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Exhibit 99.1

 

LOGO

STIFEL REPORTS SECOND QUARTER 2013 FINANCIAL RESULTS

RECORD QUARTERLY REVENUES

Financial highlights for the three months ended June 30, 2013:

 

   

Record total revenues of $511.4 million, increased 33% compared with the year-ago quarter.

 

   

Investment banking revenues of $122.1 million, increased 81% compared with the year-ago quarter.

 

   

Non-GAAP net income of $44.4 million, or $0.60 per diluted share.

 

   

Net income of $29.4 million, or $0.40 per diluted share.

Financial highlights for the six months ended June 30, 2013:

 

   

Record total revenues of $964.7 million, increased 22% compared with the year-ago period.

 

   

Non-GAAP net income of $84.2 million, or $1.18 per diluted share.

 

   

Net income of $44.1 million, or $0.62 per diluted share.

ST. LOUIS, August 8, 2013 – Stifel Financial Corp. (NYSE: SF) today reported record total revenues of $511.4 million for the three months ended June 30, 2013. The Company reported non-GAAP net income of $44.4 million, or $0.60 per diluted share. On a GAAP basis, the Company reported net income of $29.4 million, or $0.40 per diluted share for the three months ended June 30, 2013, compared with net income of $26.1 million, or $0.42 per diluted share, on total revenues of $384.3 million for the second quarter of 2012. The Company reported non-GAAP net income of $39.9 million, or $0.58 per diluted share, on total revenues of $453.2 million for the three months ended March 31, 2013. A reconciliation of the Company’s GAAP results to these non-GAAP measures is discussed below under “Non-GAAP Financial Measures.”

For the six months ended June 30, 2013, the Company reported record total revenues of $964.7 million. The Company reported non-GAAP net income of $84.2 million, or $1.18 per diluted share. On a GAAP, basis, the Company reported net income of $44.1 million, or $0.62 per diluted share for the six months ended June 30, 2013, compared with net income of $60.9 million, or $0.97 per diluted share, on total revenues of $793.6 million for the six months ended June 30, 2012. A reconciliation of the Company’s GAAP results to these non-GAAP measures is discussed below under “Non-GAAP Financial Measures.”

“We are pleased to announce record revenues for the second quarter and for the first six months of 2013 in both the Global Wealth Management and the Institutional Group, especially against the challenging market conditions in the quarter. We are very encouraged with our investment banking results, which demonstrate the breadth of our capabilities. The merger with KBW continues to exceed our expectations, and we are gaining market share in the financial institutions space,” said Ronald J. Kruszewski, Chairman, President and CEO of Stifel.

Kruszewski continued, “This quarter, we look forward to the contributions from the institutional fixed income sales and trading professionals who joined us from Knight Capital Group.”

 

Summary Results of Operations (Unaudited)

 
     Three Months Ended      Six Months Ended  
(in 000s)    6/30/13      6/30/12      %
Change
    3/31/13      %
Change
     6/30/13      6/30/12      %
Change
 

Total revenues

   $ 511,421       $ 384,264         33.1      $ 453,240         12.8       $ 964,661       $ 793,607         21.6   

Net revenues

   $ 498,736       $ 374,407         33.2      $ 441,780         12.9       $ 940,516       $ 774,740         21.4   

Net income

   $ 29,435       $ 26,136         12.6      $ 14,619         101.3       $ 44,054       $ 60,909         (27.7

Non-GAAP net income1

   $ 44,356       $ 26,136         69.7      $ 39,876         11.2       $ 84,240       $ 60,909         38.3   

Earnings per share:

                      

Basic

   $ 0.46       $ 0.49         (6.1   $ 0.24         91.7       $ 0.71       $ 1.14         (37.7

Diluted

   $ 0.40       $ 0.42         (4.8   $ 0.21         90.5       $ 0.62       $ 0.97         (36.1

Non-GAAP diluted 1

   $ 0.60       $ 0.42         42.9      $ 0.58         3.4       $ 1.18       $ 0.97         21.6   

Weighted average number of common shares outstanding:

                      

Basic

     64,505         53,569         20.4        60,054         7.4         62,292         53,406         16.6   

Diluted

     74,090         62,678         18.2        69,189         7.1         71,627         62,700         14.2   

 

1  A reconciliation of the Company’s GAAP results to these non-GAAP measures is discussed under “Non-GAAP Financial Measures.”

 

1


Business Segment Results

 

Summary Segment Results (Unaudited)

 
     Three Months Ended            Six Months Ended  
(in 000s)    6/30/13     6/30/12     %
Change
     3/31/13     %
Change
     6/30/13     6/30/12     %
Change
 

Net revenues:

                  

Global Wealth Management

   $ 282,717      $ 239,300        18.1       $ 266,957        5.9       $ 549,674      $ 486,908        12.9   

Institutional Group

     220,476        136,026        62.1         176,437        25.0         396,913        285,270        39.1   

Other

     (4,457     (919     384.9         (1,614     176.3         (6,071     2,562        (337.0
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 
   $ 498,736      $ 374,407        33.2       $ 441,780        12.9       $ 940,516      $ 774,740        21.4   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Operating contribution:2

                  

Global Wealth Management

   $ 78,924      $ 61,036        29.3       $ 69,499        13.6       $ 148,423      $ 129,914        14.2   

Institutional Group

     30,059        17,863        68.3         28,137        6.8         58,196        41,867        39.0   

Other

     (35,057     (35,025     0.1         (33,944     3.3         (69,001     (68,653     0.5   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 
   $ 73,926      $ 43,874        68.5       $ 63,692        16.1       $ 137,618      $ 103,128        33.4   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Global Wealth Management

For the quarter ended June 30, 2013, the Global Wealth Management (“GWM”) segment generated pre-tax operating income of $78.9 million, compared with $61.0 million in the second quarter of 2012 and $69.5 million in the first quarter of 2013. Net revenues for the quarter were $282.7 million, compared with $239.3 million in the second quarter of 2012, and $267.0 million in the first quarter of 2013. The increase in net revenues both from the second quarter of 2012 and the first quarter of 2013 is primarily attributable to (1) an increase in commission revenues; (2) increase in investment banking revenues; (3) growth in asset management and service fees; and (4) increased net interest revenues.

 

   

The Private Client Group reported record net revenues of $257.3 million, a 17% increase compared with the second quarter of 2012 and a 6% increase compared with the first quarter of 2013.

 

   

Stifel Bank reported net revenues of $25.4 million, a 34% increase compared with the second quarter of 2012 and a 6% increase compared with the first quarter of 2013.

Institutional Group

For the quarter ended June 30, 2013, the Institutional Group segment generated pre-tax operating income of $30.1 million, compared with $17.9 million in the second quarter of 2012 and $28.1 million in the first quarter of 2013. Net revenues for the quarter were $220.5 million, compared with $136.0 million in the second quarter of 2012 and $176.4 million in the first quarter of 2013. The increase in net revenues from the second quarter of 2012 was primarily attributable to (1) an increase in advisory fees; (2) higher equity institutional brokerage revenues; (3) an increase in equity capital raising revenues; and (4) higher fixed income institutional brokerage revenues. The increase in net revenues from the first quarter of 2013 was primarily attributable to (1) an increase in advisory fees; (2) higher equity capital raising revenues; and (3) an increase in equity institutional brokerage revenues, offset by (1) lower fixed income institutional brokerage revenues; and (2) a decline in fixed income capital raising revenues. Net revenue growth, both year-over-year and sequentially, is attributable to the acquisitions of KBW and, to a lesser extent, Miller Buckfire.

 

2  A reconciliation of the Company’s GAAP results to these non-GAAP measures is discussed under “Non-GAAP Financial Measures.”

 

2


Institutional brokerage revenues were $107.7 million, a 43% increase compared with the second quarter of 2012 and an 11% increase compared with the first quarter of 2013.

 

   

Equity brokerage revenues were $66.8 million, a 74% increase compared with the second quarter of 2012 and a 28% increase compared with the first quarter of 2013.

 

   

Fixed income brokerage revenues were $40.9 million, an 11% increase compared with the second quarter of 2012 and a 10% decrease compared with the first quarter of 2013.

Investment banking revenues were $106.8 million, an 81% increase compared with the second quarter of 2012 and a 59% increase compared with the first quarter of 2013.

 

   

Equity capital raising revenues were $44.6 million, a 153% increase compared with the second quarter of 2012 and an 83% increase compared with the first quarter of 2013.

 

   

Fixed income capital raising revenues were $14.2 million, a 4% decrease compared with the second quarter of 2012 and a 10% decrease compared with the first quarter of 2013.

 

   

Advisory fee revenues were $48.0 million, an 80% increase compared with the second quarter of 2012 and a 77% increase compared with the first quarter of 2013.

Consolidated Compensation and Benefits Expenses

For the quarter ended June 30, 2013, compensation and benefits expenses were $321.3 million, which included merger-related expenses of $6.0 million, compared with $239.4 million in the second quarter of 2012 and $315.7 million in the first quarter of 2013.

Excluding merger-related expenses, compensation and benefits as a percentage of net revenues was 63.0% in the second quarter of 2013, compared with 63.9% in the second quarter of 2012 and 63.8% in the first quarter of 2013. Transition pay, which primarily consists of amortization of upfront notes, signing bonuses and retention awards, as a percentage of net revenues was 4.2% in the second quarter of 2013, compared with 5.0% in the second quarter of 2012 and 4.7% in the first quarter of 2013.

Consolidated Non-Compensation Operating Expenses

For the quarter ended June 30, 2013, non-compensation operating expenses were $126.2 million, which included $15.0 million of merger-related expenses, compared with $91.2 million in the second quarter of 2012 and $102.7 million in the first quarter of 2013.

Excluding merger-related expenses, non-compensation operating expenses as a percentage of net revenues for the quarter ended June 30, 2013 was 22.2%, compared with 24.4% in the second quarter of 2012 and 21.8% in the first quarter of 2013.

Provision for Income Taxes

The effective income tax rate for the quarter ended June 30, 2013 was 43% compared with 40% in the second quarter of 2012 and 37% in the first quarter of 2013. The higher tax rate in the second quarter of 2013 was attributable to the impact of the results of our foreign subsidiaries to the income tax provision.

 

3


Statement of Financial Condition (Unaudited)

Total assets increased 38% to $8.5 billion as of June 30, 2013 from $6.1 billion as of June 30, 2012. The increase is primarily attributable to growth of Stifel Bank, the Company’s bank subsidiary, which as of June 30, 2013 has grown its assets to $4.3 billion from $3.1 billion as of June 30, 2012. As of June 30, 2013, Stifel Bank’s investment portfolio of $3.0 billion increased 60% from June 30, 2012, with more than 99% of the investment portfolio comprised of investment grade securities, of which more than 70% were Government-Sponsored Enterprise guaranteed MBS or AAA-rated investments. The increase in total assets from June 30, 2012 is also attributable to the acquisition of KBW that was completed in the first quarter of 2013. In addition to the net assets acquired, the Company recognized goodwill of $310.7 million, which is based on preliminary estimates and is subject to change upon the completion of the valuation. The Company’s broker-dealer subsidiaries gross assets and liabilities, including trading inventory, stock loan/borrow, receivables and payables from/to brokers, dealers and clearing organizations and clients, fluctuate with business levels and overall market conditions.

Total stockholders’ equity as of June 30, 2013 increased $526.1 million, or 38%, to $1.9 billion from $1.4 billion as of June 30, 2012. The increase is primarily attributable to the Company’s acquisition of KBW.

 

4


Non-GAAP Financial Measures

The Company utilized non-GAAP calculations of presented net revenues, compensation and benefits, non-compensation operating expenses, income before income taxes, provision for income taxes, net income, compensation and non-compensation operating expense ratios, pre-tax margin and diluted earnings per share as additional measures to aid in understanding and analyzing the Company’s financial results for the three and six months ended June 30, 2013. Specifically, the Company believes that the non-GAAP measures provide useful information by excluding certain items that may not be indicative of the Company’s core operating results and business outlook. The Company believes that these non-GAAP measures will allow for a better evaluation of the operating performance of the business and facilitate a meaningful comparison of the Company’s results in the current period to those in prior periods and future periods. Reference to these non-GAAP measures should not be considered as a substitute for results that are presented in a manner consistent with GAAP. These non-GAAP measures are provided to enhance investors’ overall understanding of the Company’s current financial performance. These non-GAAP amounts exclude compensation expense related to the granting of stock awards with no continuing service requirement issued as retention as part of the acquisition of KBW and certain compensation and non-compensation operating expenses associated with the acquisitions of KBW, Miller Buckfire and the Knight Capital Fixed Income business.

A limitation of utilizing these non-GAAP measures of net revenues, compensation and benefits, non-compensation operating expenses, income before income taxes, provision for income taxes, net income, compensation and non-compensation operating expenses ratios, pre-tax margin and diluted earnings per share is that the GAAP accounting effects of these merger-related charges do in fact reflect the underlying financial results of the Company’s business and these effects should not be ignored in evaluating and analyzing its financial results. Therefore, the Company believes that GAAP measures of net revenues, compensation and benefits, non-compensation operating expenses, income before income taxes, provision for income taxes, net income, compensation and non-compensation operating expense ratios, pre-tax margin and diluted earnings per share and the same respective non-GAAP measures of the Company’s financial performance should be considered together.

The following table provides details with respect to reconciling net revenues, compensation and benefits, non-compensation operating expenses, income before income taxes, provision for income taxes, net income, compensation and non-compensation operating expense ratios, pre-tax margin and diluted earnings per share on a GAAP basis for the three and six months ended June 30, 2013 to the aforementioned expenses on a non-GAAP basis for the same period.

 

Reconciliation of GAAP to Non-GAAP Earnings (Unaudited)  
     Three Months Ended June 30, 2013      Six Months Ended June 30, 2013  
(in 000s, except per share amounts)    GAAP      Merger-
related
    Non-GAAP      GAAP      Merger-
related
    Non-GAAP  

Net revenues

   $ 498,736       $ 1,736      $ 500,472       $ 940,516       $ 1,744      $ 942,260   

Non-interest expenses:

               

Compensation and benefits

     321,331         (6,018     315,313         637,058         (39,804     597,254   

Non-compensation operating expenses

     126,207         (14,974     111,233         228,914         (21,526     207,388   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total non-interest expenses

     447,538         (20,992     426,546         865,972         (61,330     804,642   

Income before income taxes

     51,198         22,728        73,926         74,544         63,074        137,618   

Provision for income taxes

     21,763         7,807        29,570         30,490         22,888        53,378   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Net income

   $ 29,435       $ 14,921      $ 44,356       $ 44,054       $ 40,186      $ 84,240   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Earnings per share::

               

Basic

   $ 0.46       $ 0.23      $ 0.69       $ 0.71       $ 0.64      $ 1.35   

Diluted

   $ 0.40       $ 0.20      $ 0.60       $ 0.62       $ 0.56      $ 1.18   

As a percentage of net revenues:

               

Compensation and benefits

     64.4           63.0         67.7           63.4   

Non-compensation operating expenses

     25.3           22.2         24.4           22.0   

Income before income taxes

     10.3           14.8         7.9           14.6   

 

5


Conference Call Information

Stifel Financial Corp. will host its second quarter 2013 financial results conference call on Thursday, August 8, 2013, at 5:00 p.m. Eastern time. The conference call may include forward-looking statements.

All interested parties are invited to listen to Stifel’s Chairman, President, and CEO, Ronald J. Kruszewski, by dialing (877) 876-9938 and referencing conference ID #24850913. A live audio webcast of the call, as well as a presentation highlighting the Company’s results, will be available through the Company’s web site, www.stifel.com. For those who cannot listen to the live broadcast, a replay of the broadcast will be available through the above-referenced web site beginning approximately one hour following the completion of the call.

Company Information

Stifel Financial Corp. (NYSE: SF) is a financial services holding company headquartered in St. Louis, Missouri that conducts its banking, securities, and financial services business through several wholly owned subsidiaries. Stifel clients are served through Stifel, Nicolaus & Company, Incorporated in the U.S., through Stifel Nicolaus Canada Inc. in Canada, through Stifel Nicolaus Europe Limited in the United Kingdom and Europe, and through Keefe, Bruyette & Woods, Inc. in the U.S. and Europe. The Company’s broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Bank & Trust offers a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. offers trust and related services. To learn more about Stifel, please visit the Company’s web site at www.stifel.com.

Forward-Looking Statements

This earnings release contains certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this earnings release not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements in this earnings release are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among other things, the following possibilities: the ability to successfully integrate acquired companies or the branch offices and financial advisors; a material adverse change in financial condition; the risk of borrower, depositor, and other customer attrition; a change in general business and economic conditions; changes in the interest rate environment, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in legislation and regulation; other economic, competitive, governmental, regulatory, geopolitical, and technological factors affecting the companies’ operations, pricing, and services; and other risk factors referred to from time to time in filings made by Stifel Financial Corp. with the Securities and Exchange Commission. Forward-looking statements speak only as to the date they are made. Stifel Financial Corp. 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.

 

6


Summary Results of Operations (Unaudited)  
     Three Months Ended     Six Months Ended  

(in thousands, except per share amounts)

   6/30/13      6/30/12      %
Change
    3/31/13      %
Change
    6/30/13      6/30/12      %
Change
 

Revenues:

                     

Commissions

   $ 157,168       $ 127,427         23.3      $ 148,648         5.7      $ 305,816       $ 250,730         22.0   

Principal transactions

     111,448         91,564         21.7        107,244         3.9        218,692         207,797         5.2   

Investment banking

     122,114         67,363         81.3        78,379         55.8        200,493         137,801         45.5   

Asset management and service fees

     76,088         65,311         16.5        68,912         10.4        145,000         126,129         15.0   

Other income

     11,670         5,418         115.4        20,212         (42.3     31,882         18,712         70.4   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Operating revenues

     478,488         357,083         34.0        423,395         13.0        901,883         741,169         21.7   

Interest revenue

     32,933         27,181         21.2        29,845         10.3        62,778         52,438         19.7   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total revenues

     511,421         384,264         33.1        453,240         12.8        964,661         793,607         21.6   

Interest expense

     12,685         9,857         28.7        11,460         10.7        24,145         18,867         28.0   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Net revenues

     498,736         374,407         33.2        441,780         12.9        940,516         774,740         21.4   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Non-interest expenses:

                     

Compensation and benefits

     321,331         239,374         34.2        315,727         1.8        637,058         494,078         28.9   

Occupancy and equipment rental

     41,821         32,320         29.4        34,048         22.8        75,869         63,111         20.2   

Communications and office supplies

     25,936         20,797         24.7        22,979         12.9        48,915         41,170         18.8   

Commission and floor brokerage

     10,031         7,747         29.5        9,058         10.8        19,089         15,359         24.3   

Other operating expenses

     48,419         30,295         59.8        36,622         32.2        85,041         57,894         46.9   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total non-interest expenses

     447,538         330,533         35.4        418,434         7.0        865,972         671,612         28.9   

Income before income taxes

     51,198         43,874         16.7        23,346         119.3        74,544         103,128         (27.7

Provision for income taxes

     21,763         17,738         22.7        8,727         149.4        30,490         42,219         (27.8
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Net income

   $ 29,435       $ 26,136         12.6      $ 14,619         101.3      $ 44,054       $ 60,909         (27.7
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Earnings per share:

                     

Basic

   $ 0.46       $ 0.49         (6.1   $ 0.24         91.7      $ 0.71       $ 1.14         (37.7

Diluted

   $ 0.40       $ 0.42         (4.8   $ 0.21         90.5      $ 0.62       $ 0.97         (36.1

Weighted average number of common shares outstanding:

                     

Basic

     64,505         53,569         20.4        60,054         7.4        62,292         53,406         16.6   

Diluted

     74,090         62,678         18.2        69,189         7.1        71,627         62,700         14.2   

 

(in thousands, except per share, employee and location amounts)  
     6/30/13      6/30/12      % Change      3/31/13      % Change  

Statistical Information:

              

Book value per share

   $ 30.05       $ 25.63         17.2       $ 30.13         (0.3

Financial advisors3

     2,069         2,028         2.0         2,063         0.3   

Full-time associates

     5,759         5,196         10.8         5,680         1.4   

Locations

     357         332         7.5         357         —     

Total client assets

   $ 150,628,000       $ 131,026,000         15.0       $ 147,119,000         2.4   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

3  Includes 145, 156 and 148 independent contractors at June 30, 2013 and 2012 and March 31, 2013, respectively.

 

7


Global Wealth Management Summary Results of Operations (Unaudited)  
     Three Months Ended     Six Months Ended  
(in 000s)    6/30/13      6/30/12      %
Change
     3/31/13      %
Change
    6/30/13      6/30/12      %
Change
 

Revenues:

                      

Commissions

   $ 104,576       $ 88,417         18.3       $ 102,086         2.4      $ 206,662       $ 179,437         15.2   

Principal transactions

     56,313         55,058         2.3         56,307                112,620         113,439         (0.7

Asset management and service fees

     75,976         65,169         16.6         68,934         10.2        144,910         125,755         15.2   

Net interest

     24,505         18,227         34.5         21,486         14.1        45,991         35,869         28.2   

Investment banking

     15,334         8,384         82.9         11,103         38.1        26,437         20,786         27.2   

Other income

     6,013         4,045         48.6         7,041         (14.6     13,054         11,622         12.3   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Net revenues

     282,717         239,300         18.1         266,957         5.9        549,674         486,908         12.9   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Non-interest expenses:

                      

Compensation and benefits

     163,156         140,629         16.0         157,596         3.5        320,752         283,980         12.9   

Non-compensation operating expenses

     40,637         37,635         8.0         39,862         1.9        80,499         73,014         10.3   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total non-interest expenses

     203,793         178,264         14.3         197,458         3.2        401,251         356,994         12.4   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Income before income taxes

   $ 78,924       $ 61,036         29.3       $ 69,499         13.6      $ 148,423       $ 129,914         14.2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

As a percentage of net revenues:

                      

Compensation and benefits

     57.7         58.8            59.0           58.4         58.3      

Non-compensation operating expenses

     14.4         15.7            15.0           14.6         15.0      

Income before income taxes

     27.9         25.5            26.0           27.0         26.7      

 

Stifel Bank & Trust (Unaudited)

Key Statistical Information

 
(in 000s, except percentages)    6/30/13     6/30/12     %
Change
     3/31/13     %
Change
 

Other information:

           

Assets

   $ 4,306,447      $ 3,052,867        41.1       $ 3,872,677        11.2   

Investment securities

     2,956,073        1,844,875        60.2         2,440,146        21.1   

Retained loans, net

     983,788        709,079        38.7         886,597        11.0   

Loans held for sale

     152,246        117,166        29.9         165,698        (8.1

Deposits

     4,007,050        2,776,684        44.3         3,556,568        12.7   

Allowance as a percentage of loans

     1.10     0.88        1.01  

Non-performing assets as a percentage of total assets

     0.03     0.08        0.04  

 

8


Institutional Group Summary Results of Operations (Unaudited)  
     Three Months Ended     Six Months Ended  
(in 000s)    6/30/13      6/30/12      %
Change
     3/31/13      %
Change
    6/30/13      6/30/12      %
Change
 

Revenues:

                      

Commissions

   $ 52,592       $ 39,010         34.8       $ 46,562         13.0      $ 99,154       $ 71,293         39.1   

Principal transactions

     55,135         36,506         51.0         50,938         8.2        106,073         94,358         12.4   

Capital raising

     58,813         32,349         81.8         40,095         46.7        98,908         74,780         32.3   

Advisory fees

     47,967         26,630         80.1         27,180         76.5        75,147         42,235         77.9   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Investment banking

     106,780         58,979         81.0         67,275         58.7        174,055         117,015         48.7   

Other4

     5,969         1,531         289.7         11,662         (48.8     17,631         2,604         577.0   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Net revenues

     220,476         136,026         62.1         176,437         25.0        396,913         285,270         39.1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Non-interest expenses:

                      

Compensation and benefits

     136,481         85,109         60.4         107,636         26.8        244,117         179,539         36.0   

Non-compensation operating expenses

     53,936         33,054         63.2         40,664         32.6        94,600         63,864         48.1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total non-interest expenses

     190,417         118,163         61.1         148,300         28.4        338,717         243,403         39.2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Income before income taxes

   $ 30,059       $ 17,863         68.3       $ 28,137         6.8      $ 58,196       $ 41,867         39.0   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

As a percentage of net revenues:

                      

Compensation and benefits

     61.9         62.6            61.0           61.5         62.9      

Non-compensation operating expenses

     24.5         24.3            23.1           23.8         22.4      

Income before income taxes

     13.6         13.1            15.9           14.7         14.7      

 

Institutional Group Brokerage & Investment Banking Revenues (Unaudited)  
     Three Months Ended     Six Months Ended  
(in 000s)    6/30/13      6/30/12      %
Change
    3/31/13      %
Change
    6/30/13      6/30/12      %
Change
 

Institutional brokerage:

                     

Equity

   $ 66,788       $ 38,466         73.6      $ 52,000         28.4      $ 118,788       $ 82,638         43.7   

Fixed income

     40,939         37,050         10.5        45,500         (9.9     86,439         83,013         4.1   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Institutional brokerage

     107,727         75,516         42.7        97,500         10.5        205,227         165,651         23.9   

Investment banking:

                     

Capital raising:

                     

Equity

     44,640         17,651         152.9        24,380         83.1        69,020         49,201         40.3   

Fixed income

     14,173         14,698         (3.6     15,715         (9.8     29,888         25,579         16.8   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Capital raising

     58,813         32,349         81.8        40,095         46.7        98,908         74,780         32.3   

Advisory fees:

     47,967         26,630         80.1        27,180         76.5        75,147         42,235         77.9   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Investment banking

   $ 106,780       $ 58,979         81.0      $ 67,275         58.7      $ 174,055       $ 117,015         48.7   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Investor Relations

Sarah Anderson

(415) 364-2500, investorrelations@stifel.com

 

4  Includes net interest and other income.

 

9