Stifel Reports Second Quarter 2024 Results
Stifel Financial Corp. (NYSE: SF) reported strong Q2 2024 results, with net revenues of $1.2 billion, up from $1.1 billion a year ago. Net income available to common shareholders rose to $156.0 million ($1.41 per diluted share), compared to $125.0 million ($1.10 per diluted share) in Q2 2023. Non-GAAP net income was $176.6 million ($1.60 per diluted share).
Highlights include:
- Record asset management revenues, up 19% year-over-year
- Advisory revenues increased 50% year-over-year
- Capital raising revenues up 29% year-over-year
- Record client assets of $474.1 billion, up 14% year-over-year
- Non-GAAP pre-tax margin of 20.6%
- Annualized return on tangible common equity (ROTCE) of 22%
The company's strong performance was attributed to improved market conditions and the benefits of balanced businesses across segments.
Stifel Financial Corp. (NYSE: SF) ha riportato risultati solidi per il secondo trimestre 2024, con ricavi netti di 1,2 miliardi di dollari, in aumento rispetto a 1,1 miliardi dell'anno precedente. Il reddito netto disponibile per gli azionisti comuni è salito a 156,0 milioni di dollari (1,41 dollari per azione diluita), rispetto a 125,0 milioni di dollari (1,10 dollari per azione diluita) nel secondo trimestre 2023. Il reddito netto non-GAAP è stato di 176,6 milioni di dollari (1,60 dollari per azione diluita).
Tra i punti salienti ci sono:
- Entrate record dalla gestione degli asset, in aumento del 19% rispetto all'anno precedente
- Entrate da consulenza aumentate del 50% rispetto all'anno precedente
- Entrate da raccolta fondi aumentate del 29% rispetto all'anno precedente
- Asset dei clienti record di 474,1 miliardi di dollari, in aumento del 14% rispetto all'anno precedente
- Margine ante imposte non-GAAP del 20,6%
- Rendimento annualizzato sul capitale tangibile comune (ROTCE) del 22%
La forte performance dell'azienda è stata attribuita a condizioni di mercato migliorate e ai vantaggi di attività equilibrate tra i vari segmenti.
Stifel Financial Corp. (NYSE: SF) informó resultados sólidos para el segundo trimestre de 2024, con ingresos netos de 1.2 mil millones de dólares, un aumento desde 1.1 mil millones del año pasado. El ingreso neto disponible para los accionistas comunes aumentó a 156.0 millones de dólares (1.41 dólares por acción diluida), en comparación con 125.0 millones de dólares (1.10 dólares por acción diluida) en el segundo trimestre de 2023. El ingreso neto no GAAP fue de 176.6 millones de dólares (1.60 dólares por acción diluida).
Los aspectos destacados incluyen:
- Ingresos récord en la gestión de activos, con un aumento del 19% interanual
- Ingresos por asesoría aumentaron un 50% interanual
- Los ingresos por recaudación de capital aumentaron un 29% interanual
- Activos de clientes récord de 474.1 mil millones de dólares, un aumento del 14% interanual
- Margen previo a impuestos no GAAP del 20.6%
- Retorno anualizado sobre el capital tangible común (ROTCE) del 22%
El sólido desempeño de la compañía se atribuyó a las mejores condiciones del mercado y los beneficios de negocios equilibrados en los distintos segmentos.
Stifel Financial Corp. (NYSE: SF)는 2024년 2분기 실적이 강력하다고 보고했습니다. 순수익은 12억 달러로 지난해의 11억 달러에서 증가했습니다. 보통주 주주에게 배분된 순이익은 1억 5,600만 달러(희석주당 1.41달러)로 증가했으며, 이는 2023년 2분기의 1억 2,500만 달러(희석주당 1.10달러)와 비교됩니다. 비-GAAP 순이익은 1억 7,660만 달러(희석주당 1.60달러)였습니다.
주요 하이라이트는 다음과 같습니다:
- 자산 관리 수익이 연간 19% 증가하여 기록을 세움
- 자문 수익이 연간 50% 증가
- 자본 조달 수익이 연간 29% 증가
- 고객 자산이 4,741억 달러로 연간 14% 증가
- 비-GAAP 세전 마진이 20.6%
- 유형 자본에 대한 연간 수익률(ROTCE)이 22%
회사의 강력한 성과는 개선된 시장 상황과 부문 간 균형 잡힌 비즈니스의 이점 덕분으로 여겨집니다.
Stifel Financial Corp. (NYSE: SF) a annoncé des résultats solides pour le deuxième trimestre 2024, avec des revenus nets de 1,2 milliard de dollars, en hausse par rapport à 1,1 milliard de dollars l'année précédente. Le revenu net disponible pour les actionnaires ordinaires a augmenté à 156,0 millions de dollars (1,41 dollar par action diluée), contre 125,0 millions de dollars (1,10 dollar par action diluée) au deuxième trimestre 2023. Le revenu net non-GAAP était de 176,6 millions de dollars (1,60 dollar par action diluée).
Les faits saillants incluent :
- Des revenus record en gestion d'actifs, en hausse de 19 % d'une année sur l'autre
- Les revenus de conseil ont augmenté de 50 % d'une année sur l'autre
- Les revenus de levée de fonds ont augmenté de 29 % d'une année sur l'autre
- Des actifs clients record de 474,1 milliards de dollars, en hausse de 14 % d'une année sur l'autre
- Une marge bénéficiaire avant impôts non-GAAP de 20,6 %
- Un rendement annualisé sur les capitaux propres tangibles (ROTCE) de 22 %
La solide performance de l'entreprise a été attribuée à des conditions de marché améliorées et aux avantages d'une activité équilibrée entre les segments.
Die Stifel Financial Corp. (NYSE: SF) berichtete über starke Ergebnisse im 2. Quartal 2024 mit Nettoumsätzen von 1,2 Milliarden US-Dollar, was einem Anstieg von 1,1 Milliarden US-Dollar im Vorjahr entspricht. Der den Stammaktionären zur Verfügung stehende Nettogewinn stieg auf 156,0 Millionen US-Dollar (1,41 US-Dollar pro verwässerter Aktie), verglichen mit 125,0 Millionen US-Dollar (1,10 US-Dollar pro verwässerter Aktie) im 2. Quartal 2023. Der Non-GAAP-Nettogewinn betrug 176,6 Millionen US-Dollar (1,60 US-Dollar pro verwässerter Aktie).
Zu den Highlights gehören:
- Rekordeinnahmen im Asset-Management, ein Plus von 19 % im Jahresvergleich
- Beratungsumsätze stiegen um 50 % im Jahresvergleich
- Kapitaleinnahmen stiegen um 29 % im Jahresvergleich
- Rekordkundenvermögen von 474,1 Milliarden US-Dollar, ein Anstieg von 14 % im Jahresvergleich
- Non-GAAP-Betriebsgewinnmarge von 20,6 %
- Jahresrendite auf das tangible Eigenkapital (ROTCE) von 22 %
Die starke Leistung des Unternehmens wurde den verbesserten Marktbedingungen und den Vorteilen eines ausgewogenen Geschäfts über die Segmente hinweg zugeschrieben.
- Net revenues increased to $1.2 billion, the second-best quarter in company history
- Net income available to common shareholders rose to $156.0 million, up from $125.0 million year-over-year
- Non-GAAP EPS increased to $1.60 from $1.20 year-over-year
- Record asset management revenues, up 19% year-over-year
- Advisory revenues increased 50% year-over-year
- Capital raising revenues up 29% year-over-year
- Record client assets of $474.1 billion, up 14% year-over-year
- Non-GAAP pre-tax margin improved to 20.6% from 18.7% year-over-year
- Annualized return on tangible common equity (ROTCE) increased to 22% from 16.8% year-over-year
- Global Wealth Management net interest income decreased 15% year-over-year
- Global Wealth Management pre-tax net income slightly decreased to $299.2 million from $299.9 million year-over-year
Insights
Stifel Financial Corp.'s second quarter results for 2024 showcase a strong financial performance that is noteworthy for investors. The net revenues of $1.2 billion and net income of $156.0 million represent significant year-on-year growth. This revenue represents the second highest quarterly net revenue in the company's history, indicating robust market conditions and effective business strategies.
In particular, the 19% increase in asset management revenues and the 50% increase in advisory revenues are standout figures. These segments have shown considerable growth, reflecting improved client activity and higher asset values. The continued recruitment of experienced financial advisors further solidifies their position in the market.
The company maintained a Non-GAAP pre-tax margin of 20.6%, emphasizing their focus on expense discipline. This is a positive indicator for future profitability. Additionally, the annualized return on tangible common equity (ROTCE) of 22% demonstrates efficient use of equity capital, which is a favorable signal for potential and current investors.
Overall, Stifel's strong performance across multiple revenue streams and their ability to manage costs effectively suggest a positive outlook for the upcoming quarters.
Stifel's second quarter results highlight the firm's adaptability and strength in different segments of the financial market. The record client assets of $474.1 billion, up 14% over the previous year, indicate strong client trust and effective asset management strategies. This growth is significant as it suggests that clients are increasingly relying on Stifel for their financial needs.
The company's investment banking segment also experienced notable growth with capital raising revenues up 29% and advisory revenues up 50% year-on-year. This is reflective of increased market activity and successful transaction completions. The improved market conditions appear to have played a substantial role in Stifel’s strong performance this quarter.
However, the increase in compensation expense as a percent of net revenues to 49% could be a point of concern. While higher compensable revenues justify this increase, maintaining a balance between revenue growth and expense management will be critical for sustained profitability.
In summary, Stifel's quarterly results depict a well-rounded performance with strong growth in client assets and advisory services, positioning them favorably for future market opportunities.
Stifel's reporting on its technological investments and digital transformation initiatives, while not explicitly detailed in this report, can be inferred from their overall performance metrics. The ability to handle and increase client assets to $474.1 billion and a 19% increase in asset management revenues likely involves advanced financial technologies and digital platforms to manage such volumes efficiently.
The recruitment of 42 financial advisors suggests that Stifel is integrating technological tools to support their advisors in managing client relationships and portfolios. Advanced data analytics, CRM systems and automated advisory solutions could be contributing to the increased productivity and effectiveness of their financial advisors.
Looking forward, Stifel's continued investment in technology infrastructure will be important for maintaining their competitive edge. As they expand their client base and assets under management, their ability to leverage technology for efficient operations and enhanced client services will be a key factor in sustaining their growth trajectory.
ST. LOUIS, July 24, 2024 (GLOBE NEWSWIRE) -- Stifel Financial Corp. (NYSE: SF) today reported net revenues of
Ronald J. Kruszewski, Chairman and Chief Executive Officer, said “Stifel generated our second highest quarterly net revenue in company history, as each of our operating segments generated solid year-on-year gains. Stifel’s strong results reflect improved market conditions and illustrate the benefits of our balanced businesses and inherent operating leverage, particularly in our Institutional Group. Given current market trends, we believe that Stifel is well positioned for a strong second half of 2024.”
Highlights
- The Company reported net revenues of
$1.2 billion , the second best quarter in its history, driven by higher investment banking revenues, transactional revenues, and asset management revenues. - Non-GAAP net income available to common shareholders of
$1.60 per diluted common share. - Record asset management revenues, up
19% over the year-ago quarter. - Advisory revenues increased
50% over the year-ago quarter. - Capital raising revenues increased
29% over the year-ago quarter. - Record client assets of
$474.1 billion , up14% over the year-ago quarter. - Recruited 42 financial advisors during the quarter, including 13 experienced employee advisors and 1 experienced independent advisor.
- Non-GAAP pre-tax margin of
20.6% as the Company maintained its focus on expense discipline, while continuing to invest in the business. - Annualized return on tangible common equity (ROTCE) (5) of
22% . - Tangible book value per common share (7) of
$32.00 , up4% from prior year.
| Financial Summary (Unaudited) | ||||||||||||
| (000s) | 2Q 2024 | 2Q 2023 | 6m 2024 | 6m 2023 | ||||||||
| GAAP Financial Highlights: | ||||||||||||
| Net revenues | ||||||||||||
| Net income(1) | ||||||||||||
| Diluted EPS(1) | ||||||||||||
| Comp. ratio | ||||||||||||
| Non-comp. ratio | ||||||||||||
| Pre-tax margin | ||||||||||||
| Non-GAAP Financial Highlights: | ||||||||||||
| Net revenues | ||||||||||||
| Net income(1)(2) | ||||||||||||
| Diluted EPS(1) (2) | ||||||||||||
| Comp. ratio(2) | ||||||||||||
| Non-comp. ratio(2) | ||||||||||||
| Pre-tax margin(3) | ||||||||||||
| ROCE(4) | ||||||||||||
| ROTCE(5) | ||||||||||||
| Global Wealth Management (assets and loans in millions) | ||||||||||||
| Net revenues | ||||||||||||
| Pre-tax net income | ||||||||||||
| Total client assets | ||||||||||||
| Fee-based client assets | ||||||||||||
| Bank loans(6) | ||||||||||||
| Institutional Group | ||||||||||||
| Net revenues | ||||||||||||
| Equity | ||||||||||||
| Fixed Income | ||||||||||||
| Pre-tax net income/ (loss) | ( | ) | ||||||||||
Global Wealth Management
Global Wealth Management reported record net revenues of
Highlights
- Ranked No. 1 in Overall Employee Advisor Satisfaction for the second straight year.
- Recruited 42 financial advisors during the quarter, including 13 experienced employee advisors, and 1 experienced independent advisor, with total trailing 12 month production of
$12 million . - Client assets of
$474.1 billion , up14% over the year-ago quarter. - Fee-based client assets of
$179.7 billion , up16% over the year-ago quarter.
Net revenues increased
- Transactional revenues increased
12% over the year-ago quarter reflecting an increase in client activity. - Asset management revenues increased
19% over the year-ago quarter reflecting higher asset values. - Net interest income decreased
15% from the year-ago quarter driven by changes in deposit mix, partially offset by higher interest rates.
Total Expenses:
- Compensation expense as a percent of net revenues increased to
49.0% primarily as a result of higher compensable revenues. - Provision for credit losses decreased from the year-ago quarter as a result of reserve reductions in certain asset classes driven by an improved macroeconomic environment, partially offset by growth in the loan portfolio.
- Non-compensation operating expenses as a percent of net revenues remained consistent with the year-ago quarter.
| Summary Results of Operations | |||||||
| (000s) | 2Q 2024 | 2Q 2023 | |||||
| Net revenues | $801,135 | $758,190 | |||||
| Transactional revenues | 177,308 | 157,958 | |||||
| Asset management | 380,737 | 320,238 | |||||
| Net interest income | 236,281 | 277,345 | |||||
| Investment banking | 5,780 | 4,065 | |||||
| Other income | 1,029 | (1,416 | ) | ||||
| Total expenses | $501,962 | $458,286 | |||||
| Compensation expense | 392,941 | 354,086 | |||||
| Provision for credit losses | 2,954 | 7,824 | |||||
| Non-comp. opex | 106,067 | 96,376 | |||||
| Pre-tax net income | $299,173 | $299,904 | |||||
| Compensation ratio | |||||||
| Non-compensation ratio | |||||||
| Pre-tax margin | 37.3% | 39.6% | |||||
Institutional Group
Institutional Group reported net revenues of
Highlights
Investment banking revenues increased
- Advisory revenues increased
50% from the year-ago quarter driven by higher levels of completed advisory transactions. - Fixed income capital raising revenues increased
8% over the year-ago quarter primarily driven by higher bond issuances. - Equity capital raising revenues increased
59% over the year-ago quarter driven by higher volumes.
Fixed income transactional revenues increased
- Fixed income transactional revenues increased from the year-ago quarter driven by improved market conditions and realized trading gains.
Equity transactional revenues increased
- Equity transactional revenues increased from the year-ago quarter primarily driven by an increase in equities trading commissions.
Total Expenses:
- Compensation expense as a percent of net revenues decreased to
61.2% primarily as a result of higher revenues. - Non-compensation operating expenses as a percent of net revenues decreased to
26.3% primarily as a result of revenue growth and expense discipline.
| Summary Results of Operations | |||||||
| (000s) | 2Q 2024 | 2Q 2023 | |||||
| Net revenues | $390,721 | $277,524 | |||||
| Investment banking | 227,501 | 162,761 | |||||
| Advisory | 131,411 | 87,875 | |||||
| Fixed income capital raising | 48,143 | 44,777 | |||||
| Equity capital raising | 47,947 | 30,109 | |||||
| Fixed income transactional | 106,685 | 67,508 | |||||
| Equity transactional | 52,907 | 45,592 | |||||
| Other | 3,628 | 1,663 | |||||
| Total expenses | $341,908 | $289,117 | |||||
| Compensation expense | 239,036 | 194,158 | |||||
| Non-comp. opex. | 102,872 | 94,959 | |||||
| Pre-tax net income/(loss) | $48,813 | ($11,593) | |||||
| Compensation ratio | |||||||
| Non-compensation ratio | |||||||
| Pre-tax margin | 12.5% | (4.2%) | |||||
Other Matters
Highlights
- On July 18, 2024, the Company’s
4.25% Senior Notes matured resulting in the retirement of the$500.0 million outstanding balance. - The Company repurchased
$17.6 million of its outstanding common stock during the second quarter. - Weighted average diluted shares outstanding decreased primarily as a result of share repurchases. The Company has repurchased 5.3 million shares under its share repurchase program since the second quarter of 2023.
- The Board of Directors declared a
$0.42 quarterly dividend per share payable on June 17, 2024 to common shareholders of record on June 3, 2024. - The Board of Directors declared a quarterly dividend on the outstanding shares of the Company’s preferred stock payable on June 17, 2024 to shareholders of record on June 3, 2024.
| 2Q 2024 | 2Q 2023 | |||||
| Common stock repurchases | ||||||
| Repurchases (000s) | ||||||
| Number of shares (000s) | 229 | 1,492 | ||||
| Average price | ||||||
| Period end shares (000s) | 102,518 | 104,889 | ||||
| Weighted average diluted shares outstanding (000s) | 110,285 | 113,864 | ||||
| Effective tax rate | 27.1% | 25.9% | ||||
| Stifel Financial Corp. (8) | ||||||
| Tier 1 common capital ratio | ||||||
| Tier 1 risk based capital ratio | ||||||
| Tier 1 leverage capital ratio | ||||||
| Tier 1 capital (MM) | ||||||
| Risk weighted assets (MM) | ||||||
| Average assets (MM) | ||||||
| Quarter end assets (MM) | ||||||
| Agency | Rating | Outlook | ||||
| Fitch Ratings | BBB+ | Stable | ||||
| S&P Global Ratings | BBB | Stable | ||||
Conference Call Information
Stifel Financial Corp. will host its second quarter 2024 financial results conference call on Wednesday, July 24, 2024, at 9:30 a.m. Eastern Time. The conference call may include forward-looking statements.
All interested parties are invited to listen to Stifel’s Chairman and CEO, Ronald J. Kruszewski, by dialing (866) 409-1555 and referencing conference ID 7408307. A live audio webcast of the call, as well as a presentation highlighting the Company’s results, will be available through the Company’s web site, www.stifel.com. For those who cannot listen to the live broadcast, a replay of the broadcast will be available through the above-referenced web site beginning approximately one hour following the completion of the call.
Company Information
Stifel Financial Corp. (NYSE: SF) is a financial services holding company headquartered in St. Louis, Missouri, that conducts its banking, securities, and financial services business through several wholly owned subsidiaries. Stifel’s broker-dealer clients are served in the United States through Stifel, Nicolaus & Company, Incorporated, including its Eaton Partners and Miller Buckfire business divisions; Keefe, Bruyette & Woods, Inc.; and Stifel Independent Advisors, LLC. The Company’s broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Bank and Stifel Bank & Trust offer a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. and Stifel Trust Company Delaware, N.A. offer trust and related services. To learn more about Stifel, please visit the Company’s website at www.stifel.com. For global disclosures, please visit www.stifel.com/investor-relations/press-releases.
A financial summary follows. Financial, statistical and business-related information, as well as information regarding business and segment trends, is included in the financial supplement. Both the earnings release and the financial supplement are available online in the Investor Relations section at www.stifel.com/investor-relations.
The information provided herein and in the financial supplement, including information provided on the Company’s earnings conference calls, may include certain non-GAAP financial measures. The definition of such measures or reconciliation of such measures to the comparable U.S. GAAP figures are included in this earnings release and the financial supplement, both of which are available online in the Investor Relations section at www.stifel.com/investor-relations.
Cautionary Note Regarding Forward-Looking Statements
This earnings release contains certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this earnings release not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements in this earnings release are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among other things, the following possibilities: the ability to successfully integrate acquired companies or the branch offices and financial advisors; a material adverse change in financial condition; the risk of borrower, depositor, and other customer attrition; a change in general business and economic conditions; changes in the interest rate environment, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in legislation and regulation; other economic, competitive, governmental, regulatory, geopolitical, and technological factors affecting the companies’ operations, pricing, and services; and other risk factors referred to from time to time in filings made by Stifel Financial Corp. with the Securities and Exchange Commission. For information about the risks and important factors that could affect the Company’s future results, financial condition and liquidity, see “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Forward-looking statements speak only as to the date they are made. The Company 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.
| Summary Results of Operations (Unaudited) | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| (000s, except per share amounts) | 6/30/2024 | 6/30/2023 | % Change | 3/31/2024 | % Change | 6/30/2024 | 6/30/2023 | % Change | |||||||||
| Revenues: | |||||||||||||||||
| Commissions | $183,317 | 10.9 | (1.2 | ) | $368,793 | 10.1 | |||||||||||
| Principal transactions | 153,574 | 105,700 | 45.3 | 139,014 | 10.5 | 292,588 | 221,222 | 32.3 | |||||||||
| Investment banking | 233,281 | 166,825 | 39.8 | 213,949 | 9.0 | 447,230 | 378,704 | 18.1 | |||||||||
| Asset management | 380,757 | 320,264 | 18.9 | 367,476 | 3.6 | 748,233 | 635,833 | 17.7 | |||||||||
| Other income | 16,180 | 894 | nm | 4,950 | 226.9 | 21,130 | (1,399 | ) | nm | ||||||||
| Operating revenues | 967,109 | 759,041 | 27.4 | 910,865 | 6.2 | 1,877,974 | 1,569,268 | 19.7 | |||||||||
| Interest revenue | 498,152 | 482,770 | 3.2 | 506,828 | (1.7 | ) | 1,004,980 | 934,334 | 7.6 | ||||||||
| Total revenues | 1,465,261 | 1,241,811 | 18.0 | 1,417,693 | 3.4 | 2,882,954 | 2,503,602 | 15.2 | |||||||||
| Interest expense | 247,329 | 191,090 | 29.4 | 254,655 | (2.9 | ) | 501,984 | 346,088 | 45.0 | ||||||||
| Net revenues | 1,217,932 | 1,050,721 | 15.9 | 1,163,038 | 4.7 | 2,380,970 | 2,157,514 | 10.4 | |||||||||
| Non-interest expenses: | |||||||||||||||||
| Compensation and benefits | 722,719 | 615,667 | 17.4 | 679,695 | 6.3 | 1,402,414 | 1,266,857 | 10.7 | |||||||||
| Non-compensation operating expenses | 268,319 | 253,669 | 5.8 | 264,652 | 1.4 | 532,971 | 499,389 | 6.7 | |||||||||
| Total non-interest expenses | 991,038 | 869,336 | 14.0 | 944,347 | 4.9 | 1,935,385 | 1,766,246 | 9.6 | |||||||||
| Income before income taxes | 226,894 | 181,385 | 25.1 | 218,691 | 3.8 | 445,585 | 391,268 | 13.9 | |||||||||
| Provision for income taxes | 61,600 | 47,033 | 31.0 | 55,116 | 11.8 | 116,716 | 99,377 | 17.4 | |||||||||
| Net income | 165,294 | 134,352 | 23.0 | 163,575 | 1.1 | 328,869 | 291,891 | 12.7 | |||||||||
| Preferred dividends | 9,321 | 9,320 | 0.0 | 9,320 | 0.0 | 18,641 | 18,640 | 0.0 | |||||||||
| Net income available to common shareholders | $155,973 | 24.7 | 1.1 | $310,228 | 13.5 | ||||||||||||
| Earnings per common share: | |||||||||||||||||
| Basic | $1.50 | 29.3 | 1.4 | $2.98 | 18.3 | ||||||||||||
| Diluted | $1.41 | 28.2 | 0.7 | $2.82 | 18.5 | ||||||||||||
| Cash dividends declared per common share | $0.42 | 16.7 | 0.0 | $0.84 | 16.7 | ||||||||||||
| Weighted average number of common shares outstanding: | |||||||||||||||||
| Basic | 104,150 | 107,944 | (3.5 | ) | 104,275 | (0.1 | ) | 104,217 | 108,360 | (3.8 | ) | ||||||
| Diluted | 110,285 | 113,864 | (3.1 | ) | 109,985 | 0.3 | 110,156 | 114,658 | (3.9 | ) | |||||||
| Non-GAAP Financial Measures(9) | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| (000s, except per share amounts) | 6/30/2024 | 6/30/2023 | 6/30/2024 | 6/30/2023 | ||||||||
| GAAP net income | $165,294 | $328,869 | ||||||||||
| Preferred dividend | 9,321 | 9,320 | 18,641 | 18,640 | ||||||||
| Net income available to common shareholders | 155,973 | 125,032 | 310,228 | 273,251 | ||||||||
| Non-GAAP adjustments: | ||||||||||||
| Merger-related(10) | 13,821 | 15,144 | 25,975 | 32,530 | ||||||||
| Restructuring and severance(11) | 9,961 | — | 9,961 | — | ||||||||
| Provision for income taxes(12) | (3,185 | ) | (3,920 | ) | (6,248 | ) | (8,257 | ) | ||||
| Total non-GAAP adjustments | 20,597 | 11,224 | 29,688 | 24,273 | ||||||||
| Non-GAAP net income available to common shareholders | $176,570 | $339,916 | ||||||||||
| Weighted average diluted shares outstanding | 110,285 | 113,864 | 110,156 | 114,658 | ||||||||
| GAAP earnings per diluted common share | $1.50 | $2.98 | ||||||||||
| Non-GAAP adjustments | 0.19 | 0.10 | 0.27 | 0.21 | ||||||||
| Non-GAAP earnings per diluted common share | $1.69 | $3.25 | ||||||||||
| GAAP earnings per diluted common share available to common shareholders | $1.41 | $2.82 | ||||||||||
| Non-GAAP adjustments | 0.19 | 0.10 | 0.27 | 0.21 | ||||||||
| Non-GAAP earnings per diluted common share available to common shareholders | $1.60 | $3.09 | ||||||||||
| GAAP to Non-GAAP Reconciliation (9) | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| (000s) | 6/30/2024 | 6/30/2023 | 6/30/2024 | 6/30/2023 | ||||||||
| GAAP compensation and benefits | ||||||||||||
| As a percentage of net revenues | ||||||||||||
| Non-GAAP adjustments: | ||||||||||||
| Merger-related (10) | (5,764 | ) | (6,523 | ) | (11,297 | ) | (15,776 | ) | ||||
| Restructuring and severance (11) | (9,961 | ) | — | (9,961 | ) | — | ||||||
| Total non-GAAP adjustments | (15,725 | ) | (6,523 | ) | (21,258 | ) | (15,776 | ) | ||||
| Non-GAAP compensation and benefits | ||||||||||||
| As a percentage of non-GAAP net revenues | ||||||||||||
| GAAP non-compensation expenses | ||||||||||||
| As a percentage of net revenues | ||||||||||||
| Non-GAAP adjustments: | ||||||||||||
| Merger-related (10) | (8,048 | ) | (8,621 | ) | (14,669 | ) | (16,757 | ) | ||||
| Non-GAAP non-compensation expenses | ||||||||||||
| As a percentage of non-GAAP net revenues | ||||||||||||
| Total adjustments | $23,782 | $15,144 | $35,936 | $32,530 | ||||||||
| Footnotes | |
| (1) | Represents available to common shareholders. |
| (2) | Reconciliations of the Company’s GAAP results to these non-GAAP measures are discussed within and under “Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliation.” |
| (3) | Non-GAAP pre-tax margin is calculated by adding total non-GAAP adjustments and dividing it by non-GAAP net revenues. See “Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliation.” |
| (4) | Return on average common equity (“ROCE”) is calculated by dividing annualized net income applicable to common shareholders by average common shareholders’ equity or, in the case of non-GAAP ROCE, calculated by dividing non-GAAP net income applicable to commons shareholders by average common shareholders’ equity. |
| (5) | Return on average tangible common equity (“ROTCE”) is calculated by dividing annualized net income applicable to common shareholders by average tangible shareholders’ equity or, in the case of non-GAAP ROTCE, calculated by dividing non-GAAP net income applicable to common shareholders by average tangible common equity. Tangible common equity, also a non-GAAP financial measure, equals total common shareholders’ equity less goodwill and identifiable intangible assets and the deferred taxes on goodwill and intangible assets. Average deferred taxes on goodwill and intangible assets was |
| (6) | Includes loans held for sale. |
| (7) | Tangible book value per common share represents shareholders’ equity (excluding preferred stock) divided by period end common shares outstanding. Tangible common shareholders’ equity equals total common shareholders’ equity less goodwill and identifiable intangible assets and the deferred taxes on goodwill and intangible assets. |
| (8) | Capital ratios are estimates at time of the Company’s earnings release, July 24, 2024. |
| (9) | The Company prepares its Consolidated Financial Statements using accounting principles generally accepted in the United States (U.S. GAAP). The Company may disclose certain “non-GAAP financial measures” in the course of its earnings releases, earnings conference calls, financial presentations and otherwise. The Securities and Exchange Commission defines a “non-GAAP financial measure” as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments that effectively exclude, or include, amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. Non-GAAP financial measures disclosed by the Company are provided as additional information to analysts, investors and other stakeholders in order to provide them with greater transparency about, or an alternative method for assessing the Company’s financial condition or operating results. These measures are not in accordance with, or a substitute for U.S. GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever the Company refers to a non-GAAP financial measure, it will also define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the non-GAAP financial measure it references and such comparable U.S. GAAP financial measure. |
| (10) | Primarily related to charges attributable to integration-related activities, signing bonuses, amortization of restricted stock awards, debentures, and promissory notes issued as retention, additional earn-out expense, and amortization of intangible assets acquired. These costs were directly related to acquisitions of certain businesses and are not representative of the costs of running the Company’s on-going business. |
| (11) | The Company recorded severance costs in the second quarter of 2024 associated with workforce reductions in certain of its foreign subsidiaries. |
| (12) | Primarily represents the Company’s effective tax rate for the period applied to the non-GAAP adjustments. |
Media Contact: Neil Shapiro (212) 271-3447 | Investor Contact: Joel Jeffrey (212) 271- 3610 | www.stifel.com/investor-relations
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