Stifel Financial Corporation · NYSE:SF
Stifel Financial — Investor Presentation (March 2016)
43 slides from Stifel Financial's investor presentation, Mar 22, 2016
Slide 1: Stifel Financial Corp. March 2016
Stifel Financial Corp. March 2016 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: Market Overview
Market Overview
Slide 4: Market Overview
Market Overview Note: Volumes are in million $, except trading volumes which are in million shares. 1Q15 data as of 3/18/16. ¹1Q16 underwriting volumes and M&A data assumes a full quarter run rate based on data through 3/18/16. Source: Dealogic, SIFMA, Bloomberg, Strategic Insight Simfund and KBW Re
Slide 5: Our Strategy
Our Strategy
Slide 6: Strategic Vision
Strategic Vision To build a premier wealth management and investment banking firm 2,891 financial advisors in over 360 branches with more than $200B in client assets Private Client Asset Management Bank $24B in total assets managed through various strategies Equities Sales + Trading $7.3B in assets
Slide 7: A History of Growth
A History of Growth 2005 Legg Mason’s Capital Markets Division Acquired 2008 Butler Wick 2009 56 UBS Private Client Branches Acquired 2010 Thomas Weisel Partners 2007 Ryan Beck Acquisition Stifel Bank & Trust 2011 Stone & Youngberg 21% CAGR 2012 Miller Buckfire 2013 Knight Capital Group’s Fixed Inco
Slide 8: Balance Sheet Growth
Balance Sheet Growth $ in millions Stifel has resumed growth and has the potential to further leverage existing capital base
Slide 9: Acquisition Philosophy and Updates
Acquisition Philosophy and Updates
Slide 10: Acquisition Philosophy
Acquisition Philosophy Acquisition Philosophy Strategic combinations need to be accretive to: Shareholders Expected revenue and EPS growth in a reasonable timeframe Financial metrics: Ascertain our view of enterprise value Determine the split of value between shareholders and employees Capitalize pu
Slide 11: Barclays Overview and Return Analysis
$147 million total pre-tax investment, as follows: Non-GAAP charges, including stock-based compensation, assumed legacy broker notes, and integration expenses Goodwill in excess of net assets acquired $100 million total NPV after-tax investment Newly issued Stifel broker note amortization will be in
Slide 12: Non-GAAP Deal Integration Expenses
Non-GAAP Deal Integration Expenses
Slide 13: Stifel Overview
Stifel Overview
Slide 14: Stifel – Premier Investment Bank and Wealth Management Firm
Stifel – Premier Investment Bank and Wealth Management Firm Largest U.S. equity research platform Broad product portfolio & industry expertise Stifel at a Glance Non-GAAP Net Revenue - $2,335 million (2015) Global Wealth Management (GWM) Net Revenue - $1,377 million (2015) Private Client Stifel Bank
Slide 15: Stifel's Differentiated Value Proposition: Growth, Scale and Stability
Bulge Bracket Boutique Leading broker-dealer providing wealth management and institutional services to consumers and companies Stifel’s Differentiated Value Proposition: Growth, Scale and Stability Institutional Wealth Management #6 Largest Retail Brokerage Network(2) Size / scale Large distribution
Slide 16: Well-diversified, low risk business model
Well-diversified, low risk business model with balanced retail and institutional exposure Unburdened by capital constraints Low leverage business model and conservative risk management Limited balance sheet risk Stable wealth management business is augmented by profitable and growing institutional b
Slide 17: A Stable Track Record Through Multiple Business Cycles
CAGR reflects years 2006 through 2015. Book Value Per Share adjusted for April 2011 three-for-two stock split (2006-2010). CAGR: 18% CAGR: 24% Non-GAAP Net Revenues ($MM)(1) Non-GAAP Net Income ($MM)(1) Total Equity ($MM) (1) Total Client Assets(1) ($BN) Book Value Per Share(1) (2) CAGR: 20% CAGR: 1
Slide 18: Global Wealth Management
Global Wealth Management
Slide 19: Global Wealth Management Overview
Includes Independent Contractors. Global Wealth Management (GWM) Provides Securities Brokerage Services and Stifel Bank Products Net Revenues ($MM) Operating Contribution ($MM) Overview National Presence Grown from 600+ financial advisors in 2005 to over 2,800(1) financial advisors currently Proven
Slide 20: Building Scale and Capabilities into a $1.4B Revenue Segment
Building Scale and Capabilities into a $1.4B Revenue Segment… Private Client – 350 financial advisors and support Revenue production has exceeded expectations October 2009 Bank holding company Grown assets from ~ $100M to $7.3B April 2007 Private Client – 75 financial advisors Public Finance Decembe
Slide 21: GWM - Private Client Group Key Operating Metrics
Includes Independent Contractors. Key Operating Metrics Accounts Financial Advisors(1) Total Client Assets ($MM) Branches GWM - Private Client Group
Slide 22: GWM - Stifel Bank & Trust
GWM - Stifel Bank & Trust Investment Portfolio(2) Loan Portfolio(3) (Gross) 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 Balance sheet growth with low-risk assets
Slide 23: Growing Asset Management Capabilities
Growing Asset Management Capabilities Total Assets: $24.0 Billion¹ Assets* $10.4 Billion $9.8 Billion $2.2 Billion $648 Million $914 Million Offices Chicago St. Louis Milwaukee New York San Francisco Baltimore Cincinnati New York Philadelphia Baltimore New York Florham Park, NJ ¹As of 12/31/2015 Equ
Slide 24: Institutional Group
Institutional Group
Slide 25: Institutional Group Overview
Based on 2015 U.S. trading volume per Bloomberg. Includes Thomas Weisel historical investment banking revenues for years 2006 through September 30, 2010. 2012 includes realized and unrealized gains on the Company’s investment in Knight Capital Group, Inc. of $39.0 million. Institutional Group Net Re
Slide 26: Building Scale and Capabilities into a $1.0B Revenue Segment
Building Scale and Capabilities into a $1.0B Revenue Segment… Growth Focused Investment Banking, Research, Sales and Trading July 2010 Core of our Institutional sales, trading and research group December 2005 Fixed Income IB, Sales and Trading Private Client October 2011 FIG Investment Banking FIG S
Slide 27: Institutional Group – Investment Banking
Institutional Group – Investment Banking Accomplished U.S. Equity Underwriting Franchise – All Equity Transactions Bookrun Equity Deals Since 2010 All Managed Equity Deals Since 2010 ($ in billions) # of $ Rank Firm Deals Volume 1 Bank of America Merrill Lynch 1,355 $761.3 2 JPMorgan 1,326 $752.7 3
Slide 28: Institutional Group – Research
U.S. Equity Research Coverage (1) Coverage Balanced Across All Market Caps (1) Institutional Group – Research Stifel Research Highlights Largest U.S. Equity Research Platform Largest provider of U.S. Equity Research Largest provider of U.S. Small Cap Research² #1 U.S. provider of Financial Services
Slide 29: Institutional Group – Equity Sales and Trading
Institutional Equity Sales Equity Trading Institutional Group – Equity Sales and Trading Extensive Distribution Network Powerful Platform Spanning North America and Europe Relationships with over 3,500 institutional accounts globally Active daily market maker in over 3,700 stocks Traded over 11.1 bi
Slide 30: Institutional Group – Fixed Income Capital Markets
Overview Institutional Group – Fixed Income Capital Markets Client Distribution (1)(2) Platform & Products Client Distribution is as of 2/18/2016 Other category includes: Credit Union, Corporation, Hedge Fund, Pension Fund, Trust Company, Foundation, Endowment, University & Non-Profit. Comprehensive
Slide 31: Institutional Group – Public Finance
Overview Institutional Group – Public Finance Stifel has ranked in the top ten nationally for senior managed negotiated underwritings for the past five years, and Stifel has ranked #1nationally for senior managed K-12 negotiated underwritings for 2015. Stifel’s Public Finance Group ranked #1 in muni
Slide 32: Financial Information
Financial Information
Slide 33: Stifel Financial Results – Three months ended December 31
Stifel Financial Results Three months ended December 31, 2015 (1) (2) (2) Adjustments consist primarily of acquisition related expenses, which management believes are duplicative and will be eliminated, stock-based compensation and other expenses which in management’s view are not representative of
Slide 34: Stifel Financial Results – Year ended December 31, 2015
Stifel Financial Results Year ended December 31, 2015 (1) (2) Adjustments consist primarily of acquisition related expenses, which management believes are duplicative and will be eliminated, stock-based compensation and other expenses which in management’s view are not representative of on-going bus
Slide 35: Source of Revenues
Source of Revenues STIFEL Year Ended % % % (S in thousands} 12/31/15 —_12/31/14_—_Change 9/30/15 Change | 12/31/15 Bsyi4_—_ Change Commissions $ 187,287 $ 180,127 40% $ 19808 (3.5%) |$ 749,536 $ 680,197 86% Principal transactions 107,464 91617 _-17.3% 95593 124% |__ 389,319 409.929 (5.0% Brokerage r
Slide 36: Brokerage and Investment Banking Revenues
Brokerage and Investment Banking Revenues
Slide 37: Non-GAAP Non-Interest Expenses
Non-GAAP Non-Interest Expenses(1) Excludes adjustments for duplicative items associated with the integration of acquired businesses (merger-related expenses).
Slide 38: Global Wealth Management
Global Wealth Management * Percentage not meaningful.
Slide 39: Stifel Bank & Trust – An Operating Unit of GWM
Stifel Bank & Trust An Operating Unit of GWM Note: Actual amounts presented above are as of period-end and yields are based off of quarter-to-date averages. Investment securities includes available-for-sale and held-to-maturity securities. Includes loans held for sale. Excluding acquired loans (purc
Slide 40: Institutional Group
Institutional Group STIFEL Year Ended (Sin thousands) 12/31/15__12/31/14_% Change —_ 9/30/15 % Change 12/31/14 __9% Change Net revenues $ 246,325 $ 276222 (10.8%) $ 232,125 6.1% |$ 975,594 $ 997,071 (2.2%) Compensation and benefits 143,162 169,226 (15.4%) 3,911 -—(05%6) | 596,561 612,330 (2.6%) Non-
Slide 41: Non-GAAP Other Segment Year-Over-Year Change
Non-GAAP Other Segment Year-Over-Year Change
Slide 42: Capital Structure
Debt to equity ratio includes the debentures to Stifel Financial Capital Trusts and Senior Notes divided by stockholders’equity. Capital Structure
Slide 43: Share Repurchases
Share Repurchases 9.1 Million Shares Remain Under The Current Authorization
Stifel Financial — Investor Presentation (March 2016) on 6ix