Exhibit 99.1
FOR IMMEDIATE RELEASE
Stifel Financial Corp. Reports Third Quarter 2010 Results
• Record net revenues of $340.4 million. |
• Non-GAAP net income of $29.6 million, or $0.72 per diluted share. |
• GAAP net loss of $84.3 million. |
• As of September 30, 2010, stockholders' equity was $1.2 billion, resulting in book value of $33.97. |
ST. LOUIS - November 9, 2010 - Stifel Financial Corp. (NYSE: SF) today announced record net revenues of $340.4 million for the three months ended September 30, 2010. The Company reported non-GAAP net income of $29.6 million, or $0.72 per diluted share. On a GAAP basis, the Company reported an unaudited net loss of $84.3 million, or $2.47 per basic share (1) ($2.05 per diluted share, which is a non-GAAP measure) for the three months ended September 30, 2010, compared to net income of $22.1 million, or $0.67 per diluted share, on net revenues of $289.7 million for the third quarter of 2009. A reconciliation of the company's GAAP results to these non-GAAP measures is discussed below under "Non-GAAP Financial Measures."
Two items significantly impacted GAAP results for the third quarter of 2010:
A non-cash charge of $107.2 million after tax ($181.1 million pre-tax), or $3.14 per basic share ($2.60 per diluted share outstanding, which is a non-GAAP measure), related to the acceleration of deferred compensation as a result of the previously announced modification of the company's deferred compensation plan.
Merger-related expenses of $6.8 million after tax ($11.5 million pre-tax), or $0.20 per basic share ($0.17 per diluted share outstanding, which is a non-GAAP measure), related to the previously announced merger with Thomas Weisel Partners Group, Inc. ("TWPG").
For the nine months ending September 30, 2010, the company reported record net revenues of $980.4 million. The company reported non-GAAP net income of $77.4 million, or $2.09 per diluted share, compared to net income of $51.1 million, or $1.62 per diluted share, on net revenues of $771.2 million for the comparable period in 2009. The company reported a GAAP net loss of $39.5 million, or $1.24 per basic share (1) ($1.07 per diluted share, which is a non-GAAP measure) for the nine months ended September 30, 2010, which includes expenses associated with the previously announced modification of the company's deferred compensation plan and merger-related expenses of $116.9 million after tax. A reconciliation of the company's GAAP results to these non-GAAP measures is discussed below under "Non-GAAP Financial Measures."
Ronald J. Kruszewski, Chairman, President and Chief Executive Officer commented, "Our record net revenues and operating results demonstrate the diversity of our platform and our ability to navigate through changing economic conditions. We have made significant investments in our associates and infrastructure, the latest being the completion of the merger with Thomas Weisel Partners. As we build out our investment bank, we believe we are well positioned to take advantage of future opportunities."
Summary Results of Operations (Unaudited) | |||||||||||||||||||||||
| Three Months Ended |
| Nine Months Ended | ||||||||||||||||||||
| 9/30/10 |
| 9/30/09 |
| Change |
| 6/30/10 |
| Change |
| 9/30/10 |
| 9/30/09 |
| Change | ||||||||
Results of operations data (000s): |
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Net revenues | $ | 340,388 |
| $ | 289,683 |
| 17.5 | % |
| $ | 328,009 |
| 3.8 | % |
| $ | 980,427 |
| $ | 771,169 |
| 27.1 | % |
Net income/(loss) | $ | (84,336 | ) | $ | 22,138 |
| * | % |
| $ | 21,109 |
| * | % |
| $ | (39,487 | ) | $ | 51,130 |
| * | % |
Non-GAAP net income (2) | $ | 29,639 |
| $ | 22,138 |
| 33.9 | % |
| $ | 24,060 |
| 23.2 | % |
| $ | 77,442 |
| $ | 51,130 |
| 51.5 | % |
Earnings per share: (1) |
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Basic | $ | (2.47 | ) | $ | 0.77 |
| * | % |
| $ | 0.68 |
| * | % |
| $ | (1.24 | ) | $ | 1.85 |
| * | % |
Diluted | $ | (2.47 | ) | $ | 0.67 |
| * | % |
| $ | 0.60 |
| * | % |
| $ | (1.24 | ) | $ | 1.62 |
| * | % |
Non-GAAP diluted (2) | $ | 0.72 |
| $ | 0.67 |
| 7.5 | % |
| $ | 0.69 |
| 4.4 | % |
| $ | 2.09 |
| $ | 1.62 |
| 29.1 | % |
* Percentage is not meaningful. |
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(1) GAAP earnings per share for the three and nine months ended September 30, 2010 is calculated using the basic weighted average number of common shares outstanding, not fully dilutive shares, as they are anti-dilutive in periods a loss is incurred. Net loss for the three and nine months ended September 30, 2010, using fully dilutive shares of 41.2 million and 37.1 million, was $2.05 and $1.07, respectively.
(2) A reconciliation of the company's GAAP results to these non-GAAP measures is discussed below under "Non-GAAP Financial Measures."
Consolidated Non-Interest Expenses
For the quarter ended September 30, 2010, compensation and benefits expenses were $395.9 million, which included $183.2 million related to the modification of the company's deferred compensation plan and merger-related expenses, an increase of 105% compared to the third quarter of 2009, and an increase of 83% compared to the second quarter of 2010. Excluding these expenses, compensation and benefits expenses were $212.7 million for the third quarter of 2010, an increase of 10% compared to the third quarter of 2009, and a 2% decrease compared to the second quarter of 2010.
Excluding these expenses, compensation and benefits, as a percentage of net revenues, was 62% compared to 67% in the third quarter of 2009 and 66% in the second quarter of 2010.
For the quarter ended September 30, 2010, non-compensation operating expenses of $87.0 million, which included $8.5 million of merger-related expenses, a 32% increase compared to the third quarter of 2009 and a 16% increase compared to the second quarter of 2010. Excluding merger-related expenses, non-compensation operating expenses were $78.5 million for the third quarter of 2010, a 20% increase compared to the third quarter of 2009, and a 5% increase compared to the second quarter of 2010. The increase in non-compensation operating expenses is primarily due to the recently completed merger with TWPG and the acquisition of certain UBS branches completed in October 2009.
Business Segment Results
Global Wealth Management
For the quarter ended September 30, 2010, the Global Wealth Management ("GWM") segment generated pre-tax operating income of $51.7 million, compared to $29.1 million in the third quarter of 2009, and $40.4 million in the second quarter of 2010. Net revenues for the quarter were $207.5 million, compared to $158.7 million in the third quarter of 2009 and $199.9 million in the second quarter of 2010. GWM experienced revenue growth across all revenue line items, which is primarily attributable to an increase in the number of financial advisors and client assets resulting from the purchase of 56 UBS branches completed in October 2009.
The Private Client Group reported net revenues of $197.3 million, a 28% increase compared to the third quarter of 2009 and a 3% increase compared to the second quarter of 2010.
Stifel Bank reported net revenues of $10.2 million, a 107% increase compared to the third quarter of 2009 and a 13% increase compared to the second quarter of 2010.
Compensation and benefits expenses for the quarter were $119.1 million, an increase of 23% compared to the third quarter in 2009, resulting from increased revenue production. Compensation and benefits expenses decreased 4% compared to the second quarter of 2010. For the third quarter of 2010, compensation and benefits expense as a percentage of net revenues was 57% compared to 61% in the third quarter of 2009 and 62% in the second quarter of 2010.
Non-compensation operating expenses for the quarter were $36.7 million, a 12% increase compared to the third quarter of 2009, and a 2% increase compared to the second quarter of 2010, primarily due to the acquisition of certain UBS branches completed in October 2009.
Institutional Group
For the quarter ended September 30, 2010, the Institutional Group segment generated pre-tax operating income of $27.7 million, compared to $33.4 million in the third quarter of 2009, and $30.8 million in the second quarter of 2010. Net revenues for the quarter were $138.0 million, compared to $130.2 million in the third quarter of 2009 and $124.6 million in the second quarter of 2010. The growth in revenue over the comparable periods was driven by an increase in advisory services activity, which was primarily related to the merger of TWPG. The increase in activity was offset by a decline in fixed income institutional brokerage revenues, which was negatively impacted by the challenging market conditions present during the third quarter of 2010.
Institutional brokerage revenues were $87.5 million, an 11% decrease compared to the third quarter of 2009, and a 1% decrease compared to the second quarter of 2010.
Equity institutional brokerage revenues were $43.7 million, a 10% increase compared to the third quarter of 2009, and a 1% decrease compared to the second quarter of 2010. Fixed income institutional brokerage revenues were $43.8 million, a 25% decrease compared to the third quarter of 2009, and a 1% decrease compared to the second quarter of 2010.
Investment banking revenues were $45.6 million, a 48% increase compared to the third quarter of 2009, and a 28% increase compared to the second quarter of 2010.
Equity capital raising revenues were $18.1 million, a 37% increase compared to the third quarter of 2009, and a 13% decrease compared to the second quarter of 2010. Fixed income capital raising revenues were $4.5 million, an 8% decrease compared to the third quarter of 2009, and a 2% increase compared to the second quarter of 2010.
Equity advisory fee revenues were $20.3 million, a 78% increase compared to the third quarter of 2009, and a 120% increase compared to the second quarter of 2010. Fixed income advisory fee revenues were $2.8 million, a 106% increase compared to the third quarter of 2009, and a 110% increase compared to the second quarter of 2010.
Compensation and benefits expenses for the quarter were $82.1 million, a 6% increase compared to the third quarter in 2009 and a 13% increase compared to the second quarter of 2010. For the third quarter of 2010, compensation and benefits expense as a percentage of net revenues was 60% compared to 60% in the third quarter of 2009 and 58% in the second quarter of 2010. The increase in compensation and benefits expenses over the comparable periods is primarily related to associates who joined in connection with the TWPG merger.
Non-compensation operating expenses for the quarter were $28.2 million, a 47% increase compared to the third quarter in 2009, and a 33% increase compared to the second quarter of 2010. The increase in other non-compensation expenses over the comparable periods is primarily attributable to increased activity in all expense categories related to the merger with TWPG.
Statement of Financial Condition (Unaudited)
Total assets increased 43% to $4.1 billion as of September 30, 2010 from $2.9 billion as of September 30, 2009. The increase is primarily attributable to growth of the company's bank subsidiary, which has grown its balance sheet to $1.5 billion as of September 30, 2010 from $1.0 billion as of September 30, 2009, with high-quality, low-risk investments. As of September 30, 2010, Stifel Bank's investment portfolio of $830.1 million, which contains over 75% of agency mortgage back securities, is up 176.1% from September 30, 2009. The increase is also attributable to the recently completed merger with TWPG. In addition to the net assets acquired in the merger with TWPG, the company recognized goodwill and intangible assets of $95.6 million, which is based on preliminary estimates and is subject to change upon the final valuation. The company's broker-dealer subsidiary's 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 September 30, 2010 increased $325.8 million, or 39%, to $1.2 billion from $833.6 million as of September 30, 2009. The increase is primarily attributable to the cumulative impact of the previously announced modification of the deferred compensation plan of $73.9 million after-tax and the issuance of stock upon the completion of the merger with TWPG, offset by net losses and the repurchase of, $67.3 million, or 1.5 million shares, of the company's common stock pursuant to existing Board repurchase authorizations during the third quarter of 2010.
As of September 30, 2010, the company reported total securities owned and investments at fair value of $1.7 billion, which included securities categorized as level 3 of $137.1 million. The company's level 3 assets include auction rate securities, for which the auctions have failed, with a fair value of $85.5 million as of September 30, 2010.
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 an additional measure to aid in understanding and analyzing the company's financial results for the three and nine months ended September 30, 2010. 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 for the acceleration of deferred compensation as a result of the modification of the company's deferred compensation plan and certain non-compensation operating expenses associated with the merger of TWPG.
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 nine months ended September 30, 2010 to the aforementioned expenses on a non-GAAP basis for the same period.
Reconciliation of GAAP to Non-GAAP Earnings (Unaudited) | |||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||
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| Three Months Ended September 30, 2010 |
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| Nine Months Ended September 30, 2010 |
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| Merger-related |
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| Merger-related |
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Net revenues | $ | 340,388 |
| $ | 939 |
| $ | 341,327 |
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| $ | 980,427 |
| $ | 939 |
| $ | 981,366 |
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Non-interest expenses: |
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Compensation and benefits |
| 395,936 |
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| (183,176 | ) |
| 212,760 |
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| 819,085 |
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| (186,295 | ) |
| 632,790 |
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Non-compensation operating expenses |
| 87,008 |
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| (8,495 | ) |
| 78,513 |
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| 228,388 |
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| (10,404 | ) |
| 217,984 |
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Total non-interest expenses |
| 482,944 |
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| (191,671 | ) |
| 291,273 |
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| 1,047,473 |
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| (196,699 | ) |
| 850,774 |
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Income/(loss) before income taxes/(benefit) |
| (142,556 | ) |
| 192,610 |
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| 50,054 |
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| (67,046 | ) |
| 197,638 |
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| 130,592 |
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Provision for income taxes/(benefit) |
| (58,220 | ) |
| 78,635 |
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| 20,415 |
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| (27,559 | ) |
| 80,709 |
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| 53,150 |
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Net income/(loss) | $ | (84,336 | ) | $ | 113,975 |
| $ | 29,639 |
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| $ | (39,487 | ) | $ | 116,929 |
| $ | 77,442 |
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Earnings per share: (3) |
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Basic | $ | (2.47 | ) | $ | 3.34 |
| $ | 0.87 |
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| $ | (1.24 | ) | $ | 3.67 |
| $ | 2.43 |
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Diluted | $ | (2.47 | ) | $ | 2.77 |
| $ | 0.72 |
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| $ | (1.24 | ) | $ | 3.16 |
| $ | 2.09 |
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As a percentage of net revenues: |
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Compensation and benefits |
| 116.3 | % |
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| 62.3 | % |
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| 83.5 | % |
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| 64.5 | % |
Non-compensation operating expenses |
| 25.6 | % |
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| 23.0 | % |
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| 23.3 | % |
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| 22.2 | % |
Income/(loss) before income taxes/(benefit) |
| (41.9) | % |
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| 14.7 | % |
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| (6.8) | % |
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| 13.3 | % |
(3) GAAP earnings per share for the three and nine months ended September 30, 2010 is calculated using the basic weighted average number of common shares outstanding of 34.1 million and 31.9 million, respectively, not fully dilutive shares, as they are anti-dilutive in periods a loss is incurred. Net loss for the three and nine months ended September 30 2010, using fully dilutive shares of 41.2 million and 37.1 million, was $2.05 and $1.07, respectively.
Conference Call Information
Stifel Financial Corp. will host its third quarter 2010 financial results conference call on Tuesday, November 9, 2010, at 8:30 a.m. Eastern time. The conference call may include forward-looking statements.
All interested parties are invited to listen to the company's Chairman, President and CEO, Ronald J. Kruszewski, by dialing (888) 676-3684 and referencing conference ID #22760334. 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 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 primarily served in the U.S. through 314 offices in 44 states, and the District of Columbia through Stifel, Nicolaus & Company, Incorporated and Thomas Weisel Partners LLC, and in Canada through Stifel Nicolaus Canada Inc. Clients in the United Kingdom and Europe are served through offices of Stifel Nicolaus Limited and Thomas Weisel Partners International Limited. Each of the broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, commercial and retail banking 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. To learn more about Stifel, please visit the company's web site at www.stifel.com.
Forward-Looking Statements
This press 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 press release not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements in this press 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 the 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.
Stifel Financial Corp. | |||||||||||||||||||||||
Summary Results of Operations (Unaudited) | |||||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||||
| Three Months Ended |
| Nine Months Ended | ||||||||||||||||||||
| 9/30/10 |
| 9/30/09 |
| Change |
| 6/30/10 |
| Change |
| 9/30/10 |
| 9/30/09 |
| Change | ||||||||
Revenues: |
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Principal transactions | $ | 123,194 |
| $ | 123,238 |
| 0.0 | % |
| $ | 122,923 |
| 0.2 | % |
| $ | 363,537 |
| $ | 341,777 |
| 6.4 | % |
Commissions |
| 96,986 |
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| 90,905 |
| 6.7 |
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| 103,634 |
| (6.4 | ) |
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| 305,655 |
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| 246,236 |
| 24.1 |
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Asset management and service fees |
| 50,876 |
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| 27,012 |
| 88.4 |
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| 44,138 |
| 15.3 |
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| 136,117 |
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| 78,266 |
| 73.9 |
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Investment banking |
| 51,656 |
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| 35,056 |
| 47.4 |
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| 41,252 |
| 25.2 |
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| 127,129 |
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| 75,262 |
| 68.9 |
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Other income |
| 3,656 |
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| 5,072 |
| (27.9 | ) |
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| 3,757 |
| (2.7 | ) |
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| 9,358 |
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| 6,148 |
| 52.2 |
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Operating revenues |
| 326,368 |
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| 281,283 |
| 16.0 |
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| 315,704 |
| 3.4 |
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| 941,796 |
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| 747,689 |
| 26.0 |
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Interest revenue |
| 17,718 |
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| 11,306 |
| 56.7 |
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| 14,654 |
| 20.9 |
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| 47,019 |
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| 31,782 |
| 47.9 |
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Total revenues |
| 344,086 |
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| 292,589 |
| 17.6 |
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| 330,358 |
| 4.2 |
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| 988,815 |
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| 779,471 |
| 26.9 |
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Interest expense |
| 3,698 |
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| 2,906 |
| 27.2 |
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| 2,349 |
| 57.4 |
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| 8,388 |
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| 8,302 |
| 1.0 |
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Net revenues |
| 340,388 |
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| 289,683 |
| 17.5 |
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| 328,009 |
| 3.8 |
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| 980,427 |
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| 771,169 |
| 27.1 |
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Non-interest expenses: |
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Compensation and benefits |
| 395,936 |
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| 193,131 |
| 105.0 |
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| 216,907 |
| 82.5 |
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| 819,085 |
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| 516,852 |
| 58.5 |
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Occupancy and equipment rental |
| 29,559 |
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| 24,730 |
| 19.5 |
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| 26,595 |
| 11.1 |
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| 81,012 |
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| 63,311 |
| 28.0 |
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Communications and office supplies |
| 19,877 |
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| 14,429 |
| 37.8 |
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| 15,925 |
| 24.8 |
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| 50,220 |
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| 39,403 |
| 27.5 |
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Commission and floor brokerage |
| 7,972 |
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| 6,486 |
| 22.9 |
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| 5,272 |
| 51.2 |
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| 18,988 |
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| 17,167 |
| 10.6 |
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Other operating expenses |
| 29,600 |
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| 20,071 |
| 47.4 |
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| 27,365 |
| 8.2 |
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| 78,168 |
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| 55,336 |
| 41.3 |
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Total non-interest expenses |
| 482,944 |
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| 258,847 |
| 86.6 |
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| 292,064 |
| 65.4 |
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| 1,047,473 |
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| 692,069 |
| 51.4 |
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Provision for income taxes/(benefit) |
| (58,220 | ) |
| 8,698 |
| * |
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| 14,836 |
| * |
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| (27,559 | ) |
| 27,970 |
| * |
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Net income/(loss) | $ | (84,336 | ) | $ | 22,138 |
| * | % |
| $ | 21,109 |
| * | % |
| $ | (39,487 | ) | $ | 51,130 |
| * | % |
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|
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic | $ | (2.47 | ) | $ | 0.77 |
| * | % |
| $ | 0.68 |
| * | % |
| $ | (1.24 | ) | $ | 1.85 |
| * | % |
Diluted (4) | $ | (2.47 | ) | $ | 0.67 |
| * | % |
| $ | 0.60 |
| * | % |
| $ | (1.24 | ) | $ | 1.62 |
| * | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| 34,134 |
|
| 28,708 |
| 18.9 | % |
|
| 30,838 |
| 10.7 | % |
|
| 31,910 |
|
| 27,652 |
| 15.4 | % |
Diluted |
| 41,223 |
|
| 32,817 |
| 25.7 | % |
|
| 34,901 |
| 18.2 | % |
|
| 37,062 |
|
| 31,468 |
| 17.8 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Percentage is not meaningful. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) Earnings per diluted common share are calculated using the basic weighted average number of common shares outstanding in periods a loss is incurred. |
|
|
| ||||||||||||||||||||
Stifel Financial Corp. | ||||||||||||||
(in thousands, except per share, employee and location amounts) | ||||||||||||||
| 9/30/10 |
| 9/30/09 |
| Change |
| 6/30/10 |
| Change | |||||
Statistical Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share | $ | 33.97 |
| $ | 27.63 |
| 22.9 | % |
| $ | 30.02 |
| 13.2 | % |
Financial advisors (5) |
| 1,920 |
|
| 1,823 |
| 5.3 | % |
|
| 1,916 |
| 0.2 | % |
Full-time associates |
| 4,868 |
|
| 4,289 |
| 13.5 | % |
|
| 4,587 |
| 6.1 | % |
Locations |
| 311 |
|
| 281 |
| 10.7 | % |
|
| 301 |
| 3.3 | % |
Total client assets | $ | 100,289,000 |
| $ | 83,501,000 |
| 20.1 | % |
| $ | 92,423,000 |
| 8.5 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) Includes 165, 183 and 167 independent contractors at September 30, 2010 and 2009 and June 30, 2010, respectively. |
|
| ||||||||||||
Global Wealth Management Results and Statistical Information (Unaudited) | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
| Three Months Ended |
| Nine Months Ended | ||||||||||||||||||||
| 9/30/10 |
| 9/30/09 |
| Change |
| 6/30/10 |
| Change |
| 9/30/10 |
| 9/30/09 |
| Change | ||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions | $ | 69,875 |
| $ | 63,161 |
| 10.6 | % |
| $ | 79,521 |
| (12.1) | % |
| $ | 228,983 |
| $ | 158,468 |
| 44.5 | % |
Principal transactions |
| 62,785 |
|
| 53,052 |
| 18.3 |
|
|
| 58,675 |
| 7.0 |
|
|
| 181,331 |
|
| 140,248 |
| 29.3 |
|
Asset management and service fees |
| 50,449 |
|
| 26,920 |
| 87.4 |
|
|
| 43,777 |
| 15.2 |
|
|
| 135,120 |
|
| 77.981 |
| 73.3 |
|
Net interest |
| 12,017 |
|
| 7,186 |
| 67.2 |
|
|
| 11,506 |
| 4.4 |
|
|
| 34,557 |
|
| 18,124 |
| 90.7 |
|
Investment banking |
| 6,957 |
|
| 4,263 |
| 63.2 |
|
|
| 5,494 |
| 26.6 |
|
|
| 17,753 |
|
| 9,176 |
| 93.5 |
|
Other income |
| 5,401 |
|
| 4,077 |
| 32.5 |
|
|
| 967 |
| * |
|
|
| 9,101 |
|
| 5,914 |
| 53.9 |
|
Net revenues |
| 207,484 |
|
| 158,659 |
| 30.8 |
|
|
| 199,940 |
| 3.8 |
|
|
| 606,845 |
|
| 409,911 |
| 48.0 |
|
Non-interest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
| 119,100 |
|
| 96,711 |
| 23.2 |
|
|
| 123,609 |
| (3.6 | ) |
|
| 367,447 |
|
| 253,169 |
| 45.1 |
|
Non-compensation operating expenses |
| 36,677 |
|
| 32,894 |
| 11.5 |
|
|
| 35,890 |
| 2.2 |
|
|
| 108,092 |
|
| 86,369 |
| 25.2 |
|
Total non-interest expenses |
| 155,777 |
|
| 129,605 |
| 20.2 |
|
|
| 159,499 |
| (2.3 | ) |
|
| 475,539 |
|
| 339,538 |
| 40.1 |
|
Income before income taxes | $ | 51,707 |
| $ | 29,054 |
| 78.0 | % |
| $ | 40,441 |
| 27.9 | % |
| $ | 131,306 |
| $ | 70,373 |
| 86.6 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percentage of net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
| 57.4 | % |
| 61.0 | % |
|
|
|
| 61.8 | % |
|
|
|
| 60.6 | % |
| 61.8 | % |
|
|
Non-compensation operating expenses |
| 17.7 | % |
| 20.7 | % |
|
|
|
| 18.0 | % |
|
|
|
| 17.8 | % |
| 21.0 | % |
|
|
Income before income taxes |
| 24.9 | % |
| 18.3 | % |
|
|
|
| 20.2 | % |
|
|
|
| 21.6 | % |
| 17.2 | % |
|
|
* Percentage is not meaningful. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stifel Bank & Trust | ||||||||||||||
(in thousands) | ||||||||||||||
| 9/30/10 |
| 9/30/09 |
| Change |
| 6/30/10 |
| Change | |||||
Other information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets | $ | 1,516,484 |
| $ | 965,569 |
| 57.1 | % |
| $ | 1,392,828 |
| 8.9 | % |
Investment securities | $ | 830,127 |
| $ | 300,623 |
| 176.2 | % |
| $ | 740,121 |
| 12.2 | % |
Retained loans, net | $ | 364,732 |
| $ | 325,443 |
| 12.1 | % |
| $ | 366,391 |
| (0.5) | % |
Loans held for sale, net | $ | 106,788 |
| $ | 30,947 |
| 245.1 | % |
| $ | 60,154 |
| 77.5 | % |
Deposits | $ | 1,375,984 |
| $ | 875,028 |
| 57.3 | % |
| $ | 1,255,292 |
| 9.6 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance as a percentage of loans (6) |
| 0.50 | % |
| 0.76 | % |
|
|
|
| 0.53 | % |
|
|
Non-performing assets as a percentage of total assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6) Excluding acquired loans of $174.8 million, $140.0 million and $174.8 million, the allowance as a percentage of gross loans totaled 0.95%, 1.33% and 1.00% as of September 30, 2010 and 2009 and June 30, 2010, respectively. |
| |||||||||||||
Institutional Group Results and Statistical Information (Unaudited) | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
| Three Months Ended |
| Nine Months Ended | ||||||||||||||||||||
| 9/30/10 |
| 9/30/09 |
| Change |
| 6/30/10 |
| Change |
| 9/30/10 |
| 9/30/09 |
| Change | ||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal transactions | $ | 60,408 |
| $ | 70,186 |
| (13.9) | % |
| $ | 64,249 |
| (6.0) | % |
| $ | 182,206 |
| $ | 201,529 |
| (9.6) | % |
Commissions |
| 27,111 |
|
| 27,743 |
| (2.3 | ) |
|
| 24,113 |
| 12.4 |
|
|
| 76,672 |
|
| 87,767 |
| (12.6 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital raising |
| 22,575 |
|
| 18,070 |
| 24.9 |
|
|
| 25,220 |
| (10.5 | ) |
|
| 67,799 |
|
| 32,890 |
| 106.1 |
|
Advisory fees |
| 23,063 |
|
| 12,724 |
| 81.3 |
|
|
| 10,539 |
| 118.8 |
|
|
| 42,516 |
|
| 33,197 |
| 28.1 |
|
Investment banking |
| 45,638 |
|
| 30,794 |
| 48.2 |
|
|
| 35,759 |
| 27.6 |
|
|
| 110,315 |
|
| 66,087 |
| 66.9 |
|
Other income (7) |
| 4,886 |
|
| 1,456 |
| 235.6 |
|
|
| 481 |
| * |
|
|
| 6,744 |
|
| 5,404 |
| 24.8 |
|
Net revenues |
| 138,043 |
|
| 130,179 |
| 6.0 |
|
|
| 124,602 |
| 10.8 |
|
|
| 375,937 |
|
| 360,787 |
| 4.2 |
|
Non-interest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
| 82,147 |
|
| 77,483 |
| 6.0 |
|
|
| 72,578 |
| 13.2 |
|
|
| 221,029 |
|
| 214,251 |
| 3.2 |
|
Non-compensation operating expenses |
| 28,242 |
|
| 19,263 |
| 46.6 |
|
|
| 21,255 |
| 32.9 |
|
|
| 69,029 |
|
| 55,219 |
| 25.0 |
|
Total non-interest expenses |
| 110,389 |
|
| 96,746 |
| 14.1 |
|
|
| 93,833 |
| 17.6 |
|
|
| 290,058 |
|
| 269,470 |
| 7.6 |
|
Income before income taxes | $ | 27,654 |
| $ | 33,433 |
| (17.3) | % |
| $ | 30,769 |
| (10.1) | % |
| $ | 85,879 |
| $ | 91,317 |
| (6.0) | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percentage of net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
| 59.5 | % |
| 59.5 | % |
|
|
|
| 58.2 | % |
|
|
|
| 58.8 | % |
| 59.4 | % |
|
|
Non-compensation operating expenses |
| 20.5 | % |
| 14.8 | % |
|
|
|
| 17.1 | % |
|
|
|
| 18.4 | % |
| 15.3 | % |
|
|
Income before income taxes |
| 20.0 | % |
| 25.7 | % |
|
|
|
| 24.7 | % |
|
|
|
| 22.8 | % |
| 25.3 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7) Includes net interest and other income. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
* Percentage is not meaningful. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Institutional Group Institutional Brokerage & Investment Banking Revenues (Unaudited) | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
| Three Months Ended |
| Nine Months Ended | ||||||||||||||||||||
| 9/30/10 |
| 9/30/09 |
| Change |
| 6/30/10 |
| Change |
| 9/30/10 |
| 9/30/09 |
| Change | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Institutional brokerage: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity | $ | 43,711 |
| $ | 39,733 |
| 10.0 | % |
| $ | 44,099 |
| (0.9) | % |
| $ | 126,462 |
| $ | 114,598 |
| 10.4 | % |
Fixed Income |
| 43,808 |
|
| 58,196 |
| (24.7 | ) |
|
| 44,263 |
| (1.0 | ) |
|
| 132,416 |
|
| 174,698 |
| (24.2 | ) |
Institutional brokerage |
| 87,519 |
|
| 97,929 |
| (10.6 | ) |
|
| 88,362 |
| (1.0 | ) |
|
| 258,878 |
|
| 289,296 |
| (10.5 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital raising: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
| 18,060 |
|
| 13,181 |
| 37.0 |
|
|
| 20,810 |
| (13.2 | ) |
|
| 52,957 |
|
| 21,423 |
| 147.2 |
|
Fixed Income |
| 4,515 |
|
| 4,889 |
| (7.6 | ) |
|
| 4,410 |
| 2.3 |
|
|
| 14,842 |
|
| 11,467 |
| 29.4 |
|
Capital raising |
| 22,575 |
|
| 18,070 |
| 24.9 |
|
|
| 25,220 |
| (10.5 | ) |
|
| 67,799 |
|
| 32,890 |
| 106.1 |
|
Advisory fees: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
| 20,281 |
|
| 11,371 |
| 78.4 |
|
|
| 9,215 |
| 120.1 |
|
|
| 37,981 |
|
| 30,682 |
| 23.8 |
|
Fixed Income |
| 2,782 |
|
| 1,353 |
| 105.6 |
|
|
| 1,324 |
| 110.2 |
|
|
| 4,535 |
|
| 2,515 |
| 80.4 |
|
Advisory fees |
| 23,063 |
|
| 12,724 |
| 81.3 |
|
|
| 10,539 |
| 118.8 |
|
|
| 42,516 |
|
| 33,197 |
| 28.1 |
|
Investment banking | $ | 45,638 |
| $ | 30,794 |
| 48.2 | % |
| $ | 35,759 |
| 27.6 | % |
| $ | 110,315 |
| $ | 66,087 |
| 66.9 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Relations Contact |
| Sarah Anderson, (415) 364-2500 |
| investorrelations@stifel.com |