SF - Earnings call transcript Q3 2021 | Stifel Financial Corp.

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Operator

Good day and thank you for standing by. Welcome to the Stifel, Third Quarter 2021 Earnings Conference Call. At this time all participants are in a listen-only mode. [Operator Instructions]. Please be advised that today's call is being recorded. now turn would to call I Mr. Instructions] like the to over [Operator of Relations. Jeffrey, Investor Joel Head Please go ahead.

Joel Jeffrey

be on Conference refer I on operator. Jim our everyone on Chairman issued and slide reproduced release, presented our Nesi are press over material Corp. would non-GAAP Third CEO, be disclosed our basis, to non-GAAP Results of financial and reconciliation turn to I you, and Stifel I'm some we and Thank call of we I'd morning would now an information on can I not deck slide in audiocast a Chairman listeners to website, financial and our the to our may release. forward-looking Stifel remind and this and I duplicated, Financials, as a Quarter throughout earnings presentation our state Relations like CEO, to Earlier for posted Ron Jim XXXX of GAAP our earnings supplement Co-Presidents, also Investor refer would is by copyrighted Zemlek; call will to and Marischen. measures. today Ron the and supplement rebroadcast of Stifel Kruszewski. Financial to without the which consent Financial. statements www.stifel.com. and Kruszewski; to or This that page found welcome non-GAAP presentation our release Call. our the at our joined numbers Victor Financial CFO, that our note

Ron Kruszewski

expenses results. months. Marischen quarter I'll thoughts. to highlights taking wrap with morning our concluding you and call with our and listen some the up and will balance to our first I'll To Thanks the guests, for good thank sheet our Jim nine start Joel. third some review Then quarter XXXX from time and

results. highest Global represented and quarter strong our second operating segments earnings net Wealth as Institutional share and both generated third revenue Our per

our recruiting quarter success and Stifel before, continued decade of the billion, build said Revenue nearly and in and I our by on totaled to well organic remains the and an expertise positions, pipelines, continue reinvest growth is in grow. As banking long driven upon our based $X.XX bank investment increase positioned business our knack XX%.

with had revenue, that is fourth achieved quarter. forecast third pleased quarterly certainly which it fact assignments, that into slipped this we quarter in we close While large our noteworthy to the advisory several has despite the the

in strength growth revenue XX% driven revenue than XXXX. For billion, pretax which the in of nine record EPS which month our is and by lower comparable $X.XX XX%. were The expense of is ratios in XX%. up nearly resulted period up resulting generated The we a revenue growth $X.X year-to-date, of year-on-year more of and the period XX% $X.XX, margins expense of up combination discipline, and results in of non-GAAP

our return year. to in returns value and XX% we In common share XX% investors capital, addition, reflecting focus the book Tangible on nearly tangible per increased last equity. also are annualized

Wealth Management quarter the and Institutional was driven revenue our next net record Global Turning to revenue robust third slide, revenues. by

revenues percentage we compensation declined of a as XX.X%. net As to forecasted, sequentially

on Our which operating XX.X%, guidance was totaled within and excluding was and Investment we growth range Banking credit expense ratio provision XX.X% gave the quarter's subs last call.

XXXX. XX% pretax together, million, increased which quarterly quarter from $XXX Taken third the Stifel's totaled income of

growth continue and a and impressive company year-to-date on is and will growth our last third be term call, said trajectory. to results long illustrate quarter in the I quarter's our As Stifel

range guidance us clients, good we of and deployment us year but $X.X resulted XXXX our capital to grow updated quarter in that model diversified approach to also during environments. billion bad revenue full to acquisitions Last disciplined to have $X.X to be enabled market relevant more in a has made not and billion. business our Our only

annualized of guidance our and consecutive net and month represent would up middle revenue Our our year revenue XXth of last the record year. is in over nine essentially XX% from

Stifel XX% and execute return well I initiate the XXX generated Our can billion, first years been in very nearly and our improving $XX shares. consistently built the believe consistently over operating people. an margins analysts to environment, our to growth increase for perspective a to by dividend our a testament grow and highly We financial XX approximately comprised six integrate capital of this on nearly which XX% rate is approach firm margin note XXXX, the where overlooked and nine of income best enabled nearly XX gets from people, against all acquisitions, $XX repurchased We annualized our of but and business adjusted that and the disciplined has assets from time period million accomplished and would regardless are environment in interest tangible generate add consistently XXXX end positioned frankly talented zero from diversified on to focus of that returns. risk rates. results our approach a take enabled billion Since and is past through over a pretax on these us grow XXXX investors. we performance our something our of to and of reinvesting generate focusing months quite XX%. while business has We this equity in consistent over the of backdrop deployment, interest a the to I has net advisers,

Speaking am to from of partner I new acquisitions, good welcome pleased our Sparks. Vining

excited this of of October at step close business. this about expect We to and I'm end transaction strategic the the

income management, complementary depository this fixed are on institutional highly Vining Sparks institutions. on to focuses sheet to we underwriting providing accounting our fixed business franchise. adding brokerage, slide, a already income balance shown and strong services As portfolio

with assets. comes Our than analysis revenue with billion depository from greater clients nearly XX% that billion Stifel’s Sparks than Vining from X in while indicates in generated of depositories less is of X assets, XX% revenue

firms As the is United such, our as but cements we combination only complementary, highly the possession of institutions depository for investment Stifel’s bank believe not that leading States. two the in

exists profiles within Looking another a way revenue end at client only X% there combined clients the overlap a combination, base. of as complementary

also solid in banking believe KBW there exists opportunities M&A and through synergy Stifel correspondent though and debt We offerings Bank.

and our we on Global record Moving quarterly operating Wealth with Management. to and Again, starting segments revenue. posted year-to-date

Revenue interest a slide quarter and client drivers our as our equity color Management year net of continued Third of increased muted was billion, assets was year-on-year margin. the our second as assets. fee quarter provide billion, loan and our XXX, million, we both based driven income, measured XX next am growth I and the assets increase revenue by later revenue a both strength This quarter S&P in growth in in of XX% improvement recruiting our record little was over in interest client and the valuations approximately advance. totaled by the in based presentation. sequential basis third Despite in billion. improvement $XXX The of growth by and pleased more this point market up and highlights finished growth last during our XX% an of higher interest and growth the with which The bill the year-to-date majority $XXX assets increased assets approximately $XXX increased of client recruiting, in $X.X platform. with in valuations growth will net Asset third quarter earning in Jim activity fee buoyed quarter the XX%.

For experienced $XX up we XX XX total quarter million. a added including XX the advisers, trailing with advisers, month production

channel independent that robust remain recruiting furthermore, pipelines very our gaining expect is momentum. recruiting and channel that and I add adviser our to as traction Our begin to will success

posted our activity and business. Moving onto Institutional benefit revenue scale of second our we our to quarter Group. highest continue the the from We increased levels as

revenues net up $XXX from XX% while raising XXX%, of increased XX%. billion. Nine million, up Record revenue to up $X.X $XXX quarterly year. quarterly totaled Our revenue $XXX XX% were million of capital million prior over the nearly month posted was revenue which advisory

million, million. revenue declined $XXX trading to expected, while XX% As to trading $XXX year-to-date declined

of highest, year. the the XX.X%, was Institutional this pretax for second Our margin our only was second quarter trailing quarter which

nine leverage. first margin For as XXX points to pipeline pretax generate XX.X% substantial nearly was up and we growth continue operating drives the month was basis which

Institutional totaled record month our XX%, of revenue our nine quarter results $XXX up components Looking the $XXX while million posted Group, revenue X% up the at equities third business million, of year-on-year.

and Our million fixed business $XXX quarterly $XXX income of million. revenue revenue of year-to-date posted

raising Our trading businesses strength equity down businesses sequentially. on trading regarding quarterly the capital business in next the in segments to revenue With a quarterly fixed reflected income capital totaled offset respect decline XX% $XX million, slide on Banking. raising, our Investment revenue. discuss of and these focus by trading I’ll

volumes as of and I sequentially. market NYSE stated this X% the level As result NASDAQ lower earlier, on the declined was activity

to gains with attributed the transactions losses in warrants quarter. mark-to-market prior we Additionally Investment Banking incurred certain versus associated

record trading revenue equity million, the notably consecutive quarterly months, of $XX revenue nine corporates of totals For similar of primarily munis slide saw Diversified nine Year-to-date having revenue to amount. Investment strength just up $XXX record XX% Banking raising short market advisory both lower consecutive the million nearly Fixed X% was agency million of record. revenue Banking business, we overall years. was On increased million have second declines XX% from Financials, Technology. and income and trading advisory revenue was $XXX as down billion, our sequentially capital levels a first activity as U.S. Services as which The $X what XX% activity amounted million driven by XXXX. and $XXX $X.X fourth for to our up Investment our quarter, quarterly was

in results, essentially in Partners. industrials the While record we strong another placement change sequential strong expect we market barring gains the advisory substantial and for fund the quarter major verticals or our fourth of saw XXXX. Eaton healthcare, from business pipelines levels at quarter a of economy, generated also With all our the in and

healthcare, business Raising, of underwriting XX%. Capital Moving to balance this technology, our equity a in $XXX with business We from up and industrials. on million, saw revenue contributions financials posted

million sequentially. quarter up underwriting income posted in its X% fixed $XX consecutive second revenue, Our record business with

great as XXX Finance posted business Municipal another issues. Our lead managed quarter, we municipal

our year-on-year terms first XXX by transactions basis market share in increased market share. the For of of points number XX.X% nine to months

the strength business, business as our addition we to a markets number in strong for debt deals of the to finance of In capital our contributions we see public record quarter. completed continue

the Jim with another from activity capital Overall fourth and me our the robust turn slowed strong Marischen. solid over in our has levels activity business. I Our equity quarter quarter. call year. CFO, pipelines And income underwriting remains to let levels this with fixed that, earlier strong for raising expect the

Jim Marischen

Thanks good morning and Ron everyone.

is sequentially. Turning quarter income which the up to slide totaled net interest $XXX for XX, XX% million

growth by points. XXX driven at net fee loan our in aforementioned remained in assets, as finance increases our interest income business, wide fee our to basis margin primarily in due NII our finance as firm points, XXX X% The lending earning leverage stock leverage was well basis and and interest bank increase Our while increased to the a income activity. increased security NIM

In expectations, increase terms with more growth I’d episodic be balance our interest $XXX $XXX a similar XXX we fee sensitivity quarter income of we’ve sheet. a first quarter an activity a million million income estimated lower the million size some rates. of $XXX we we point asset the to on offset we see note increased of $XXX pretax of million updated levels as sheet. NIM to expect of balance income in the and result quarter by that based to that basis our the earnings range net as to third In of call fourth in and incremental opportunities generate also in our our our

first this our using reviving the the market and we same in assumptions. However, increase range given sheet of million billion forecast are balance deposit quarter, of $XXX million, the $XXX $X beta since to nearly to a the end

bank's prior more driven the our was Moving primarily growth the quarter and ended quarter, portfolios. channel. We up loan the investment in go was approximately slide, of billion, with million total on $XX.X from that into next to consumer I’ll loans detail the which by net $XXX on

we as residential continue our mortgage clients. increased see loans demand $XXX for wealth management by to Our sequentially, portfolio million from

loan increased loan Growth million. increased securities approximately drive portfolio by to recruiting balances. based continues be strong, these as Our in loans $XXX FA continues momentum to

fund commercial increases loans, expected nearly million in portfolio reduction Primarily by than C&I PPP in the due more loans. increased loans X% in a sequentially. $XXX Our as offset increase banking to

the of investment was to $XXX strong as which returns. the Moving sequential majority we sequentially, portfolio, by CLO increased continue see million portfolio to as vast these in grow question securities risk the our adjusted generating

was essentially loan $XXX,XXX approximately we in growth. to economic our of release the by to had modest reserves offset Turning reserve the tied as allowance, a projections improvement additional

the the the reiterate growth important composition total to to total As our points. portfolios, commercial and our commercial the at points the loan a between reserves excluding declined allowance basis loans of of XXX PPP the during look of level XX XX our that the allowance and inherent given points consumer portfolio basis was consumer quarter, to quarter loans. ratio it’s would and result At of reserve I release risk. to relative loans of levels basis end was

to see continue with to declining also to loans We credit four basis nonperforming nonperforming strong only metrics, assets points.

to and capital on Moving liquidity.

our of $XXX volatility ratios increased respectively. portfolio. in a the XX.X% preferred The of continued our of to trading Our the and result with operating XX% risk on base capital strength million increase leverage ratios and pandemic and and associated capital equity results impact our incremental in decreasing was

second We $XX.XX. repurchased of continued Year-to-date at shares current average price XXX,XXX shares back average by million shares million program quarter the nearly our XX.X approximately we at cost remaining repurchase authorization. buying $XX.XX in of with share our share an on an X.X repurchase

to our as financial continue about strong. good We our remains liquidity feel position

our available bank the billion of funding to the has $X to access In billion. in more than Suite sheet off-balance $X addition program,

expenses. On ratio increase lower XX%. of go next revenue In points basis continued expense third our The the was a compensation strong result improved through growth, discipline. slide XXX the our to year-on-year quarter pretax nearly and margin we the

prior basis year at ratio for from the was prior XXX comp-to-revenue down down points was Our quarter. points XXX XX.X% basis the and

months increase year $XXX entertainment above expenses. the our and million period quarter of to was In nine from XXXX. million prior net investment XX.X%, the year-to-date in points that the our from note comp is driven operating our XXXX, and quarter or XXX but Non-compensation conference, more represented our XX.X% totaled the $XX which first is I after ratio expenses The of per by transactions basis the increased $X.XX approximately For credit was this loss related tax totaled would adjustments than comparable provision banking expenses comp expense $XXX non-GAAP and revenue. travel down excluding million total share.

noted, primarily the rate at mainly the difference our at XX%. amortization. between call. came that mid-point GAAP related It deal GAAP and are last results based guidance we in non half effective stock previously during tax on intangible of The was of the and to second quarter include As for compensation expenses XXXX earnings the our gave

impact to We compensation. see benefit the the expect to anticipated lower the effective given tax rate move in stock based the fourth to quarter on related

stock I’ll call. of that back In guidance fourth with over terms It increase with to the any our that, fully be quarter additional the expect Ron. And the This share the was turn to last to Vining and will count count shares. fully Sparks attributable a diluted in XXX.X shares quarter's million average share share be by declined XXX,XXX issued for conjunction in with our shares. our largely transaction. is repurchases call roughly count, Absent assuming we on assumption line stable price, share diluted

Ron Kruszewski

an environment. per earnings eclipsed pretax Thanks far share revenue market not XXX the the nine Through Jim. XXXX our rate on than of outstanding has clearly year's year to up the ability so of and zero pace but your illustrate and business to capitalize by this the is despite last record full our power as been XX%, we're the first basis months, our on built has only type record than surpass we've our of points headwinds the environment. in results year our more more full already interest margin

both generate hired. we've the the and Our acquisitions types a direct these returns is result we've made people ability of of to

strategy Our that how are are good only to has Vining emphasize adding firm point accretive, at not a on businesses and let that fit, complementary acquisition but organization. are focused happy people again be Sparks adding to a cultural like this we me

to our are ways increased not ways Simply, on quality has we the Stifel. look and in built just seen have only that ago. strategy us the but is similar scale operating we've culture high the recruiting Our our strength the of attracted bankers, capitalize strategy enabling to years for could growth five and also advisers relevance to in and approach clients, while at for to acquisition many not to our we this of business environment individuals

As the well COVID-XX. as said, That's a I equities look positive low ongoing to continue the tax fundamentals inflation, market the benefit potential headwinds monetary are forward, impact there law potential of policies of number as of remain and remain changes, rates the regulatory current interest the reforms, as include for fiscal increased markets. that accommodative

However, over positioned capable change diversified that the variety understanding line business strong for generating as few remain years, future, that the well we conditions our operator, market of market and model questions. a past believe of in we’ve With can open I fully please for proved is results the conditions quickly.

Operator

Your Instructions] comes Chubak Research. the from first line [Operator Steven Wolfe of from question

line Your open. now is

Steven Chubak

and Ron, Hi! Jim. morning, Good good morning,

on Ron, pocket activity. So was call deal in about discussion last quarter's month of the XX air terms the

So see you it's certainly the announce Vining to Sparks nice deal.

expand appetite We some of I most sector the you position, and potential given a full for in starting you to excess deals valuations both speak verticals and peers are opportunities targets, you which organically. just was in could to see but for compelling see still the activity, just capital do to hoping strength do pretty your pick-up to additional and your in

Ron Kruszewski

accretive It Sparks the of deal to the do It’s deals we of adds additional with we've both, that complementary. you line over the Well, it’s is They to know know you firm great a transaction; like illustrative be fit. in a to I and done highly time. that think the our strong of our capabilities our look at. you we’d know Vining shareholders returns relevance kind cultural and lot expected to It’s and to space. to depository bring clients in the

hand that's think a that transaction So one I great on know. you

a how number share, be on you earnings On at give that's driven the in. we've is dilutive that accretive bit of are conundrum there's but by hand how you little our it and we just return asset to of look a of a know at as and had an equity the it transactions kind of pocket we other know you a per to look sense to lot to comes things, where and air will values and

potential ways; at that’s look high at in us. and bank are think and conclude that many growing double Most an for off on your the XX’s that’s other versus true and so returns dilute we a when We capital. true banks for So organically a in acquisitions, as we're acquisition We're valuation there's return we earning where today tangible. space better doing really the sectors on earning area that are organically. growing equity by XX% return just the today; return least on

XX answer the So answer the that expect giving I you to know that stay and we've years same. for is answer same been

Steven Chubak

Alright, same remarkably been have you're consistent excess Certainly about the there. in the of on and had how time. rate you some thinking messaging your at that's is and sensitivity helpful liquidity managing yes, Ron, your just I follow-up

XX% the $X of excess that all rate you believe how deposit change for just you balance you the deploying whether heap didn't volume your you last to given going bank. firm beta the today, some I looks what sheet off there's to deposit that sensitivity Just put liquidity cycle? I what position, are you the leverage firm you guys assumptions the have billion in we It at beta is growth of and you're your to the overall know better do today, thinking compare appetite accelerate does at growth. wanted assumption any you the tightening track. How banks to of top here have experienced I of up, the raised one given of that the strength do capital about And like

Ron Kruszewski

have assumptions. in a appropriately always about you talk in this to ability you but assets let so adjusted the believe knows want He terms to we consistently our risk Jim than with that that to both our do, minute relevance it’s and the capital. I’ll know beta terms that know more some returns. again But earnings, caveat of when the is I strategy levels environment one our while our But earning grow of know forward be communicating I basically going in our capital back and to going down, to that and of interest we're Yeah, deploy functions. our capital clients excess do things taking what means you we

we of lot have We in to opportunities assets. grow bank sweep organically can we deposits and earning interest a that the to have

what highly net just that model we that invest years, so a that it we're when two there here, levels. both wealth are from size as how know We interest to line can in in agree right earnings but to interest capital of Those, do loans income, council item way well, doing you invest you the can just and three can And we what we and sectors mortgages out and in net spa with our clients. over I one to the you see that's synergistic we income. drive clients, management. lot do that

been we’ve side and loan lending our been leverage we’ve capabilities institutional the our On building clients. to

of see this to So is growth lot be recycled into excess and capital of that a company. demand going right back the we so

Jim Marischen

weighted. was highlight and we And and of a a little assumption better deposit if the I’d XX% pick did back there, terms you was beta, to than to really also that, maybe that is back more deposit it our think up look something cycle, from that that end I in bit beta last

nearly dilution the just four you commentary expect been hikes impact account XQ, really stock buyback in up about the so or as to terms then And deployment; cycle. that first the based of some in capital to shares share count you back the know do on buying on comments announced from it, we've as on in to normal we from the know rate didn't well expected just recently Obviously talking additional for dilution. some last three see we for You of transaction. the increase compensation, had pick the offset

Steven Chubak

That’s color. both questions. you Thank for my very helpful taking

Ron Kruszewski

Sure. Have great a day!

Operator

of from from Your comes line the Securities. Ryan next Devin question JMP

is line open. Your now

Ron Kruszewski

Good morning Devin!

Devin Ryan

Ron. morning, well? you are as Good How and Jim

Ron Kruszewski

Good!

Devin Ryan

on kind financial – commentary, or I know independent your you team small of heard we like so that other. a one joining of headline seeing you that's an there. some employee channel? comments the broader the think advisor just and question side that – Should be as know it's your recruiting kind its recruiting kind a that I know saw going yesterday you nice doing of about kind momentum well to nice just today contractor what know so about for to you're incremental in bucket, budgeted is firm, on that's First Great! obviously the the addition but of of you're the kind of or entirely we you're

of think then about independent kind how just some more addition fragmentation that but we you I or the from considerations channel? it’s M&A side, feeling should And in in lot how given a are momentum So also also relative here? maybe the that employee the side opportunities different of to there. know about

Ron Kruszewski

and option and they pretty talked you you I channel you forward independent. need a to rather the an we and the employee start. it are sitting know dead from concluded going a that at some way I about interested simplest meetings joining that that of the have is to I about think need look advisers Look, that we at know that think on people it's ignored full in recruiting some to we're That the be independent Stifel advisory Jim this employee – side. been on We thought having side when with our you as recruiting But would are that Z we zero that simply with think rooms certainly and way recruiting conference Jim and point help look is as to overall and that – want I interested, actually might helps optionality in is much – I've it it. at to recruiting, channel be been and advisers in haven’t look

– I’m at record think look and I at to in see build just track and we look going So again that's getting look how businesses started. that channel. what the our you're independent

I back You're first adviser our right; ’XX. in first when we hired we team. remember just hired our

there, it build promise So does from you. can I

Devin Ryan

then a And Ron. just great. up Okay, follow

You bank did to how touch just you're little around more on but to around this, additional dig and up want opportunity I the want scale maybe thoughts bank just of some bit deposits your the the do management of today, kind the a size to you capital the or about there. thinking returns relative plus firm excess XX% overall generating you have excess and the appreciate wealth business a have and

to your of deploy and grow, incremental well. as customer it’s So it’s that base capital very attractive also kind and places in

are Stifel you it been be you’ve today? two bank relative could of growing opportunity. there’s the size because heading and bigger But the the maybe over you know it more year, to think next if franchise into alluded potential I you you the look So the out overall about faster how thinking than much to maybe years,

Ron Kruszewski

– billion and said of know $XXX you that, XX of Well, first undersized call and need you bank clients, bank well be know I’ll of that Stifel is I'm as first you maybe think I'm banks, it to total think large our over our we to and the the communicating your within albeit ability. answer business saying a have about large, I but question should about grow puttings client you the think I is AUM, way, the way institutional saying all this about $XX And for our of ability just, that, to set you know of own actually we the franchise. the firm I've in of about is this XX know don't time, When you think and that. this we’ll billion say

the the $XX to billion see billion what power I comes billion bank organically, When $XX of years because to about not you organization think know backwards you will $XX and a do this I look and that’s and I'll from at. take applying bank a to that's and prologue, from to look today through company forward, that start now, do that think don't we've gone why and okay, power three billion trying see I it $XX versus you would tell how it We’re company. acquisition, holding that you holding the growth when and you we’re

that. the you power see of numbers I think you'll do some occur that when

Devin Ryan

Yep.

you, there. Okay, Ron. it Thank terrific! I appreciate leave I’ll it.

Operator

line question Your Sachs. Alex comes from of next Goldman from the Blostein

Your line now is open.

Ron Kruszewski

Alex! morning Good

Alex Blostein

expect evolution changes business of assets. indication that net of that’s it next what there? growth seeing frankly see is Hey, I new little wanted over a Obviously [inaudible], morning the the in you disclosure into XX the in wealth Ron, that the to trends revenue, some good same in How the your seeing the is which good a the new help better evolve. you guys you for you kind sort us management consistent to revenue business of trended growth how curious But of put focus really business. organic years? call it kind morning know and in Maybe dig more evolve of sort on organic and could do organic the not is organic growth over it. few numbers probably Jim. recognizing the are you but and do growth How recruited your months? around given I last

Ron Kruszewski

of businesses range asset of Mark, at numbers recruiting is growth the net know No, and – look it. see is assets. the don't also when done talk you to organic building lifeblood you through these where lot Those are X% I assets a ours in you net know the new I franchise. new I think X% we the about and

you're range So and adding said in not I organic assets tend and of new believe we low focus the just that across right, the growth on that to that's and environment. that because I and the muted industry at that. clients But looking our rate – that people know is brining obviously believe, I

hear that's certainly how never calculate answering don't at with feel I’m So, we people I in that know would your but the it. but line look growth I say actually how I I that I see like about. if can that. that's question, –

Alex Blostein

point dynamic to kind if freights kind organic is that new growth translates your to X% you about of that aside, asset sort of know are look but I growth, well guess fair statement. revenue like recruited reasonably interchangeable, net organic, those X% of so, read I organic, of a Stifel’s Right kind

Ron Kruszewski

I think it Yeah, is.

Alex Blostein

you earnings in then quick a ‘XX Vining help know sorry this I And closes. Great! calls profitability, couple contribution don’t with revenue or Sparks, the of can deal Perfect! once us there you heard my if Can expense expect conflicting morning. that? follow-up,

Ron Kruszewski

No.

Alex Blostein

[ph]. Thankfully

Ron Kruszewski

been expect accretive. what said over $XXX and that that so No, like It’s size; some million. give about the I’ll I run here, last they averaged accretive. revenues that. I say can look years to over revenues, our it that's I that They’ve, we That's we said years, think think we on somewhere better it I’d what – but about the you be all expect about last models I you yes, to in mean it’s the XX few

Alex Blostein

Alright, you. we'll it. Thank take

Ron Kruszewski

Alright.

Operator

from comes question the next of line Chris Compass Point. Your from Allen

is open. line Your now

Ron Kruszewski

Chris! morning Good

Chris Allen

morning. kind the then, trading. And side? rate specifically, more Good I how Maybe on we of wondering equity on up a far actual could fourth color quarter? warrants, you in give impact bit little the can so get shaping the environment the what a of so was the was if run a

Ron Kruszewski

this because Let looking last part me was morning. take the I that just first, at

quarter. started have in businesses actually strong the trading equity Our

the I would think the a in didn’t was, a it look a I'll quarter. in that I back and number loss what in warrant, us quarter case. substantially if think the second third gain between you the We you anyway say the for as difference that declined, general it to that market give in And years, know what it's seasonal over alright. that's what and explain value general, a declines was the we the thing

explained equity and the much delta look at I've Maybe understand by market for mark-to-market look to So and large the that is comparable not you things now, speaking doing some the the the more as than large we not I were goes are thing, those doing in those down and concluded what that when firms, brokerage trading I there and know were to are other warrants. at the think. tried pretty prime numbers, to delta derivatives they that there’s – things as numbers and numbers, you equity firms things have on we're that would I to

We the the will question volume than average majority is daily of average the volumes, mark-to-market generally decline on that more correlated in daily be is that, was decline warrants. sequential equity the vast to answer and of and so the your our delta side to

Chris Allen

environment. it. any thick in just [ph] of Got And terms the color

Ron Kruszewski

it's say summer, which the I Yes, that improving seasonal. is would from against also

strong fourth expect I So would a quarter.

nice volumes Of are we because closing a a thick deal you that see to a are here, course deal. in our nice is going uptick

going in increase to to the factor you're for Vining So Sparks. have

Chris Allen

Thanks guys. it. Got

Operator

no further are There questions.

Ron Kruszewski

in appreciate questions our forward to Okay very We from I and operator, to January. that. reporting and good community look you analysts

our our As returns our outlook excellent quarter to continue to forward remains on the late, probably that both fourth look late XXXX. in we growth of constructive, accommodative and to deliver I our positively and and full pipeline, reporting I very market to shareholders. said, conditions XXXX the believe me year And leads January will

have day! a thank that, and attention everyone great time you. with for So your Thank you and

Operator

participation. This concludes conference you today's Thank for your call.

You may now disconnect.

Stifel Financial (SF) 27 Oct 212021 Q3 Earnings call transcript