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STIFEL FINANCIAL 1st Quarter 2007 Fiscal Year Earnings Conference Call May 15, 2007 |
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Forward looking statement This presentation may contain "forward-looking statements" that involve risks and uncertainties, including statements relating to the market opportunity and future business prospects of Stifel Financial Corp. and Stifel Nicolaus ("SF" or the "Company"). Actual results may differ materially and reported results should not be considered as an indication of future performance. Factors that could cause actual results to differ are included in the Company's Annual and Quarterly Reports and from time to time in other reports filed by the Company with the Securities and Exchange Commission. To supplement our financial statements presented in accordance with GAAP, the management uses certain non-GAPP measures of financial performance and liquidity. These non-GAAP measures are in addition to results prepared by the Company in accordance with GAAP, and should only be considered together with the Company's GAAP results. Certain statements in the following presentation relate to future results that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. |
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1st Quarter Update 2007 |
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1st Quarter Highlights Record quarterly revenue of $162.5 million, a 43% increase over the prior year first quarter. Our Private Client Group ("PCG"), and Equity Capital Markets ("ECM"), achieved record revenue and profits for the three-months ended March 31, 2007. Commission and principal transactions increased 26% over the previous year first quarter. Investment banking revenue increased 174% to $43.1 million over the prior year first quarter. Asset management and service fees increased 44% to $19.4 million over the prior year first quarter. |
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1st Quarter Highlights For the three months ended March 31, 2007, utilizing Core earnings, pretax margin was 14% and annualized return on average equity totaled 21%. We closed on the acquisition of Ryan Beck & Company from BankAtlantic Bancorp Inc. on February 28, 2007 adding 400 financial advisors in 38 offices, significantly increasing our presence in the Mid-Atlantic region which brings our number of PCG financial advisors we employ including independent contractors to 1,143. We received approval from the Federal Reserve Board to become a bank holding company and financial holding company in connection with our acquisition of First Service Financial Company and its bank subsidiary First Service Bank which we closed on April 2, 2007. First Service Bank converted its charter from a Missouri bank to a Missouri trust company and changed its name to Stifel Bank and Trust. We completed our private placement of $35 million of 6.79% Cumulative Trust Preferred Securities. |
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Stifel Financial Core Total Revenues |
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Ryan Beck Update |
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1st Quarter GAAP to Core Earnings |
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Stifel Financial Core Net Revenues by Quarter |
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Stifel Financial Core Net Income by Quarter |
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Stifel Financial Core Diluted EPS by Quarter |
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Segment Update |
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1st Quarter Core Segment Comparison |
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Private Client Group Quarterly Income Statements |
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Equity Capital Markets Quarterly Income Statements |
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Investment Banking Capital Raising Advisory Fees |
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Investment Banking Capital Raising |
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Fixed Income Capital Markets Quarterly Income Statements |
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Other Financial Data Total Assets (000's) Stockholders Equity (000's) Book value Per Share Financial Advisors Full Time Employees Locations Total Client Assets (000's) |
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Non Core Expense Analysis |
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Quarterly Income Statement Impact Acquisiton Related Expenses LM Capital Markets Acquisition Ryan Beck Acquisition Total non-interest expenses Diluted EPS Impact |
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Annual Income Statement Impact LM Capital Markets Acquisition Ryan Beck Acquisition Total non-interest expenses Diluted EPS Impact |
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Balance Sheet |
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Stifel Financial Total Assets |
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Stifel Financial Total Shareholder's Equity |
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Equity Roll Forward ($ in thousands) Beginning Equity 12/31/06 $220,265 Earnings 8,829 Subtotal 229,094 Unit Amortization/Options/ESOP 12,125 Ryan Beck 102,529 Treasury Buy Back (1,107) Ending Equity 3/31/07 $342,641 |
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Stifel Financial Book Value Per Share |
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Questions and Answers |