SF | Quote | Chart | News | PowerRating -- --Net Income of $22.1 million, up 73%.
--Net Revenues of $289.7 million, up 32%.
--Diluted Earnings Per Share of $0.67, up 46%.
--Record Year-to-Date Results:
--Net Income of $51.1 Million, up 30%.
--Net Revenues of $771.2 million, up 21%.
--Diluted Earnings Per Share of $1.62, up 13%.
Stifel Financial Corp. (NYSE: SF | Quote | Chart | News | PowerRating) today announced unaudited record
quarterly net income of $22.1 million, or $0.67 per diluted share, on
record net revenues of $289.7 million for its third quarter ended
September 30, 2009, compared to $12.8 million, or $0.46 per diluted
share, on net revenues of $218.9 million reported for the same period
last year.
Net income for the nine months ended September 30, 2009 was $51.1
million, or $1.62 per diluted share, on record net revenues of $771.2
million, compared with $39.4 million, or $1.44 per diluted share, on net
revenues of $639.4 million, in the prior year period. The three and nine
month periods ended September 30, 2008, include acquisition-related
charges, primarily compensation, of $3.9 million, or $0.14 per diluted
share, and $11.9 million, or $0.44 per diluted share, respectively. Our
current year third quarter and year-to-date effective tax rates were
reduced due to the recognition of a tax benefit related to an investment
and jobs creation tax credit.
At September 30, 2009, our stockholders' equity was $833.6 million,
resulting in book value per share of $27.63. During the nine months
ended September 30, 2009, we completed two public offerings of our $0.15
par value common stock totaling 2,725,000 shares for total net proceeds
of $135.6 million.
Chairman's Comments
Chairman and Chief Executive Officer Ronald J. Kruszewski commented, "We
are pleased with our quarterly results. Our company is on pace for its
14th consecutive year of record net revenues and, despite significant
investment in our platform and capabilities, is also on track to post
record net income for the year. Our quarterly results were positively
impacted by a $0.10 earnings per share tax benefit, which was offset by
approximately $0.07 earnings per share in transitional expenses,
including $1.9 million in duplicate rent for our New York offices and
$2.5 million in conversion expenses related to our UBS transaction.
During the quarter, we raised approximately $92 million in equity
capital to support our plans to become the premier middle-market
investment bank and brokerage firm."
Stifel Financial Corp.
Summary Results of Operations (Unaudited)
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
9/30/09 9/30/08 Change 6/30/09 Change 9/30/09 9/30/08 Change
Results of operations data:
Total revenues $ 292,589 $ 223,829 30.7 % $ 264,550 10.6 % $ 779,471 $ 655,091 19.0 %
Net revenues $ 289,683 $ 218,923 32.3 % $ 261,505 10.8 % $ 771,169 $ 639,351 20.6 %
Net income $ 22,138 $ 12,777 73.3 % $ 15,815 40.0 % $ 51,130 $ 39,456 29.6 %
Earnings per share:
Basic $ 0.77 $ 0.54 42.6 % $ 0.58 32.8 % $ 1.85 $ 1.68 10.1 %
Diluted $ 0.67 $ 0.46 45.7 % $ 0.51 31.4 % $ 1.62 $ 1.44 12.5 %
Weighted average shares outstanding:
Basic 28,708 23,830 20.5 % 27,455 4.6 % 27,652 23,520 17.6 %
Diluted 32,817 28,045 17.0 % 31,270 4.9 % 31,468 27,335 15.1 %
Stifel Financial Corp.
Summary Results of Operations (Unaudited)
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
9/30/09 9/30/08 Change 6/30/09 Change 9/30/09 9/30/08 Change
Revenues:
Principal transactions $ 123,238 $ 68,182 80.7 % $ 121,261 12.6 % $ 341,777 $ 200,793 70.2 %
Commissions 90,905 88,727 2.5 80,721 1.6 246,236 257,491 (4.4 )
Investment banking 35,056 25,156 39.4 24,702 41.9 75,262 67,935 10.8
Asset management and service fees 25,498 30,336 (15.9 ) 24,543 3.9 74,974 90,580 (17.2 )
Other income/(loss) 6,586 (1,391 ) * 2,739 * 9,440 (883 ) *
Operating revenues 281,283 211,010 33.3 253,966 10.8 747,689 615,916 21.4
Interest revenue 11,306 12,819 (11.8 ) 10,584 6.8 31,782 39,175 (18.9 )
Total revenues 292,589 223,829 30.7 264,550 10.6 779,471 655,091 19.0
Interest expense 2,906 4,906 (40.8 ) 3,045 (4.6 ) 8,302 15,740 (47.3 )
Net revenues 289,683 218,923 32.3 261,505 10.8 771,169 639,351 20.6
Non-interest expenses:
Compensation and benefits 193,131 150,203 28.6 175,881 9.8 516,852 441,028 17.2
Occupancy and equipment rental 24,730 17,286 43.1 20,714 19.4 63,311 49,012 29.2
Communications and office supplies 14,429 11,192 28.9 13,129 9.9 39,403 32,887 19.8
Commission and floor brokerage 6,486 4,348 49.2 6,321 2.6 17,167 8,315 106.5
Other non-interest expenses 20,071 14,800 35.6 19,351 3.7 55,336 42,940 28.9
Total non-interest expenses 258,847 197,829 30.8 235,396 10.0 692,069 574,182 20.5
Income before income taxes 30,836 21,094 46.2 26,109 18.1 79,100 65,169 21.4
Provision for income taxes 8,698 8,317 4.6 10,294 (15.5 ) 27,970 25,713 8.8
Net income $ 22,138 $ 12,777 73.3 % $ 15,815 40.0 % $ 51,130 $ 39,456 29.6 %
Earnings per share:
Basic $ 0.77 $ 0.54 42.6 % $ 0.58 32.8 % $ 1.85 $ 1.68 10.1 %
Diluted $ 0.67 $ 0.46 45.7 % $ 0.51 31.4 % $ 1.62 $ 1.44 12.5 %
Weighted average number of common shares outstanding:
Basic 28,708 23,830 20.5 % 27,455 4.6 % 27,652 23,520 17.6 %
Diluted 32,817 28,045 17.0 % 31,270 4.9 % 31,468 27,335 15.1 %
* Percentage is not meaningful.
Stifel Financial Corp.
(in thousands, except per share, employee and location amounts)
September 30, September 30, Change June 30, Change
2009 2008 2009
Statistical Information:
Book value per share $ 27.63 $ 22.21 24.4 % $ 24.86 11.1 %
Financial advisors 1,823 1,219 49.5 % 1,562 16.7 %
Full-time employees 4,289 3,038 41.2 % 3,849 11.4 %
Locations 281 194 44.8 % 239 17.6 %
Total client assets $ 83,501,000 $ 58,860,000 41.9 % $ 64,653,000 29.2 %
Review of Business Highlights
Third Quarter Highlights
For the three months ended September 30, 2009, we posted record net
revenues of $289.7 million, a 32% increase over the third quarter of
2008 and an 11% increase over the second quarter of 2009. Our revenue
growth was primarily derived from increased principal transactions and
investment banking offset by a decline in asset management fees. Net
income of $22.1 million, or $0.67 per diluted share, increased 73% over
the third quarter of 2008 and increased 40% over the second quarter of
2009.
Revenues
--
Principal transactions revenue of $123.3 million increased 81% over
the third quarter of 2008 and increased 13% from the second quarter of
2009. Principal transactions increased in the Global Wealth Management
("GWM") and Capital Markets ("CM") segments, primarily in
over-the-counter equity, corporate, government and municipal debt and
mortgage-backed bonds.
--
Commission revenue of $90.9 million increased 3% from the third
quarter of 2008 and increased 2% from the second quarter of 2009.
--
Investment banking revenue increased 39% from the third quarter of
2008 to $35.1 million and increased 42% from the second quarter of
2009. Capital raising revenues increased $11.3 million to $22.4
million as compared to the third quarter of 2008 and increased 57%
from the second quarter of 2009. Strategic advisory fees decreased 9%
to $12.7 million as compared to the third quarter of 2008 and
increased 22% from the second quarter of 2009.
--
Asset management and service fees revenue decreased 16% to $25.5
million from the third quarter of 2008 primarily as a result of a 10%
decrease in the value of assets in fee based client accounts, and
increased 4% from the second quarter of 2009, primarily as a result of
a 23% increase in the value of assets in fee based client accounts.
Non-interest expenses
--
Compensation and benefits expense increased 29% to $193.1 million from
the third quarter of 2008 and increased 10% from the second quarter of
2009, primarily due to increased production and headcount associated
with the expansion of our GWM and CM segments. For the three months
ended September 30, 2009, compensation and benefits expense includes
$14.8 million, or 5% of net revenues, of transition pay, which
primarily consist of upfront notes, signing bonuses and retention
awards in connection with our continuing expansion efforts, compared
to $9.7 million, or 4% of net revenues, for the comparable period in
2008 and $13.9 million, or 5% of net revenues, for the second quarter
of 2009.
--
Non-compensation operating expenses increased 38% to $65.7 million
from the third quarter of 2008, and increased 10% from the second
quarter of 2009 primarily due to the aforementioned expansion of our
GWM and CM segments.
Provision for income taxes
--
Provision for income taxes was $8.7 million, representing an effective
tax rate of 28%, compared to $8.3 million for the comparable period in
2008, representing an effective tax rate of 39%. Our current year
third quarter effective tax rate was reduced due to the recognition of
a tax benefit of $3.4 million related to an investment and jobs
creation tax credit.
YTD Highlights
For the nine months ended September 30, 2009, we posted record net
revenues of $771.2 million, a 21% increase over the comparable period in
2008. Our revenue growth was primarily derived from increased principal
transactions and investment banking offset by a decline in commissions
and asset management fees. Net income increased 30% to $51.1 million, or
$1.62 per diluted share.
Revenues
--
Principal transactions revenue for the nine months ended September 30,
2009 increased 70% to $341.8 million from the comparable period in
2009. Principal transactions increased in the GWM and CM segments,
primarily in over-the-counter equity, corporate, government and
municipal debt and mortgage-backed bonds.
--
Commission revenue of $246.2 million for the nine months ended
September 30, 2009 decreased 4% from the comparable period in 2008.
--
Investment banking revenue for the nine months ended September 30,
2009 increased 11% to $75.3 million from the comparable period in
2008. For the nine months ended September 30, 2009, capital raising
revenues increased 17% to $42.1 million while strategic advisory fees
increased 4% to $33.2 million as compared to the prior year.
--
Asset management and service fees revenue for the nine months ended
September 30, 2009 decreased 17% to $75.0 million from the comparable
period in 2008, primarily as a result of a 10% decrease in the value
of assets in fee based client accounts.
--
Customer margin interest revenue for the nine months ended September
30, 2009 decreased $8.6 million or 49% from the comparable period in
2008, primarily as a result of a decrease in the margin receivables
due to market volatility.
Non-interest expenses
--
For the nine months ended September 30, 2009, compensation and
benefits expense increased 17% to $516.9 million from the comparable
period in 2008, primarily due to increased production and headcount
associated with the expansion of our GWM and CM segments in the first
nine months of 2009. For the nine months ended September 30, 2009,
compensation and benefits expense includes $40.9 million, or 5% of net
revenues, of transition pay compared to $25.5 million, or 4% of net
revenues, for the comparable period in 2008.
--
Non-compensation operating expenses for the nine months ended
September 30, 2009 increased 32% to $175.2 million from the comparable
period in 2008, primarily due to the aforementioned expansion of our
GWM and CM segments during the first nine months of 2009.
Provision for income taxes
--
Provision for income taxes was $28.0 million, representing an
effective tax rate of 35%, compared to $25.7 million for the
comparable period in 2008, representing an effective tax rate of 39%.
The reduction of our year-to-date effective tax rate is attributable
to the previously mentioned tax benefit recognized in the third
quarter of 2009.
Business Segment Results
Summary Segment Results (Unaudited)
Three Months Ended Nine Months Ended
9/30/09 9/30/08 Change 6/30/09 Change 9/30/09 9/30/08 Change
Net revenues:
Global Wealth Management $ 157,145 $ 117,151 34.1 % $ 135,310 16.1 % $ 406,619 $ 358,322 13.5 %
Capital Markets 130,179 101,598 28.1 125,136 4.0 360,787 277,548 30.0
Other 2,359 174 * 1,059 122.8 3,763 3,481 8.1
Net revenues $ 289,683 218,923 32.3 % $ 261,505 10.8 % $ 771,169 $ 639,351 20.6 %
Operating contribution:
Global Wealth Management $ 27,540 23,533 17.0 % $ 22,307 23.5 % $ 67,081 $ 79,725 (15.9) %
Capital Markets 33,433 23,789 40.5 31,850 5.0 91,317 60,999 49.7
Other (30,137 ) (26,228 ) 14.9 (28,048 ) 7.4 (79,298 ) (75,555 ) 5.0
Income before income taxes $ 30,836 $ 21,094 46.2 % $ 26,109 18.1 % $ 79,100 $ 65,169 21.4 %
* Percentage is not meaningful.
Global Wealth Management Segment
The UBS branch acquisition and related customer account conversion to
our platform has enabled us to leverage our customers' assets, which
allows us the ability to provide a full array of financial products to
both our Private Client Group and Stifel Bank customers. As a result, we
have changed how we manage these reporting units and consequently they
will be combined to form the Global Wealth Management segment effective
September 30, 2009.
Third Quarter Highlights
--
Net revenues of $157.1 million, a 34% increase over the third quarter
of 2008 and a 16% increase from the second quarter of 2009. Our Global
Wealth Management segment consists of the Private Client Group ("PCG")
and Stifel Bank & Trust ("Stifel Bank") reporting units. PCG had net
revenues of $152.2 million, a 34% increase over the third quarter of
2008 and a 16% increase from the second quarter of 2009. Stifel Bank
had net revenues of $4.9 million, a 55% increase over the third
quarter of 2008 and a 19% increase from the second quarter of 2009.
--
Commission revenue increased 27% over the third quarter of 2008 and
increased 21% from the second quarter of 2009.
--
Principal transactions revenue increased 86% over the third quarter of
2008 and increased 9% from the second quarter of 2009.
--
Investment banking revenues, which represents sales commissions on
investment banking underwritings, increased 26% from the third quarter
of 2008 and increased 50% from the second quarter of 2009.
--
Asset management and service fees revenue decreased 16% from the third
quarter of 2008 and increased 4% from the second quarter of 2009.
--
For the three months ended September 30, 2009, compensation and
benefits expense was 62% of net revenues compared to 61% for the
comparable period in 2008 and 62% for the second quarter of 2009.
--
Operating contribution of $27.5 million, a 17% increase from the third
quarter of 2008 and a 24% increase from the second quarter of 2009.
--
Stifel Bank's investment portfolio increased 358% over the third
quarter of 2008 and increased 126% from the second quarter of 2009,
primarily due to purchases of agency mortgage-backed securities.
--
Stifel Bank's retained loan portfolio increased 66% over the third
quarter of 2008 and increased 86% from the second quarter of 2009,
driven by the addition of Reg U loans acquired in the UBS transaction.
--
Bank deposits increased 235% over the third quarter of 2008 and
increased 86% from the second quarter of 2009.
YTD Highlights
--
Net revenues of $406.6 million for the nine months ended September 30,
2009, a 14% increase over the comparable period in 2008. PCG and
Stifel Bank had net revenues of $393.9 million and $12.7 million for
the nine months ended September 30, 2009, a 13% and 50% increase,
respectively, over the comparable period in 2008.
--
Commission revenue and principal transactions revenue for the nine
months ended September 30, 2009 increased 8% and 55%, respectively,
over the comparable period in 2008.
--
Investment banking revenue, which represents sales commissions on
investment banking underwritings, decreased 33% from the comparable
period in 2008.
--
Asset management and service fees revenue decreased 17% from the
comparable period in 2008.
--
For the nine months ended September 30, 2009, compensation and
benefits expense was 62% of net revenues compared to 61% for the
comparable period in 2008.
--
Operating contribution of $67.1 million for the nine months ended
September 30, 2009, a 16% decrease from the comparable period in 2008.
--
We completed the integration of Butler Wick PCG offices we acquired on
December 31, 2008.
--
We completed three waves of the UBS acquisition during the third
quarter. The final wave closed on October 16, 2009.
--
We added 83 PCG offices and 583 Financial Advisors, including 40
offices and 245 Financial Advisors from UBS and 17 offices and 67
Financial Advisors from Butler Wick, in the first nine months as part
of our ongoing footprint expansion efforts.
Global Wealth Management Results and Statistical Information
(Unaudited)
Three Months Ended Nine Months Ended
9/30/09 9/30/08 Change 6/30/09 Change 9/30/09 9/30/08 Change
Revenues:
Commissions $ 63,161 $ 49,563 27.4 % $ 52,091 21.3 % $ 158,468 $ 146,860 7.9 %
Principal transactions 53,052 28,468 86.4 48,759 8.8 140,248 90,663 54.7
Asset management and service fees 25,406 30,111 (15.6 ) 24,452 3.9 74,689 90,199 (17.2 )
Investment banking 4,263 3,371 26.4 2,843 49.9 9,176 13,690 (33.0 )
Net interest 7,186 5,397 33.2 5,531 29.9 18,124 15,810 14.6
Other income/(loss) 4,077 241 * 1,634 * 5,914 1,100 *
Net revenues 157,145 117,151 34.1 135,310 16.1 406,619 358,322 13.5
Non-interest expenses:
Compensation and benefits 96,711 71,388 35.5 83,829 15.4 253,169 218,661 15.8
Other non-interest expenses 32,894 22,230 48.0 29,174 12.8 86,369 59,936 44.1
Total non-interest expenses 129,605 93,618 38.4 113,003 14.7 339,538 278,597 21.9
Income before income taxes $ 27,540 $ 23,533 17.0 % $ 22,307 23.5 % $ 67,081 $ 79,725 (15.9) %
As a percentage of net revenues:
Compensation and benefits 61.5 % 60.9 % 62.0 % 62.3 % 61.0 %
Other non-interest expenses 21.0 % 19.0 % 21.6 % 21.2 % 16.8 %
Net margin 17.5 % 20.1 % 16.4 % 16.5 % 22.2 %
* Percentage is not meaningful.
Stifel Bank & Trust
(in thousands)
September 30, June 30, Change September 30, Change
2009 2009 2008
Other information:
Assets $ 965,569 $ 532,308 81.4 % $ 327,729 195.0 %
Investment securities $ 300,623 $ 133,238 125.6 % $ 65,592 358.3 %
Retained loans, net $ 336,865 $ 181,580 85.5 % $ 203,181 65.7 %
Loans held for sale, net $ 30,947 $ 43,320 (28.6) % $ 11,370 172.2 %
Deposits $ 875,028 $ 470,430 86.0 % $ 261,018 235.2 %
Allowance as a percentage of loans (1) 0.73 % 1.66 % 1.22 %
Non performing loans as a percentage of assets 0.18 % 0.84 % 0.06 %
(1) Excluding acquired loans of $140.0 million, the
allowance as a percentage of gross loans totaled 1.25% as of 9/30/09.
Capital Markets Segment
Third Quarter Highlights
--
Net revenues of $130.2 million, a 28% increase over the third quarter
of 2008 and a 4% increase from the second quarter of 2009. Our Capital
Markets segment consists of our Equity Capital Markets ("ECM") and
Fixed Income Capital Markets ("FICM") reporting units.
--
Institutional brokerage revenues were $97.9 million, a 24%
increase over the third quarter of 2008 and a 3% decrease from the
second quarter of 2009. ECM institutional brokerage revenues were
$39.7 million, an 11% decrease over the third quarter of 2008 and a 4%
increase from the second quarter of 2009. FICM institutional brokerage
revenues were $58.2 million, a 71% increase over the third quarter of
2008 and an 8% decrease from the second quarter 2009.
--
Investment banking revenues were $30.8 million, a 41% increase
over the third quarter of 2008 and a 41% increase over the second
quarter of 2009. ECM investment banking revenues were $24.6 million, a
35% increase over the third quarter of 2008 and a 41% increase over
the second quarter of 2009. FICM investment banking revenues were $6.2
million, a 76% increase over the third quarter of 2008 and a 42%
increase over the second quarter of 2009.
--
Capital raising revenues were $18.1 million, a 134%
increase over the third quarter of 2008 and a 59% increase over
the second quarter of 2009. ECM capital raising revenues were
$13.2 million, a 144% increase over the third quarter of 2008 and
a 75% increase over the second quarter of 2009. FICM capital
raising revenues were $4.9 million, a 110% increase over the third
quarter of 2008 and a 27% increase over the second quarter of 2009.
--
Advisory fees were $12.7 million, a 10% decrease
from the third quarter of 2008 and a 22% increase over the second
quarter of 2009. ECM advisory fees were $11.4 million, an 11%
decrease from the third quarter of 2008 and a 15% increase over
the second quarter of 2009. FICM advisory fees were $1.3 million,
an 11% increase over the third quarter of 2008 and a 142% increase
over the second quarter of 2009.
--
For the three months ended September 30, 2009, compensation and
benefits expense was 60% of net revenues compared to 61% for the third
quarter of 2008 and 59% for the second quarter of 2009.
--
Operating contribution of $33.4 million, a 41% increase over the third
quarter of 2008 and a 5% increase from the second quarter of 2009.
--
Net margins were 26% compared to 23% for the third quarter of 2008 and
25% in the second quarter 2009.
YTD Highlights
--
Net revenues of $360.8 million for the nine months ended September 30,
2009, a 30% increase over the comparable period in 2008.
--
Institutional brokerage revenues were $289.3 million, a 31%
increase over the comparable period in 2008. ECM and FICM
institutional brokerage revenues were $114.6 million and $174.7
million, a 1% decrease and 66% increase, respectively, over the
comparable period in 2008.
--
Investment banking revenues were $66.1 million, a 22% increase
over the comparable period in 2008. ECM and FICM investment banking
revenues were $52.1 million and $14.0 million, a 17% and 42% increase,
respectively, over the comparable period in 2008.
--
Capital raising revenues were $32.9 million, a 48%
increase over the comparable period in 2008. ECM and FICM capital
raising revenues were $21.4 million and $11.5 million, a 28% and
107% increase, respectively, over the comparable period in 2008.
--
Advisory fees were $33.2 million, a 4% increase over
the comparable period in 2008. ECM and FICM advisory fees were
$30.7 million and $2.5 million, an 11% increase and a 42%
decrease, respectively, over the comparable period in 2008.
--
For the nine months ended September 30, 2009, compensation and
benefits expense was 59% of net revenues compared to 62% for the
comparable period in 2008.
--
Net margins for the nine months ended September 30, 2009 were 25%
compared to 22% for the comparable period in 2008.
--
We added 63 revenue producers in the first nine months of 2009.
Capital Markets Results and Statistical Information (Unaudited)
Three Months Ended Nine Months Ended
9/30/09 9/30/08 Change 6/30/09 Change 9/30/09 9/30/08 Change
Revenues:
Principal transactions $ 70,186 $ 39,713 76.7 % $ 72,502 (3.2) % $ 201,529 $ 110,129 83.0 %
Commissions 27,743 39,164 (29.2 ) 28,630 (3.1 ) 87,767 110,631 (20.7 )
Capital raising 18,070 7,733 133.7 11,391 58.6 32,890 22,257 47.8
Advisory fees 12,724 14,052 (9.5 ) 10,467 21.6 33,197 31,988 3.8
Investment banking 30,794 21,785 41.4 21,858 40.9 66,087 54,245 21.8
Other income 1,456 936 55.6 2,146 (32.2 ) 5,404 2,543 112.5
Net revenues 130,179 101,598 28.1 125,136 4.0 360,787 277,548 30.0
Non-interest expenses:
Compensation and benefits 77,483 62,030 24.9 74,250 4.4 214,251 171,875 24.7
Other non-interest expenses 19,263 15,779 22.1 19,036 1.2 55,219 44,674 23.6
Total non-interest expenses 96,746 77,809 24.3 93,286 3.7 269,470 216,549 24.4
Income before income taxes $ 33,433 $ 23,789 40.5 % $ 31,850 5.0 % $ 91,317 $ 60,999 49.7 %
As a percentage of net revenues:
Compensation and benefits 59.5 % 61.0 % 59.3 % 59.4 % 61.9 %
Other non-interest expenses 14.8 % 15.6 % 15.3 % 15.3 % 16.1 %
Net margin 25.7 % 23.4 % 25.4 % 25.3 % 22.0 %
Statement of Financial Condition
Highlights (Unaudited)
Total assets increased 42% to $2.9 billion at September 30, 2009 from
$2.0 billion at September 30, 2008. The increase is primarily
attributable to increased receivables, trading inventory, financial
instruments, loans and advances to financial advisors and the
recognition of goodwill associated with our acquisition of UBS, which is
based on preliminary estimates and is subject to change upon the final
valuation. Our broker-dealer subsidiary's gross assets and liabilities,
including trading inventory, stock loan/borrow, receivables and payables
from/to brokers, dealers and clearing organizations and clients,
fluctuate with our business levels and overall market conditions. The
increase in assets is primarily attributable to the growth of our
company, both organically and through the acquisition of UBS. Total
stockholders' equity increased $268.2 million, or 47%, to $833.6 million
at September 30, 2009, principally due to proceeds from our two equity
offerings, net income, and amortization of stock-based awards.
At September 30, 2009, we reported total securities owned and
investments at fair value of $990.2 million, which included securities
categorized as level III of $73.3 million. Our level III assets include
$55.8 million of auction rate securities, of which the auctions have
failed.
Conference Call Information
Stifel Financial Corp. will hold a conference call Monday, November 9,
2009, at 4:45 p.m. Eastern. This call will be Web cast and slides can be
accessed on the Investor Relations portion of the Stifel Financial Corp.
website at www.stifel.com,
as well as on all sites within Thomson/CCBN's Investor Distribution
Network. Questions may be posed to management by participants on the
call, and in response, the company may disclose additional material
information. To participate in the question and answer portion on the
call, please dial 888-676-3684 and request the Stifel Financial Corp.
earnings call. The subjects to be covered may also contain
forward-looking information.
Company Information
Stifel Financial Corp. operates 297 offices in 41 states and the
District of Columbia through its principal subsidiary, Stifel Nicolaus
and Company, Inc., and 3 European offices through Stifel Nicolaus
Limited. Stifel Nicolaus provides securities brokerage, investment
banking, trading, investment advisory, commercial and retail banking and
related financial services to individual investors, professional money
managers, businesses, and municipalities. Stifel Bank & Trust offers a
full range of consumer and commercial lending solutions. To learn more
about Stifel, please visit our company's web site at www.stifel.com.
Forward-Looking Statements
This press release contains certain statements that may be deemed to be
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. All statements in this press release not dealing with historical
results are forward-looking and are based on various assumptions. The
forward-looking statements in this press release are subject to risks
and uncertainties that could cause actual results to differ materially
from those expressed in or implied by the statements. Factors that may
cause actual results to differ materially from those contemplated by
such forward-looking statements include, among other things, the
following possibilities: the ability to successfully integrate the
acquired companies or the branch offices and financial advisors as part
of the our transaction with UBS; a material adverse change in the
financial condition; the risk of borrower, depositor and other customer
attrition; a change in general business and economic conditions; changes
in the interest rate environment, deposit flows, loan demand, real
estate values, and competition; changes in accounting principles,
policies or guidelines; changes in legislation and regulation; other
economic, competitive, governmental, regulatory, geopolitical, and
technological factors affecting the companies' operations, pricing, and
services; and other risk factors referred to from time to time in
filings made by Stifel with the Securities and Exchange Commission.
Forward-looking statements speak only as to the date they are made.
Stifel does not undertake to update forward-looking statements to
reflect circumstances or events that occur after the date the
forward-looking statements are made. Stifel disclaims any intent or
obligation to update these forward-looking statements.
SOURCE: Stifel Financial Corp.
Stifel Financial Corp.
James M. Zemlyak, Chief Financial Officer
314-342-2228
zemlyakj@stifel.com
For full details on Stifel Financial Corp (SF) SF. Stifel Financial Corp (SF) has Short Term PowerRatings at TradingMarkets. Details on Stifel Financial Corp (SF) Short Term PowerRatings is available at This Link.
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