.50% 2Q16, up 7% sequentially & 50% Y/Y $10,000 2.00% • Average interest earning assets increased to $11.4 bil. up 8% Avg. IEA (mil.) $8,000 1.50% sequentially & 63% Y/Y NIM

Stifel Financial — Investor Presentation (August 2016) on 6ix