November 2013 Stifel Investor Presentation Exhibit 99.1 |
Disclaimer Forward-Looking Statements This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks, assumptions, and uncertainties, including statements relating to the market opportunity and 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. In particular, these statements may refer to our goals, intentions, and expectations, our business plans and growth strategies, our ability to integrate and manage our acquired businesses, estimates of our risks and future costs and benefits, and forecasted demographic and economic trends relating to our industry. You should not place undue reliance on any forward-looking statements, which speak only as of the date they were made. We will not update these forward-looking statements, even though our situation may change in the future, unless we are obligated to do so under federal securities laws. 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 and include, among other things, changes in general economic and business conditions, actions of competitors, regulatory and legal actions, changes in legislation, and technology changes. Note Regarding the Use of 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. 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 the overall understanding of the Company’s current financial performance. |
Market Overview |
Domestic Equity Flows Equity Risk Premium 4 Market Overview |
Stifel Overview |
Stifel Overview Global Wealth Management Institutional Group Independent Research Institutional Equity & Fixed Income Brokerage Equity & Fixed Income Capital Raising M&A Advisory / Restructuring Private Client Stifel Bank & Trust Customer Financing Asset Management (1) As of 11/11/13. (2) Insider ownership percentage includes all fully diluted shares, units outstanding, options outstanding, as well as shares owned by Stifel’s former Chairman as of 11/13/13. Stifel Financial (NYSE: SF) National presence with over 2,000 Financial Advisors $153 billion in total client assets Largest U.S. equity research platform Broad product portfolio & industry expertise _________________________________________________________ |
7 Stifel’s Market Opportunity Stifel’s Differentiated Value Proposition: Growth, Scale, and Stability Bulge Bracket Middle Market Firm focus Good research Growth investor access Issues Lack of focus Banker turnover Lack of commitment Research indifference Lack of growth investors Issues Financial / firm stability Trading support Few with retail Size / scale Firm focus Stability (financial & personnel) Large distribution Growth investor access Trading Outstanding research Retail Size / scale Large distribution Trading Retail |
Strategy: Building the Premier Investment Bank 8 Unburdened by capital constraints Low leverage business model and conservative risk management Built the Company through 12 acquisitions since 2005; prudently evaluate all opportunities Capitalize on headwinds across the industry Select growth of high-quality talent Drive revenue synergies by leveraging the global wealth and institutional businesses 17 Consecutive Year of Record Net Revenues Position Stifel to Take Advantage of Opportunities th |
(1) CAGR reflects years 2006 to 2012. (2) Client assets - Includes FDIC-insured products as of 9/30 for years 2008-2013 (3) Includes Independent Contractors. (4) Book Value Per Share adjusted for April 2011 three-for-two stock split (2006-2010). A Growth Story… 9 Net Revenues ($MM) (1) Core Net Income ($MM) (1) Total Equity ($MM) Total Client Assets ($BN) (2) Book Value Per Share (4) Financial Advisors (3) _________________________________________________________ |
10 Building Scale… Growth Focused Investment Banking Research, Sales and Trading Achieved cost efficiencies July 2010 Private Client Revenue production has exceeded expectations October 2009 Significant enhancement to our Capital Markets business Achieved cost savings objectives December 2005 Bank holding company Financial holding company Grown assets from ~ $100M to $3.2B April 2007 Private Client Public Finance Seamless & efficient integration December 2008 Fixed Income IB Fixed Income Sales and Trading Private Client Seamless & efficient integration October 2011 FIG Investment Banking FIG Sales and Trading FIG Research February 2013 56 UBS Branches Private Client Capital Markets Achieved cost savings objectives February 2007 Each merger has been accretive to Stifel Retention remains high Restructuring advisory December 2012 Knight Fixed Income Fixed Income Sales and Trading – U.S. & Europe Fixed Income Research July 2013 Asset Management Announced October 2013 Clean portfolio of 1-4 family residential mortgages October 2013 |
Stability Achieved Through A Balanced Business Model 11 Net Revenues Balanced business model facilitates growth during volatile markets Stable GWM business is augmented by profitable and growing Institutional Group Proven ability to grow all businesses Operating Contribution 9 mo 2012 9 mo 2013 9 mo 2012 9 mo 2013 Note: Net revenues and operating contribution excludes the Other segment. 11 _________________________________________________________ |
12 Leverage Ratio Total Assets ($ in Billions) Book Value Per Share (1) Total Capitalization ($ in Billions) (1) Per share information adjusted for April 2011 three-for-two stock split Strong Balance Sheet Facilitates Growth As September 30, 2013 |
13 Top Performing Stock Cumulative Price Appreciation As of November 12, 2013 Since 12/31/12 Since 12/31/07 Since 12/31/00 Morgan Stanley 55.65% Stifel Financial Corp. 82.97% Stifel Financial Corp. 1027.47% Stifel Financial Corp. 33.72% Raymond James Financial 40.63% Raymond James Financial 196.32% Goldman Sachs Group 27.70% S&P 500 Index 20.39% Goldman Sachs Group 52.32% S&P 500 Index 23.94% JMP Group -24.17% S&P 500 Index 33.89% Raymond James Financial 19.21% Goldman Sachs Group -24.25% Oppenheimer -17.84% Oppenheimer 14.65% Piper Jaffray -24.44% Morgan Stanley -62.45% SWS Group 10.59% Morgan Stanley -43.97% SWS Group -62.70% Piper Jaffray 8.93% Oppenheimer -53.25% JMP Group NM JMP Group 5.93% SWS Group -53.83% Piper Jaffray NM |
Attract and retain high-quality talent Continue to expand our private client footprint in the U.S. Continue to expand fixed income businesses Continue to expand investment banking capabilities Focus on quality asset generation within Stifel Bank Expand traditional asset management capabilities Approach acquisition opportunities with discipline Opportunities Drive our Growth 14 Initiatives |
Recent Merger Updates |
16 We announced KBW transaction November 5, 2012 and closed February 15, 2013. Integration has gone very well. YTD advisory success: #1 by number of bank mergers (1) #1 by number of Insurance mergers (2) #2 by number of FIG mergers (1) #3 by bank deal value (1) Seeing increased market share in common equity FIG deals and equity trading volumes. Achieved superior recognition in independent research, sales and trading rankings. Successful conference pattern with a number attracting record levels of attendees Miller Buckfire transaction was completed December 31, 2012. Transaction has already resulted in nine completed or ongoing transactions. A number of these were won by leveraging/including other capabilities across Stifel. Won assignments on a number of high profile advisory engagements including the City of Detroit, Lehman Brothers, UniTek, Furniture Brands, Excel Maritime, and OnCor. Fixed Income Knight Fixed Income transaction closed on July 1, 2013. Welcomed approximately 90 professionals to the firm. 3Q revenues in line with our expectations. Sales and trading integration has gone very well and complimenting existing Stifel capabilities. Investment grade, high yield, and loan trading focus. Primarily located in London, Greenwich and New York. M&A Statistics Source: SNL Financial (1) Includes transactions announced since 1/1/2013; Data as of 10/21/2013 (2) Includes transactions announced since 1/1/2005; Data as of 10/29/2013 Recent Merger Updates _________________________________________________________ |
17 Previously announced acquisition of Acacia Federal Savings Bank ($525mm in assets) by Stifel Bank & Trust closed on October 31, 2013 at an attractive discount to tangible book value. All non-performing loans were excluded from transaction Expect significant synergies in connection with single branch closing in 1Q2014 Immediately accretive to Stifel Financial tangible book value/share. Expected to add $10 million to core earnings for the next few years. Entirely funded with Bank deposits Consistent with asset generation strategy within the bank. Announced acquisition of Ziegler Lotsoff Capital Management (ZLCM) October 16 Chicago and Milwaukee based asset management company that currently manages $4.3 billion in assets. ZLCM management team brings additional experience and capabilities to Stifel’s existing Asset Management efforts Opportunity to bring other Stifel Asset Management capabilities under one umbrella. Total AUM of combined entities will exceed $9 billion. Expected closing 11/30/2013 Recent Merger Updates th |
Global Wealth Management |
Global Wealth Management Provides Securities Brokerage Services and Stifel Bank Products 19 Grown from 600+ financial advisors in 2005 to over 2,000 (1) financial advisors currently Proven organic growth and acquirer of private client business (56 UBS branches, Butler Wick, Ryan Beck) Retail investors are generally mid- to long-term buyers Goal of providing price stability and support to the institutional order book Strategy of recruiting experienced advisors with established client relationships Expanding U.S. footprint Net Revenues ($MM) (2) Overview Operating Contribution ($MM) (2) (1) Includes Independent Contractors. (2) CAGR reflects years 2006 to 2012. _________________________________________________________ |
(1) Includes Independent Contractors. (2) Client assets include FDIC-insured products as of 9/30/13 for years 2008-2013. Global Wealth Management 20 Opportunity Through Growth GWM Account Growth GWM Broker Growth (1) GWM Assets Under Management Growth ($MM) (2) GWM Branch Growth _________________________________________________________ |
Global Wealth Management – Stifel Bank & Trust Offers banking products (securities based loans and mortgage loans) within the GWM client base, including establishing trust services Built-in source of business High net worth clients Highly efficient due to lack of “brick and mortar” deposit focused facilities Overview Strength of Brokerage Position 21 Acquired FirstService Bank, a St. Louis-based, Missouri-chartered commercial bank, in April 2007 Stifel Financial became a bank holding company and financial services holding company Balance sheet growth with low-risk assets Funded by Stifel Nicolaus client deposits Maintain high levels of liquidity Interest Earnings Assets (1) Investment Portfolio Loan Portfolio (Gross) Total: $4.0 Billion Total: $3.0 Billion (2) Total: $1.1 Billion (3) Note: Data as of 9/30/13 (1) Average interest earning assets as of 9/30/13. (2) MBS makes up less than 1% of Investment Portfolio (3) Construction and Land and Commercial Real Estate make up less than 1% of the loan portfolio _________________________________________________________ |
Institutional Group |
(1) Based on 2012 U.S. trading volume per Bloomberg. (2) Includes TWPG historical investment banking and brokerage revenues for years 2006 through September 30, 2010. (3) 2012 includes realized and unrealized gains on the Company’s investment in Knight Capital Group, Inc. of $39.0 million. Institutional Group 23 Net Revenues ($MM) (2)(3) Equity Brokerage + Investment Banking (2) Fixed Income Brokerage + Investment Banking Overview Provides securities brokerage, trading, research, underwriting and corporate advisory services Largest providers of U.S. Equity Research 2 largest Equity trading platform in the U.S. outside of the Bulge Bracket (1) Full Service Investment Bank Comprehensive Fixed Income platform nd |
Largest provider of U.S. equity research #1 in Overall, Mid and Small Cap Coverage Largest provider of Financial Services coverage Deep expertise across 12 major sectors Ranked #2 in the FT/Starmine 2013 Survey Largest U.S. Equity Research Platform U.S. Equity Research Coverage (1) Coverage Balanced Across All Market Caps (2) Institutional Group – Research Stifel Research Highlights 24 (1) Source: StarMine rankings as of 10/30/13. Does not include Closed End Funds. (2) Small Cap includes market caps less than $1 billion; Mid Cap includes market caps less than $5 billion. Research coverage distribution as of 10/30/13. Small Cap 29% Mid Cap 35% Large Cap 36% _________________________________________________________ Rank Firm Overall Mid Cap Small Cap 1 Stifel/KBW 1,341 499 428 2 BofA Merrill Lynch 1,142 448 153 3 JPMorgan 1,115 423 162 4 Goldman Sachs 1,014 376 88 5 Raymond James 1,001 393 302 6 Wells Fargo Securities, Llc 988 394 161 7 Barclays 947 354 88 8 Credit Suisse 904 318 132 9 Citi 902 299 101 10 Deutsche Bank Securities 875 294 117 11 Jefferies & Co. 853 298 167 12 Morgan Stanley 844 286 82 13 S&P Capital Iq 833 234 33 14 RBC Capital Markets 788 298 112 15 UBS 737 245 67 16 Morningstar, Inc. 702 179 24 17 Robert W. Baird & Co., Inc. 676 260 156 18 Sidoti & Company LLC 650 216 426 19 BMO Capital Markets 592 211 80 20 Cowen And Company 571 179 156 21 William Blair & Company, L.L.C. 562 197 153 22 Piper Jaffray 522 185 173 23 Keybanc Capital Markets 510 248 105 24 Macquarie Research Equities 506 171 54 25 Oppenheimer & Co. 504 176 109 |
Institutional Equity Sales 110 person sales force, commission based Experts in small and mid cap growth and value Team based sales model with 2-4 sales people per account Team leaders have an average of 15 years experience Offices in all major institutional markets in North America & Europe Accounts range from large mutual funds to small industry focused investors Managed over 741 non-deal roadshow days in 2012 Extensive experience with traditional and overnight corporate finance transactions Equity Trading 53 sales traders located in Baltimore, New York, Boston, Dallas, San Francisco, Cleveland and London 24 position traders covering each major industry 8 specialized traders focused on: Option Trading, Convertible and ETF Trading Agency model – no proprietary trading or prime brokerage Profitable model with advantages of scale Institutional Group – Equity Sales and Trading Powerful Platform Spanning North America and Europe 25 Extensive Distribution Network Agency model – no proprietary trading or prime brokerage Major liquidity provider to largest equity money management complexes Multi-execution venues: high-touch, algorithms, program trading and direct market access Dedicated convertible sales, trading and research desk |
Overview Strong Fixed Income Capital Markets Capabilities Institutional Group – Fixed Income Client Distribution (1)(2) Platform & Products Focus on long-only money managers and income funds versus hedge funds Consistency of execution Identification of relative value through security selection Agency/Gov't Securities Money Markets Mortgages & MBS Reverse MBS Asset-Backed Securities Investment Grade Credit High Yield & Distressed Aircraft Finance & Credit Solutions Whole Loans Municipals Emerging Markets Structured Products Stifel Capital Advisors Hybrid Securities Dedicated Loan Trading Group Capable UK Sales & Trading platform (former Knight team) (1) Client Distribution is for 1/1/12 – 10/31/13. (2) Other category includes: Corporation, Hedge Fund, Pension Fund, Trust Company, Foundation, Endowment, University & Non-Profit. 26 Comprehensive platform 69 traders with annual client trade volume approaching $400 billion 33-person Fixed Income Research and Strategy Group Widespread distribution More than 180 Institutional sales professionals covering over 4,400 accounts 33 institutional fixed income offices nationwide European offices in London and Zurich _________________________________________________________ |
Accomplished U.S. Equity Underwriting Franchise – All Equity Transactions Investment Banking Bookrun Equity Deals Since 2010 All Managed Equity Deals Since 2010 27 Source: Dealogic. Rank eligible SEC registered IPOs and Follow-On offerings since 2010. Includes demutualizations. As of 9/30/13. Overlapping deals between Stifel and its acquired firms have been removed. Note: $ Volume represents full credit to underwriter for All Managed Equity Deals and apportioned credit to bookrunner for Bookrun Equity Deals. Bold font indicates middle-market firms. ($ in billions) # of $ Rank Firm Deals Volume 1 Bank of America Merrill Lynch 781 $469.7 2 JPMorgan 769 $455.5 3 Citi 725 $451.3 4 Morgan Stanley 688 $436.5 5 Barclays 631 $369.1 6 Wells Fargo Securities 629 $337.1 7 Deutsche Bank 623 $380.9 8 Credit Suisse 616 $374.5 9 Stifel / Keefe, Bruyette & Woods 595 $221.9 10 RBC Capital Markets 569 $264.3 11 Goldman Sachs 546 $378.1 12 UBS 517 $292.3 13 Raymond James 424 $208.7 14 Robert W Baird & Co 308 $77.2 15 Piper Jaffray & Co 300 $142.2 16 Jefferies LLC 282 $58.0 17 Oppenheimer & Co Inc 264 $67.2 18 JMP Securities LLC 259 $50.3 19 William Blair & Co LLC 209 $61.8 20 Cowen & Co LLC 205 $50.2 ($ in billions) # of $ Rank Firm Deals Volume 1 Bank of America Merrill Lynch 710 $86.4 2 JPMorgan 670 $89.1 3 Citi 626 $81.9 4 Morgan Stanley 624 $100.1 5 Barclays 512 $74.0 6 Credit Suisse 490 $63.3 7 Goldman Sachs 482 $82.8 8 Deutsche Bank 474 $54.1 9 Wells Fargo Securities 437 $34.5 10 UBS 349 $36.3 11 Jefferies LLC 227 $13.5 12 RBC Capital Markets 193 $14.4 13 Stifel / Keefe, Bruyette & Woods 187 $9.3 14 Raymond James 118 $6.5 15 Piper Jaffray & Co 101 $4.4 16 Roth Capital Partners 79 $1.5 17 Cowen & Co LLC 77 $2.4 18 Robert W Baird & Co 69 $3.2 19 Lazard Capital Markets 62 $1.8 20 Leerink Swann LLC 56 $2.0 _________________________________________________________ |
Financial Results |
29 (1) Non-core adjustments consist of merger-related revenues and expenses associated with our acquisitions of KBW, the Knight Capital Fixed Income business, Miller Buckfire and a U.S. tax benefit. (2) Core (non-GAAP) results for the three months ended September 30, 2012 are the same as GAAP results. Stifel Financial Results Three months ended September 30, 2013 _________________________________________________________ |
30 Unusual Items (1) Included in compensation expense is a $5.0 million compensation accrual as a result of the recognition of the U.S. tax benefit during the three months ended September 30, 2013. (2) Included in the provision for income taxes is a U.S. tax benefit arising out of the Company’s investment in Stifel Nicolaus Canada, Inc. of $58.2 million. _________________________________________________________ Merger-Related Expenses, Discontinued Ops, & U.S. Tax Benefit |
31 Discontinued Operations |
32 Stifel Financial Results Nine months ended September 30, 2013 (1) Non-core adjustments consist of a charges related to expensing stock awards issued as retention in connection with the acquisitions of KBW and the Knight Capital Fixed Income business and other merger- related revenues and expenses associated with our acquisitions of KBW, the Knight Capital Fixed Income business, Miller Buckfire and a U.S. tax benefit. (2) Core (non-GAAP) results for the nine months ended September 30, 2012 are the same as GAAP results. _________________________________________________________ |
33 Sources of Revenues ($ in thousands) 9/30/13 9/30/12 % Change 6/30/13 % Change 9/30/13 9/30/12 % Change Commissions 145,837 $ 125,509 $ 16.2% 154,795 $ (5.8%) 446,498 $ 370,107 $ 20.6% Principal transactions 122,583 102,474 19.6% 111,306 10.1% 341,153 311,420 9.5% Brokerage revenues 268,420 227,983 17.7% 266,101 0.9% 787,651 681,527 15.6% Capital raising 53,665 44,563 20.4% 71,737 (25.2%) 175,252 139,441 25.7% Advisory 39,186 27,180 44.2% 47,706 (17.9%) 113,947 68,901 65.4% Investment banking 92,851 71,743 29.4% 119,443 (22.3%) 289,199 208,342 38.8% Asset mgt and service fees 76,710 62,881 22.0% 76,088 0.8% 221,711 189,010 17.3% Other 13,063 31,094 (58.0%) 11,787 10.8% 45,269 49,991 (9.4%) Total operating revenues 451,044 393,701 14.6% 473,419 (4.7%) 1,343,830 1,128,870 19.0% Interest revenue 39,130 26,360 48.4% 32,893 19.0% 101,829 78,728 29.3% Total revenues 490,174 420,061 16.7% 506,312 (3.2%) 1,445,659 1,207,598 19.7% Interest expense 11,535 5,904 95.4% 12,634 (8.7%) 34,738 24,768 40.3% Net revenues 478,639 $ 414,157 $ 15.6% 493,678 $ (3.0%) 1,410,921 $ 1,182,830 $ 19.3% Three Months Ended Nine Months Ended |
34 Core Non-Interest Expenses Three months ended September 30, 2013 ($ in thousands) 6/30/13 (1) 6/30/12 % Change 3/31/13 % Change 6/30/13 (1) 6/30/12 3/31/13 Net revenues 500,472 $ 374,407 $ 33.7% 441,788 $ 13.3% 100.0% 100.0% 100.0% Compensation and benefits 294,446 219,004 34.4% 259,135 13.6% 58.8% 58.5% 58.7% Transitional pay (2) 20,867 20,370 2.4% 22,806 (8.5%) 4.2% 5.4% 5.2% Total compensation and benefits 315,313 239,374 31.7% 281,941 11.8% 63.0% 63.9% 63.8% Occupancy and equipment rental 38,306 32,320 18.5% 31,501 21.6% 7.7% 8.6% 7.1% Communication and office supplies 24,604 20,797 18.3% 21,858 12.6% 4.9% 5.6% 4.9% Commissions and floor brokerage 9,616 7,747 24.1% 8,669 10.9% 1.9% 2.1% 2.0% Other operating expenses 38,707 30,295 27.8% 34,127 13.4% 7.7% 8.1% 7.6% Total non-comp operating expenses 111,233 91,159 22.0% 96,155 15.7% 22.2% 24.3% 21.8% Total non-interest expense 426,546 330,533 29.0% 378,096 12.8% 85.2% 88.3% 85.6% Income before income taxes 73,926 43,874 68.5% 63,692 16.1% 14.8% 11.7% 14.4% Provision for income taxes 29,570 17,738 66.7% 23,808 24.2% 5.9% 4.6% 5.4% Non-GAAP net income 44,356 $ 26,136 $ 69.7% 39,884 $ 11.2% 8.9% 7.0% 9.0% Non-core expenses (after-tax) (14,921) - (25,265) GAAP net income 29,435 $ 26,136 $ 14,619 $ Three Months Ended % of Net revenues _________________________________________________________ (1) Excludes non-core adjustments consisting of merger-related revenues and expenses associated with our acquisitions of KBW, the Knight Capital Fixed Income business, Miller Buckfire and the U.S. tax benefit.. (2) Transition pay includes amortization of upfront notes, signing bonuses and retention awards. |
35 Core Non-Interest Expenses Nine months ended September 30, 2013 ($ in thousands) 9/30/13 (1) 9/30/12 % Change 9/30/13 (1) 9/30/12 Net revenues 1,413,660 $ 1,182,830 $ 19.5% 100.0% 100.0% Compensation and benefits 826,314 699,601 18.1% 58.5% 59.1% Transitional pay (2) 63,414 52,391 21.0% 4.5% 4.4% Total compensation and benefits 889,728 751,992 18.3% 62.9% 63.6% Occupancy and equipment rental 108,596 94,776 14.6% 7.7% 8.0% Communication and office supplies 70,565 60,115 17.4% 5.0% 5.1% Commissions and floor brokerage 27,599 22,339 23.5% 2.0% 1.9% Other operating expenses 112,515 84,212 33.6% 8.0% 7.1% Total non-comp operating expenses 319,275 261,442 22.1% 22.6% 22.1% Total non-interest expense 1,209,003 1,013,434 19.3% 85.5% 85.7% Income from continuing operations before income taxes 204,657 169,396 20.8% 14.5% 14.3% Provision for income taxes 79,817 67,384 18.5% 5.6% 5.6% Non-GAAP net income from continuing operations 124,840 $ 102,012 $ 22.4% 8.8% 8.6% Non-core expenses (after-tax) (4,058) - GAAP net income from continuing operations 120,782 $ 102,012 $ Nine Months Ended % of Net revenues _________________________________________________________ (1) Excludes non-core adjustments consisting of a charge related to expensing stock awards issued as retention in connection with the acquisitions of KBW and the Knight Capital Fixed Income business and other merger-related revenues and expenses associated with our acquisitions of KBW, the Knight Capital Fixed Income business, Miller Buckfire and a U.S. tax benefit. (2) Transition pay includes amortization of upfront notes, signing bonuses and retention awards. |
36 Segment Comparison (1) Core (non-GAAP) results for the three and nine months ended September 30, 2012 are the same as GAAP results. _________________________________________________________ |