EX-99.2 3 d895920dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

 

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Third Quarter 2024 Earnings Results

 

 

Quarterly Financial Supplement      Page  

 

   

Consolidated Financial Highlights

    2

GAAP Consolidated Results of Operations

    3

Non-GAAP Consolidated Results of Operations

    4

Consolidated Financial Summary

    5

Consolidated Financial Information and Metrics

    6

Regulatory Capital

    7

Global Wealth Management - Summary Results of Operations

    8

Global Wealth Management - Statistical Information

    9

Institutional Group - Summary Results of Operations

    11

Stifel Bancorp - Financial Information and Credit Metrics

    12

Stifel Bancorp - Loan and Investment Portfolio

    13

Loans and Lending Commitments - Allowance for Credit Losses

    14

Consolidated Net Interest Income

    15

Stifel Bancorp Net Interest Income

    16

GAAP to Core Reconciliation

    17

Footnotes

    18

Disclaimer and Legal Notice

    19

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Third Quarter 2024 Earnings Release    Page 1 of 19

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Consolidated Financial Highlights

 

 

     Three Months Ended     Nine Months Ended  
(Unaudited, 000s, except per share information)    9/30/2024      9/30/2023      % Change     6/30/2024      % Change     9/30/2024      9/30/2023      % Change  

Net revenues

    $  1,224,668      $  1,045,051        17.2 %    $  1,217,932        0.6 %    $  3,605,638      $  3,202,565        12.6 % 

Net income

    $ 158,505      $ 68,161        132.5 %    $ 165,294        (4.1 %)    $ 487,374      $ 360,052        35.4 % 

Preferred dividends

      9,320        9,321        (0.0 %)      9,321        (0.0 %)      27,961        27,961        0.0 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  
Net income available to common shareholders    $ 149,185      $ 58,840        153.5 %    $ 155,973        (4.4 %)    $ 459,413      $ 332,091        38.3 % 
Earnings per diluted common share    $ 1.42      $ 0.60        136.7 %    $ 1.50        (5.3 %)    $ 4.42      $ 3.15        40.3 % 
Earnings per diluted common share available to common shareholders    $ 1.34      $ 0.52        157.7 %    $ 1.41        (5.0 %)    $ 4.16      $ 2.91        43.0 % 

Non-GAAP financial summary (1):

                      

Net revenues

    $ 1,225,351      $ 1,045,028        17.3 %    $ 1,217,941        0.6 %    $ 3,606,330      $ 3,202,539        12.6 % 

Net income

    $ 175,590      $ 76,734        128.8 %    $ 185,891        (5.5 %)    $ 534,147      $ 392,898        36.0 % 

Preferred dividends

      9,320        9,321        (0.0 %)      9,321        (0.0 %)      27,961        27,961        0.0 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  
Net income available to common shareholders    $ 166,270        67,413        146.6 %      176,570        (5.8 %)      506,186        364,937        38.7 % 
Earnings per diluted common share    $ 1.58      $ 0.68        132.4 %    $ 1.69        (6.5 %)    $ 4.84      $ 3.44        40.7 % 
Earnings per diluted common share available to common shareholders    $ 1.50      $ 0.60        150.0 %    $ 1.60        (6.3 %)    $ 4.58      $ 3.20        43.1 % 
                     
Weighted average number of common shares outstanding:

 

           

Basic

      103,966        106,068        (2.0 %)      104,150        (0.2 %)      104,135        107,580        (3.2 %) 

Diluted

      110,994        113,195        (1.9 %)      110,285        0.6 %      110,457        114,170        (3.3 %) 
Period end common shares outstanding      102,313        103,120        (0.8 %)      102,518        (0.2 %)      102,313        103,120        (0.8 %) 
Cash dividends declared per common share    $ 0.42      $ 0.36        16.7 %    $ 0.42        0.0 %    $ 1.26      $ 1.08        16.7 % 

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Third Quarter 2024 Earnings Release    Page 2 of 19

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GAAP Consolidated Results of Operations

 

 

     Three Months Ended     Nine Months Ended  
(Unaudited, 000s, except per share information)    9/30/2024      9/30/2023      % Change     6/30/2024      % Change     9/30/2024      9/30/2023     % Change  

Revenues:

                     

Commissions

    $ 183,445      $ 165,075        11.1 %    $ 183,317        0.1 %    $ 552,238      $ 499,983       10.5 % 

Principal transactions

      137,089        114,841        19.4 %      153,574        (10.7 %)      429,677        336,063       27.9 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Transactional revenues

      320,534        279,916        14.5 %      336,891        (4.9 %)      981,915        836,046       17.4 % 

Capital raising

      106,325        49,615        114.3 %      101,870        4.4 %      302,892        189,381       59.9 % 

Advisory

      136,857        97,272        40.7 %      131,411        4.1 %      387,520        336,210       15.3 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Investment banking

      243,182        146,887        65.6 %      233,281        4.2 %      690,412        525,591       31.4 % 

Asset management

      382,616        333,127        14.9 %      380,757        0.5 %      1,130,849        968,960       16.7 % 

Other income

      18,705        459        nm       16,180        15.6 %      39,835        (940 )      nm  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Operating revenues

      965,037        760,389        26.9 %      967,109        (0.2 %)      2,843,011        2,329,657       22.0 % 

Interest revenue

      510,823        505,198        1.1 %      498,152        2.5 %      1,515,803        1,439,532       5.3 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total revenues

      1,475,860        1,265,587        16.6 %      1,465,261        0.7 %      4,358,814        3,769,189       15.6 % 

Interest expense

      251,192        220,536        13.9 %      247,329        1.6 %      753,176        566,624       32.9 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net revenues

      1,224,668        1,045,051        17.2 %      1,217,932        0.6 %      3,605,638        3,202,565       12.6 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Non-interest expenses:

                     

Compensation and benefits

      718,065        613,287        17.1 %      722,719        (0.6 %)      2,120,479        1,880,144       12.8 % 

Occupancy and equipment rental

      89,625        84,396        6.2 %      89,852        (0.3 %)      268,189        251,140       6.8 % 

Communication and office supplies

      48,869        46,215        5.7 %      48,181        1.4 %      144,417        137,320       5.2 % 

Commissions and floor brokerage

      16,239        14,413        12.7 %      14,383        12.9 %      46,389        42,965       8.0 % 

Provision for credit losses

      5,287        9,992        (47.1 %)      2,954        79.0 %      13,509        22,736       (40.6 %) 

Investment banking expenses

      12,997        3,791        242.8 %      9,253        40.5 %      29,979        16,829       78.1 % 

Other operating expenses

      116,928        163,528        (28.5 %)      103,696        12.8 %      320,433        350,734       (8.6 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total non-interest expenses

      1,008,010        935,622        7.7 %      991,038        1.7 %      2,943,395        2,701,868       8.9 % 

Income before income taxes

      216,658        109,429        98.0 %      226,894        (4.5 %)      662,243        500,697       32.3 % 

Provision for income taxes

      58,153        41,268        40.9 %      61,600        (5.6 %)      174,869        140,645       24.3 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net income

      158,505        68,161        132.5 %      165,294        (4.1 %)      487,374        360,052       35.4 % 

Preferred dividends

      9,320        9,321        (0.0 %)      9,321        (0.0 %)      27,961        27,961       0.0 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net income available to common shareholders

    $ 149,185      $ 58,840        153.5 %    $ 155,973        (4.4 %)    $ 459,413      $ 332,091       38.3 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Earnings per common share:

                     

Basic

    $ 1.43      $ 0.55        160.0 %    $ 1.50        (4.7 %)    $ 4.41      $ 3.09       42.7 % 

Diluted

    $ 1.34      $ 0.52        157.7 %    $ 1.41        (5.0 %)    $ 4.16      $ 2.91       43.0 % 

Weighted average number of common shares outstanding:

 

          

Basic

      103,966        106,068        (2.0 %)      104,150        (0.2 %)      104,135        107,580       (3.2 %) 

Diluted

      110,994        113,195        (1.9 %)      110,285        0.6 %      110,457        114,170       (3.3 %) 

Cash dividends declared per common share

    $ 0.42      $ 0.36        16.7 %    $ 0.42        0.0 %    $ 1.26      $ 1.08       16.7 % 

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Third Quarter 2024 Earnings Release    Page 3 of 19

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Non-GAAP Consolidated Results of Operations (1)

 

 

     Three Months Ended     Nine Months Ended  
(Unaudited, 000s, except per share information)    9/30/2024      9/30/2023      % Change     6/30/2024      % Change     9/30/2024      9/30/2023     % Change  

Revenues:

                     

Commissions

    $ 183,445      $ 165,075        11.1 %    $ 183,317        0.1 %    $ 552,238      $ 499,983       10.5 % 

Principal transactions

      137,080        114,841        19.4 %      153,583        (10.7 %)      429,677        336,063       27.9 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Transactional revenues

      320,525        279,916        14.5 %      336,900        (4.9 %)      981,915        836,046       17.4 % 

Capital raising

      106,325        49,615        114.3 %      101,870        4.4 %      302,892        189,381       59.9 % 

Advisory

      136,857        97,272        40.7 %      131,411        4.1 %      387,520        336,210       15.3 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Investment banking

      243,182        146,887        65.6 %      233,281        4.2 %      690,412        525,591       31.4 % 

Asset management

      382,616        333,127        14.9 %      380,757        0.5 %      1,130,849        968,960       16.7 % 

Other income

      19,399        436        nm       16,180        19.9 %      40,529        (963 )      nm  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Operating revenues

      965,722        760,366        27.0 %      967,118        (0.1 %)      2,843,705        2,329,634       22.1 % 

Interest revenue

      510,821        505,198        1.1 %      498,152        2.5 %      1,515,801        1,439,532       5.3 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total revenues

      1,476,543        1,265,564        16.7 %      1,465,270        0.8 %      4,359,506        3,769,166       15.7 % 

Interest expense

      251,192        220,536        13.9 %      247,329        1.6 %      753,176        566,627       32.9 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net revenues

      1,225,351        1,045,028        17.3 %      1,217,941        0.6 %      3,606,330        3,202,539       12.6 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Non-interest expenses:

                     

Compensation and benefits

      710,703        606,116        17.3 %      706,994        0.5 %      2,091,859        1,857,197       12.6 % 

Occupancy and equipment rental

      89,469        84,342        6.1 %      89,727        (0.3 %)      267,861        250,960       6.7 % 

Communication and office supplies

      48,715        46,215        5.4 %      48,148        1.2 %      144,227        137,314       5.0 % 

Commissions and floor brokerage

      16,239        14,413        12.7 %      14,383        12.9 %      46,389        42,965       8.0 % 

Provision for credit losses

      5,287        9,992        (47.1 %)      2,954        79.0 %      13,509        22,736       (40.6 %) 

Investment banking expenses

      12,997        3,791        242.8 %      9,253        40.5 %      29,979        16,829       78.1 % 

Other operating expenses

      106,072        156,959        (32.4 %)      95,806        10.7 %      295,116        327,540       (9.9 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total non-interest expenses

      989,482        921,828        7.3 %      967,265        2.3 %      2,888,940        2,655,541       8.8 % 

Income before income taxes

      235,869        123,200        91.5 %      250,676        (5.9 %)      717,390        546,998       31.2 % 

Provision for income taxes

      60,279        46,466        29.7 %      64,785        (7.0 %)      183,243        154,100       18.9 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net income

      175,590        76,734        128.8 %      185,891        (5.5 %)      534,147        392,898       36.0 % 

Preferred dividends

      9,320        9,321        (0.0 %)      9,321        (0.0 %)      27,961        27,961       0.0 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net income available to common shareholders

    $ 166,270      $ 67,413        146.6 %    $ 176,570        (5.8 %)    $ 506,186      $ 364,937       38.7 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Earnings per common share:

                     

Basic

    $ 1.60      $ 0.64        150.0 %    $ 1.70        (5.9 %)    $ 4.86      $ 3.39       43.4 % 

Diluted

    $ 1.50      $ 0.60        150.0 %    $ 1.60        (6.3 %)    $ 4.58      $ 3.20       43.1 % 

Weighted average number of common shares outstanding:

 

          

Basic

      103,966        106,068        (2.0 %)      104,150        (0.2 %)      104,135        107,580       (3.2 %) 

Diluted

      110,994        113,195        (1.9 %)      110,285        0.6 %      110,457        114,170       (3.3 %) 

Cash dividends declared per common share

    $ 0.42      $ 0.36        16.7 %    $ 0.42        0.0 %    $ 1.26      $ 1.08       16.7 % 

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Third Quarter 2024 Earnings Release    Page 4 of 19

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Consolidated Financial Summary

 

 

     Three Months Ended     Nine Months Ended  
(Unaudited, 000s)    9/30/2024     9/30/2023     % Change     6/30/2024     % Change     9/30/2024     9/30/2023     % Change  

Net revenues:

                 

Global Wealth Management

    $ 827,116     $ 768,558       7.6 %    $ 801,135       3.2 %    $ 2,418,751     $ 2,283,934       5.9 % 

Institutional Group

      372,401       256,888       45.0 %      390,721       (4.7 %)      1,114,498       867,025       28.5 % 

Other

      25,151       19,605       28.3 %      26,076       (3.5 %)      72,389       51,606       40.3 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenues

    $ 1,224,668     $ 1,045,051       17.2 %    $ 1,217,932       0.6 %    $ 3,605,638     $ 3,202,565       12.6 % 

Operating expenses:

                 

Global Wealth Management

    $ 525,413     $ 470,109       11.8 %    $ 501,962       4.7 %    $ 1,527,127     $ 1,369,472       11.5 % 

Institutional Group

      330,604       284,692       16.1 %      341,908       (3.3 %)      986,779       872,696       13.1 % 

Other

      151,993       180,821       (15.9 %)      147,168       3.3 %      429,489       459,700       (6.6 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

    $ 1,008,010     $ 935,622       7.7 %    $ 991,038       1.7 %    $ 2,943,395     $ 2,701,868       8.9 % 

Operating contribution:

                 

Global Wealth Management

    $ 301,703     $ 298,449       1.1 %    $ 299,173       0.8 %    $ 891,624     $ 914,462       (2.5 %) 

Institutional Group

      41,797       (27,804 )      250.3 %      48,813       (14.4 %)      127,719       (5,671 )      nm  

Other

      (126,842 )      (161,216 )      (21.3 %)      (121,092 )      4.7 %      (357,100 )      (408,094 )      (12.5 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 216,658     $ 109,429       98.0 %    $ 226,894       (4.5 %)    $ 662,243     $ 500,697       32.3 % 

Financial ratios:

                 

Compensation and benefits

      58.6 %      58.7 %      (10 )      59.3 %      (70 )      58.8 %      58.7 %      10  

Non-compensation operating expenses

      23.7 %      30.8 %      (710 )      22.1 %      160       22.8 %      25.7 %      (290 ) 

Income before income taxes

      17.7 %      10.5 %      720       18.6 %      (90 )      18.4 %      15.6 %      280  

Effective tax rate

      26.8 %      37.7 %      (1,090 )      27.1 %      (30 )      26.4 %      28.1 %      (170 ) 

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Third Quarter 2024 Earnings Release    Page 5 of 19

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Consolidated Financial Information and Metrics

 

 

 

     As of and for the Three Months Ended  
(Unaudited, 000s, except per share data)    9/30/2024     9/30/2023      % Change      6/30/2024      % Change   

Financial Information:

 

Total assets

    $    38,934,504     $    37,877,577       2.8 %    $    37,809,278       3.0 % 

Total shareholders’ equity

    $ 5,557,080     $ 5,242,594       6.0 %    $ 5,398,207       2.9 % 

Total common equity

    $ 4,872,080     $ 4,557,594       6.9 %    $ 4,713,207       3.4 % 

Goodwill and intangible assets

    $ (1,511,258 )    $ (1,526,572 )      (1.0 %)    $ (1,509,642 )      0.1 % 

DTL on goodwill and intangible assets

    $ 79,071     $ 69,187       14.3 %    $ 76,805       3.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Tangible common equity

    $ 3,439,893     $ 3,100,209       11.0 %    $ 3,280,370       4.9 % 

Preferred equity

    $ 685,000     $ 685,000       0.0 %    $ 685,000       0.0 % 

Financial Metrics:

 

Book value per common share (2)

    $ 47.62     $ 44.20       7.7 %    $ 45.97       3.6 % 

Tangible book value per common share (2)

    $ 33.62     $ 30.06       11.8 %    $ 32.00       5.1 % 

Return on common equity (3)

      12.3 %      5.1 %        13.4 %   

Non-GAAP return on common equity (1)(3)

      13.7 %      5.8 %        15.1 %   

Return on tangible common equity (4)

      17.5 %      7.4 %        19.3 %   

Non-GAAP return on tangible common equity (1)(4)

      19.5 %      8.5 %        21.9 %   

Pre-tax margin on net revenues

      17.7 %      10.5 %        18.6 %   

Non-GAAP pre-tax margin on net revenues (1)

      19.2 %      11.8 %        20.6 %   

Effective tax rate

      26.8 %      37.7 %        27.1 %   

Non-GAAP effective tax rate (1)

      25.6 %      37.7 %        25.8 %   

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Third Quarter 2024 Earnings Release    Page 6 of 19

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Regulatory Capital (5)

 

 

(Unaudited, 000s)    9/30/2024     9/30/2023       % Change     6/30/2024       % Change  

SF Regulatory Capital:

 

Common equity tier 1 capital

    $    3,474,275     $    3,228,952       7.6 %    $    3,359,436       3.4 % 

Tier 1 capital

    $ 4,159,275     $ 3,913,952       6.3 %    $ 4,044,436       2.8 % 

Risk-weighted assets

    $ 23,183,953     $ 23,218,858       (0.2 %)    $ 22,734,081       2.0 % 

Common equity tier 1 capital ratio

      15.0 %      13.9 %        14.8 %   

Tier 1 risk based capital ratio

      17.9 %      16.9 %        17.8 %   

Tier 1 leverage capital ratio

      11.3 %      10.8 %        11.1 %   

Stifel Bank & Trust Regulatory Capital:

 

Common equity tier 1 capital

    $ 1,306,476     $ 1,489,819       (12.3 %)    $ 1,268,458       3.0 % 

Tier 1 capital

    $ 1,306,476     $ 1,489,819       (12.3 %)    $ 1,268,458       3.0 % 

Risk-weighted assets

    $ 12,214,040     $ 13,782,746       (11.4 %)    $ 11,619,733       5.1 % 

Common equity tier 1 capital ratio

      10.7 %      10.8 %        10.9 %   

Tier 1 risk based capital ratio

      10.7 %      10.8 %        10.9 %   

Tier 1 leverage capital ratio

      7.1 %      7.7 %        7.1 %   

Stifel Bank Regulatory Capital:

 

Common equity tier 1 capital

    $ 758,397     $ 690,456       9.8 %    $ 742,135       2.2 % 

Tier 1 capital

    $ 758,397     $ 690,456       9.8 %    $ 742,135       2.2 % 

Risk-weighted assets

    $ 5,591,440     $ 4,724,176       18.4 %    $ 5,662,622       (1.3 %) 

Common equity tier 1 capital ratio

      13.6 %      14.6 %        13.1 %   

Tier 1 risk based capital ratio

      13.6 %      14.6 %        13.1 %   

Tier 1 leverage capital ratio

      7.1 %      7.1 %        7.1 %   

Stifel Net Capital:

 

Net capital

    $ 486,400     $ 395,400       23.0 %    $ 456,500       6.5 % 

Excess net capital

    $ 462,700     $ 373,800       23.8 %    $ 433,700       6.7 % 

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Third Quarter 2024 Earnings Release    Page 7 of 19

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Global Wealth Management - Summary Results of Operations

 

 

     Three Months Ended     Nine Months Ended  
(Unaudited, 000s)    9/30/2024     9/30/2023     % Change     6/30/2024     % Change     9/30/2024     9/30/2023     % Change  

Revenues:

                 

Commissions

    $   129,230     $   112,300       15.1 %    $   121,465       6.4 %    $   371,912     $   332,327       11.9 % 

Principal transactions

      63,497       53,247       19.2 %      55,843       13.7 %      179,876       152,433       18.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactional revenues

      192,727       165,547       16.4 %      177,308       8.7 %      551,788       484,760       13.8 % 

Asset management

      382,309       333,088       14.8 %      380,737       0.4 %      1,130,496       968,863       16.7 % 

Net interest

      240,825       269,431       (10.6 %)      236,281       1.9 %      713,375       828,708       (13.9 %) 

Investment banking (6)

      6,217       3,895       59.6 %      5,780       7.6 %      16,277       12,118       34.3 % 

Other income

      5,038       (3,403 )      248.0 %      1,029       389.6 %      6,815       (10,515 )      164.8 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

      827,116       768,558       7.6 %      801,135       3.2 %      2,418,751       2,283,934       5.9 % 

Non-interest expenses:

 

            

Compensation and benefits

      403,205       359,325       12.2 %      392,941       2.6 %      1,185,682       1,055,834       12.3 % 

Non-compensation operating expenses

      122,208       110,784       10.3 %      109,021       12.1 %      341,445       313,638       8.9 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-interest expenses

      525,413       470,109       11.8 %      501,962       4.7 %      1,527,127       1,369,472       11.5 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Income before income taxes    $ 301,703     $ 298,449       1.1 %    $ 299,173       0.8 %    $ 891,624     $ 914,462       (2.5 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
                

As a percentage of net revenues:

 

          

Compensation and benefits

      48.7 %      46.8 %      190       49.0 %      (30 )      49.0 %      46.2 %      280  

Non-compensation operating expenses

      14.8 %      14.4 %      40       13.7 %      110       14.1 %      13.8 %      30  

Income before income taxes

      36.5 %      38.8 %      (230 )      37.3 %      (80 )      36.9 %      40.0 %      (310 ) 

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Third Quarter 2024 Earnings Release    Page 8 of 19

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Global Wealth Management - Statistical Information

 

 

     As of and for the Three Months Ended  
(Unaudited, 000s, except financial advisors)      9/30/2024         9/30/2023        % Change        6/30/2024        % Change   

Financial advisors (including independent contractors) (7)

      2,357       2,374       (0.7 %)      2,359       (0.1 %) 

Total client assets

    $ 496,298,000     $ 412,458,000       20.3 %    $ 474,137,000       4.7 % 

Fee-based client assets

    $ 190,771,000     $ 150,982,000       26.4 %    $ 179,749,000       6.1 % 

Transactional assets

    $ 305,527,000     $ 261,476,000       16.8 %    $ 294,388,000       3.8 % 

Secured client lending (8)

    $ 3,242,000     $ 3,083,000       5.2 %    $ 3,250,000       (0.2 %) 

Asset Management Revenue:

           

Private Client Group (9)

    $ 322,758     $ 279,807       15.4 %    $ 317,616       1.6 % 

Asset Management

      38,314       33,211       15.4 %      37,556       2.0 % 

Third-party Bank Sweep Program

      8,417       7,023       19.8 %      11,319       (25.6 %) 

Other (10)

      13,127       13,086       0.3 %      14,266       (8.0 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total asset management revenues

    $ 382,616     $ 333,127       14.9 %    $ 380,757       0.5 % 

Fee-based Assets (millions):

           

Private Client Group (9)

    $ 166,768     $ 132,712       25.7 %    $ 157,124       6.1 % 

Asset Management

      42,049       33,519       25.4 %      39,714       5.9 % 

Elimination (11)

      (18,046 )      (15,249 )      18.3 %      (17,089 )      5.6 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fee-based assets

    $ 190,771     $ 150,982       26.4 %    $ 179,749       6.1 % 

Third-party Bank Sweep Program

    $ 698     $ 578       20.8 %    $ 820       (14.9 %) 

ROA (bps) (12):

           

Private Client Group (9)

      82.2       82.5         81.9    

Asset Management

      36.4       39.6         37.8    

Third-party Bank Sweep Program

      450.1       429.7         487.3    

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Third Quarter 2024 Earnings Release    Page 9 of 19

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Global Wealth Management - Statistical Information (Cont.)

 

 

     As of and for the Three Months Ended  
(Unaudited, millions)      9/30/2024          9/30/2023         % Change        6/30/2024         % Change   

Stifel Bancorp Deposits:

              

Smart Rate Deposits

    $ 16,315      $ 13,605        19.9 %    $ 15,819        3.1 % 

Sweep Deposits

      9,637        11,142        (13.5 %)      9,148        5.3 % 

Direct Wealth Management Deposits at Stifel Bancorp

      369        397        (7.1 %)      225        64.0 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total Stifel Bancorp Wealth Management Deposits

      26,321        25,144        4.7 %      25,192        4.5 % 

Other Bank Deposits

      1,800        2,450        (26.5 %)      1,948        (7.6 %) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total Stifel Bancorp Deposits

    $ 28,121      $ 27,594        1.9 %    $ 27,140        3.6 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Short-term Treasuries (13)

    $ 7,321      $ 7,586        (3.5 %)    $ 8,136        (10.0 %) 

Third-party Commercial Treasury Deposits (14)

    $ 2,215      $ —        nm     $ 1,539        43.9 % 

Wealth Management Cash:

              

Stifel Bancorp Wealth Management Deposits

    $ 26,321      $ 25,144        4.7 %    $ 25,192        4.5 % 

Third-party Bank Sweep Program (14)

      698        578        20.8 %      820        (14.9 %) 

Third-party Treasury (14)

      149        —        nm       153        (2.6 %) 

Other Sweep Cash

      320        173        85.0 %      417        (23.3 %) 

Money Market Mutual Funds

      11,301        8,760        29.0 %      10,530        7.3 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total Wealth Management Cash

    $ 38,789      $ 34,655        11.9 %    $ 37,112        4.5 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Client money market and insured product (15)

    $ 26,970      $ 25,498        5.8 %    $ 26,204        2.9 % 

Third-party Deposits Available to Stifel Bancorp (14)

    $ 3,062      $ 578        429.8 %    $ 2,512        21.9 % 

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Third Quarter 2024 Earnings Release    Page 10 of 19

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Institutional Group - Summary Results of Operations

 

 

     Three Months Ended     Nine Months Ended  
(Unaudited, 000s)     9/30/2024       9/30/2023       % Change       6/30/2024       % Change       9/30/2024       9/30/2023       % Change   

Revenues:

                 

Commissions

    $ 54,215     $ 52,775       2.7 %    $ 61,852       (12.3 %)    $ 180,326     $ 167,656       7.6 % 

Principal transactions

      73,583       61,594       19.5 %      97,740       (24.7 %)      249,801       183,630       36.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactional revenues

      127,798       114,369       11.7 %      159,592       (19.9 %)      430,127       351,286       22.4 % 

Capital raising

      100,108       45,719       119.0 %      96,090       4.2 %      286,615       177,263       61.7 % 

Advisory

      136,857       97,272       40.7 %      131,411       4.1 %      387,520       336,210       15.3 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment banking

      236,965       142,991       65.7 %      227,501       4.2 %      674,135       513,473       31.3 % 

Other income (16)

      7,638       (472 )      nm       3,628       110.5 %      10,236       2,266       351.7 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

      372,401       256,888       45.0 %      390,721       (4.7 %)      1,114,498       867,025       28.5 % 

Non-interest expenses:

 

            

Compensation and benefits

      224,556       192,638       16.6 %      239,036       (6.1 %)      679,341       592,701       14.6 % 

Non-compensation operating expenses

      106,048       92,054       15.2 %      102,872       3.1 %      307,438       279,995       9.8 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-interest expenses

      330,604       284,692       16.1 %      341,908       (3.3 %)      986,779       872,696       13.1 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income/(loss) before income taxes

    $ 41,797     $ (27,804 )      250.3 %    $ 48,813       (14.4 %)    $ 127,719     $ (5,671 )      nm  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
                

As a percentage of net revenues:

 

        

Compensation and benefits

      60.3 %      75.0 %      (1,470 )      61.2 %      (90 )      61.0 %      68.4 %      (740 ) 

Non-compensation operating expenses

      28.5 %      35.8 %      (730 )      26.3 %      220       27.5 %      32.3 %      (480 ) 

Income before income taxes

      11.2 %      (10.8 %)      2,200       12.5 %      (130 )      11.5 %      (0.7 %)      1,220  

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Third Quarter 2024 Earnings Release    Page 11 of 19

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Stifel Bancorp - Financial Information and Credit Metrics

 

 

(Unaudited, 000s)    9/30/2024     9/30/2023      % Change      6/30/2024      % Change   

Stifel Bancorp Financial Information:

 

Total assets

    $   30,416,173     $   29,872,977       1.8 %    $   29,325,680       3.7 % 

Total shareholder’s equity

    $ 2,091,052     $ 2,162,000       (3.3 %)    $ 1,996,585       4.7 % 

Total loans, net (includes loans held for sale)

    $ 20,633,425     $ 20,435,170       1.0 %    $ 19,819,771       4.1 % 

Residential real estate

      8,406,932       7,957,027       5.7 %      8,253,851       1.9 % 

Commercial and industrial

      3,896,824       4,367,671       (10.8 %)      3,689,379       5.6 % 

Fund banking

      3,762,960       4,114,889       (8.6 %)      3,346,785       12.4 % 

Securities-based loans

      2,273,246       2,317,631       (1.9 %)      2,253,045       0.9 % 

Construction and land

      1,219,787       851,709       43.2 %      1,198,395       1.8 % 

Commercial real estate

      565,686       670,907       (15.7 %)      608,911       (7.1 %) 

Other

      224,146       172,555       29.9 %      204,392       9.7 % 

Loans held for sale

      465,739       142,617       226.6 %      472,804       (1.5 %) 

Investment securities

    $ 8,231,240     $ 7,411,040       11.1 %    $ 7,641,586       7.7 % 

Available-for-sale securities, at fair value

      1,618,289       1,512,233       7.0 %      1,583,477       2.2 % 

Held-to-maturity securities, at amortized cost

      6,612,951       5,898,807       12.1 %      6,058,109       9.2 % 

Unrealized losses on available-for-sale securities

      (134,116 )      (250,506 )      (46.5 %)      (187,259 )      (28.4 %) 

Total deposits

    $ 28,120,518     $ 27,594,358       1.9 %    $ 27,139,753       3.6 % 

Demand deposits (interest-bearing)

      27,539,904       27,335,890       0.7 %      26,754,212       2.9 % 

Demand deposits (non-interest-bearing)

      309,982       258,466       19.9 %      304,795       1.7 % 

Certificates of deposit

      270,632       2       nm       80,746       235.2 % 
          

Credit Metrics:

           

Allowance for credit losses

    $ 163,274     $ 169,822       (3.9 %)    $ 164,959       (1.0 %) 

Allowance as a percentage of retained loans

      0.80 %      0.83 %        0.84 %   

Net charge-offs as a percentage of average loans

      0.03 %      0.00 %        0.01 %   

Total nonperforming assets

    $ 144,122     $ 50,719       184.2 %    $ 85,247       69.1 % 

Nonperforming assets as a percentage of total assets

      0.47 %      0.17 %        0.29 %   

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Third Quarter 2024 Earnings Release    Page 12 of 19

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Stifel Bancorp - Loan and Investment Portfolio

 

 

(Unaudited, millions)    9/30/2024        % of Total  
Portfolio		                    

Loan Portfolio

        

Commercial Portfolio by Major Sector

 

Residential real estate

    $ 8,407        32 %   

Industrials

    $     950           24 % 

Securities-based loans

      2,273        9 %   

Financials

      926        24 % 

Home equity lines of credit and other

      224        1 %   

Information technology

      634        16 % 

 

     

 

 

          

Total consumer

      10,904        42 %   

Consumer discretionary

      402        10 % 

 

     

 

 

          

Commercial and industrial

      3,897        15 %   

Materials

      261        7 % 

Fund banking

      3,763        15 %   

REITs

      222        6 % 

Construction and land

      1,220        5 %   

Healthcare

      164        4 % 

Commercial real estate

      566        2 %   

Hotel, leisure, restaurants

      133        3 % 

 

     

 

 

          

Total commercial

      9,446        37 %   

Communication services

      100        3 % 

 

     

 

 

          

Total loan portfolio

      20,350        79 %   

Consumer staples

      67        2 % 

 

     

 

 

          

Unfunded commitments

      5,308        21 %         

 

     

 

 

          

Total

    $    25,658        100 %         

 

     

 

 

          
       

CLO by Major Sector

 

       

High tech industries

    $ 667        10 % 

Investment Portfolio

        

Banking, finance, insurance, & real estate

      621        9 % 

CLO

    $ 6,558        79 %   

Services: business

      613        9 % 

Agency MBS

      1,020        12 %   

Healthcare & pharmaceuticals

      608        9 % 

Corporate bonds

      526        6 %   

Construction & building

      303        5 % 

SBA

      102        1 %   

Hotel, gaming, & leisure

      300        5 % 

Student loan ARS

      87        1 %   

Chemicals, plastics, & rubber

      270        4 % 

CMBS

      69        1 %   

Services: consumer

      256        4 % 

Other

      3        0 %   

Telecommunications

      239        4 % 

 

     

 

 

          

Total Portfolio

    $ 8,365        100 %   

Media: broadcasting & subscription

      224        3 % 

 

     

 

 

          

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Third Quarter 2024 Earnings Release    Page 13 of 19

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Loans and Lending Commitments - Allowance for Credit Losses

 

 

     September 30, 2024               
     Loans and Lending                                    
(Unaudited, 000s)    Commitments             ACL      ACL %            Q3 Provision  

Residential real estate

    $ 8,406,932         $ 11,270        0.1 %       $ 28  

Commercial and industrial

      3,896,824           79,862        2.0 %         10,321  

Fund banking

      3,762,960           10,537        0.3 %         (1,642 ) 

Securities-based loans

      2,273,246           2,853        0.1 %         40  

Construction and land

      1,219,787           19,775        1.6 %         3,396  

Commercial real estate

      565,686           12,315        2.2 %         (2,997 ) 

Other

      224,146           738        0.3 %         62  
  

 

 

        

 

 

          

 

 

  

Loans held for investment, gross

      20,349,581           137,350        0.7 %         9,208  

Loans held for sale

      465,739                
  

 

 

                

Total loans, gross

      20,815,320                

Lending commitments

      5,307,957           25,924              0.5 %         (3,921 ) 
  

 

 

        

 

 

          

 

 

  

Loans and lending commitments

    $       26,123,277         $     163,274           $       5,287  
  

 

 

        

 

 

          

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Third Quarter 2024 Earnings Release    Page 14 of 19

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Consolidated Net Interest Income

 

 

    Three Months Ended  
    September 30, 2024     September 30, 2023     June 30, 2024  
(Unaudited, millions)   Average
balance		     Interest
income/expense		     Average
interest
rate		     Average
balance		     Interest
income/expense		     Average
interest
rate		     Average
balance		     Interest
income/expense		     Average
interest
rate		  

Interest-earning assets:

 

          
Cash and federal funds sold   $ 2,733.0     $ 36.7       5.37 %    $  2,595.1     $ 35.6       5.48 %    $  2,833.7     $ 37.8       5.34 % 
Financial instruments owned     1,191.9       7.0       2.36 %      875.6       4.4       2.01 %      1,165.7       6.3       2.18 % 
Margin balances     675.7       13.7       8.12 %      768.2       15.6       8.15 %      694.3       14.0       8.04 % 

Investments:

                  

Asset-backed securities

     6,223.6       113.3       7.28 %      6,130.3       111.0       7.25 %      5,982.6       108.1       7.23 % 

Mortgage-backed securities

     1,047.0       7.6       2.89 %      957.3       5.3       2.22 %      929.8       5.6       2.41 % 

Corporate fixed income securities

     543.0       3.7       2.72 %      619.5       4.3       2.77 %      589.8       4.1       2.77 % 

Other

     4.7       —       2.55 %      4.8       0.1       2.55 %      4.8       —       2.55 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total investments

     7,818.3       124.6       6.37 %      7,711.9       120.7       6.26 %      7,507.0       117.8       6.28 % 

Loans:

                  

Residential real estate

     8,342.3       74.8       3.59 %      7,839.4       61.7       3.15 %      8,182.5       71.0       3.47 % 

Commercial and industrial

     3,785.0       81.9       8.65 %      4,372.4       96.8       8.86 %      3,643.7       79.9       8.77 % 

Fund banking

     3,506.1       71.2       8.12 %      4,155.7       83.0       7.99 %      3,299.5       67.0       8.13 % 

Securities-based loans

     2,258.9       40.8       7.23 %      2,342.4       42.7       7.30 %      2,292.4       41.6       7.26 % 

Commercial real estate

     603.4       11.3       7.48 %      668.0       13.4       8.00 %      637.6       11.5       7.20 % 

Construction and land

     1,164.4       24.8       8.51 %      820.5       17.3       8.44 %      1,181.5       24.9       8.42 % 

Loans held for sale

     493.4       10.5       8.51 %      202.2       2.6       5.06 %      462.7       11.2       9.68 % 

Other

     211.1       4.2       8.07 %      162.2       3.2       7.86 %      206.2       4.0       7.77 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total loans

     20,364.6       319.5       6.28 %      20,562.8       320.7       6.24 %      19,906.1       311.1       6.25 % 

Other interest-bearing assets

     830.3       9.3       4.49 %      730.9       8.2       4.49 %      860.4       11.1       5.16 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing assets/ interest income

     33,613.8       510.8       6.08 %      33,244.5       505.2       6.08 %      32,967.2       498.1       6.04 % 

Interest-bearing liabilities:

 

          

Senior notes

     779.3       8.2       4.20 %      1,115.2       12.5       4.49 %      1,116.0       12.5       4.48 % 

Deposits

     27,535.9       229.7       3.34 %      27,247.4       198.2       2.91 %      26,758.7       220.3       3.29 % 

Other interest-bearing liabilities

     1,340.6       13.3       3.96 %      1,218.9       9.8       3.23 %      1,461.1       14.5       3.98 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing liabilities/ interest expense

   $  29,655.8       251.2       3.39 %    $ 29,581.5       220.5       2.98 %    $ 29,335.8       247.3       3.37 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

Net interest income/margin

     $   259.6        3.09 %      $   284.7        3.43 %      $    250.8        3.04 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Third Quarter 2024 Earnings Release    Page 15 of 19

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Stifel Bancorp Net Interest Income

 

 

    Three Months Ended  
    September 30, 2024     September 30, 2023     June 30, 2024  
(Unaudited, millions)   Average
balance		     Interest
income/expense		     Average
interest
rate		     Average
balance		     Interest
income/expense		     Average
interest
rate		     Average
balance		     Interest
income/expense		     Average
interest
rate		  

Interest-earning assets:

 

            

Cash and federal funds sold

   $   1,705.6     $ 24.1         5.66 %    $   1,536.8     $ 21.9         5.70 %    $   1,765.4     $ 25.0         5.67 % 

Investments

     7,818.3       124.6       6.37 %      7,711.9       120.7       6.26 %      7,507.0       117.8       6.28 % 

Loans

     20,364.6       319.5       6.28 %      20,562.8       320.7       6.24 %      19,906.1       311.1       6.25 % 

Other interest-bearing assets

     66.3       0.9       5.51 %      64.9       0.7       4.08 %      66.7       1.0       5.71 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing assets/interest income

   $ 29,954.8     $ 469.1       6.26 %    $ 29,876.4     $ 464.0       6.21 %    $ 29,245.2     $ 454.9       6.22 % 

Interest-bearing liabilities:

 

            

Deposits

   $ 27,535.9     $ 229.7       3.34 %    $ 27,247.4     $ 198.2       2.91 %    $ 26,758.7     $ 220.3       3.29 % 

Other interest-bearing liabilities

     91.6       1.6       7.11 %      0.9       0.2       80.57 %      90.1       1.7       7.44 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest-bearing liabilities/interest expense

   $ 27,627.5       231.3       3.35 %    $ 27,248.3       198.4       2.91 %    $ 26,848.8       222.0       3.31 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

Net interest income/margin

     $ 237.8       3.17 %      $ 265.6       3.56 %      $ 232.9       3.19 % 
   

 

 

    

 

 

      

 

 

    

 

 

      

 

 

    

 

 

  

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Third Quarter 2024 Earnings Release    Page 16 of 19

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GAAP to Core Reconciliation

 

 

     Three Months Ended     Nine Months Ended  
(Unaudited, 000s)    9/30/2024     9/30/2023     Change     6/30/2024     Change     9/30/2024     9/30/2023     Change  

GAAP net revenues

    $   1,224,668     $   1,045,051       $   1,217,932       $   3,605,638     $   3,202,565    

Non-GAAP adjustments

      683       (23 )        9         692       (26 )   
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP net revenues

      1,225,351       1,045,028         1,217,941         3,606,330       3,202,539    
                

GAAP compensation and benefits expense

      718,065       613,287         722,719         2,120,479       1,880,144    

Merger-related (17)

      (6,101 )      (7,171 )        (5,764 )        (17,398 )      (22,947 )   

Restructuring and severance (18)

      (1,261 )      —         (9,961 )        (11,222 )      —    
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Total non-GAAP adjustments

      (7,362 )      (7,171 )        (15,725 )        (28,620 )      (22,947 )   
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    
Non-GAAP compensation and benefits expense      710,703       606,116         706,994         2,091,859       1,857,197    
                
GAAP non-compensation operating expenses      289,945       322,335         268,319         822,916       821,724    

Merger-related (17)

      (11,166 )      (6,623 )        (8,048 )        (25,835 )      (23,380 )   
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    
Non-GAAP non-compensation operating expenses      278,779       315,712         260,271         797,081       798,344    
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Total adjustments

      (19,211 )      (13,771 )        (23,782 )        (55,147 )      (46,301 )   
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    
                

GAAP provision for income taxes

      58,153       41,268         61,600         174,869       140,645    

Merger-related and other (19)

      2,126       5,198         3,185         8,374       13,455    
  

 

 

    

 

 

      

 

 

      

 

 

    

 

 

    

Non-GAAP provision for income taxes

      60,279       46,466         64,785         183,243       154,100    
                

Financial ratios:

                 

Compensation and benefits

      58.0 %      58.0 %      -        58.0 %      -        58.0 %      58.0 %      -   

Non-compensation operating expenses

      22.8 %      30.2 %      (740 )      21.4 %      140       22.1 %      24.9 %      (280 ) 

Income before income taxes

      19.2 %      11.8 %      740       20.6 %      (140 )      19.9 %      17.1 %      280  

Effective tax rate

      25.6 %      37.7 %      (1,210 )      25.8 %      (20 )      25.5 %      28.2 %      (270 ) 

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Third Quarter 2024 Earnings Release    Page 17 of 19

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Footnotes

 

 

  (1)      Please refer to the GAAP to Core Reconciliation for a reconciliation of the Company’s GAAP results to these non-GAAP measures.
  (2)      Book value per common share represents shareholders’ equity (excluding preferred stock) divided by period end common shares outstanding. Tangible book value per share represents tangible common shareholders’ equity (defined below) divided by period end common shares outstanding.
  (3)      Return on average common equity (“ROCE”) is calculated by dividing annualized net income applicable to common shareholders by average common shareholders’ equity or, in the case of non-GAAP ROCE, calculated by dividing non-GAAP net income applicable to commons shareholders by average common shareholders’ equity.
  (4)      Return on average tangible common equity (“ROTCE”) is calculated by dividing annualized net income applicable to common shareholders by average tangible common equity or, in the case of non-GAAP ROTCE, calculated by dividing non-GAAP net income applicable to common shareholders by average tangible common equity. Tangible common equity, also a non-GAAP financial measure, equals total common shareholders’ equity less goodwill and identifiable intangible assets and the deferred taxes on goodwill and intangible assets. Average deferred taxes on goodwill and intangible assets was $77.9 million, $67.4 million, and $75.8 million, as of September 30, 2024 and 2023, and June 30, 2024, respectively.
  (5)      Regulatory capital amounts and ratios are estimates as of the date of the Company’s earnings release, October 23, 2024.
  (6)      Includes capital raising and advisory fee revenues.
  (7)      Includes independent contractors of 114, 108, and 111 as of September 30, 2024 and 2023, and June 30, 2024, respectively.
  (8)      Includes client margin balances held by the Company’s broker-dealer subsidiaries and securities-based loans held at the Company’s bank subsidiaries.
  (9)      Includes Private Client Group and Trust Business.
  (10)      Includes fund networking fees, retirement fees, transaction/handling fees, and ACAT fees.
  (11)      Asset management assets managed in Private Client Group or Trust accounts.
  (12)      Return on assets (ROA) is calculated based on prior period-end balances for Private Client Group, period-end balances for Asset Management, and average daily balances for Individual Program Banks. Prior to Q4 2023, ROA for Individual Program Banks was calculated on average quarterly balances. Prior periods have not been restated to reflect the change as the differences are immaterial.
  (13)      Represents client assets in Treasury Securities with maturities of 52 weeks or less.
  (14)      During the first quarter of 2024, the Company began sweeping certain commercial treasury deposits to third-party banks. The balances at third-party banks can be brought back on balance sheet to support liquidity needs.
  (15)      Includes Smart Rate Deposits, Sweep Deposits, Third-party Bank Sweep Program, and Other Sweep Cash.
  (16)      Includes net interest, asset management, and other income.
  (17)      Primarily related to charges attributable to integration-related activities, signing bonuses, amortization of restricted stock awards, debentures, and promissory notes issued as retention, additional earn-out expense, and amortization of intangible assets acquired. These costs were directly related to acquisitions of certain businesses and are not representative of the costs of running the Company’s on-going business.
  (18)      The Company recorded severance costs associated with workforce reductions in certain of its foreign subsidiaries.
  (19)      Primarily represents the Company’s effective tax rate for the period applied to the non-GAAP adjustments.

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Third Quarter 2024 Earnings Release    Page 18 of 19

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Disclaimer and Legal Notice

 

 

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 prospects of Stifel Financial Corp., as well as Stifel, Nicolaus & Company, Incorporated and its subsidiaries (collectively, “SF” or the “Company”). These statements can be identified by the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” and similar expressions.

All statements not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. For information about the risks and important factors that could affect the Company’s future results, financial condition and liquidity, see “Risk Factors” in Part I of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Forward-looking statements speak only as to the date they are made. The Company disclaims any intent or obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Use of Non-GAAP Financial Measures

The Company prepares its Consolidated Financial Statements using accounting principles generally accepted in the United States (U.S. GAAP). The Company may disclose certain “non-GAAP financial measures” in the course of its earnings releases, earnings conference calls, financial presentations and otherwise. The Securities and Exchange Commission defines a “non-GAAP financial measure” as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments that effectively exclude, or include, amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. Non-GAAP financial measures disclosed by the Company are provided as additional information to analysts, investors and other stakeholders in order to provide them with greater transparency about, or an alternative method for assessing the Company’s financial condition or operating results. These measures are not in accordance with, or a substitute for U.S. GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever the Company refers to a non-GAAP financial measure, it will also define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the non-GAAP financial measure it references and such comparable U.S. GAAP financial measure.

Legal Notice

This Financial Supplement contains financial, statistical, and business-related information, as well as business and segment trends. The information should be read in conjunction with the Company’s third quarter earnings release issued October 23, 2024.

 

Stifel Financial Corp. Quarterly Financial Supplement  |  Third Quarter 2024 Earnings Release    Page 19 of 19